Release of surety from liability; written request; notice;
cancellation
Sec. 48. (a) Sixty (60) days after making a written request for
release to the commissioner, the surety of a bond furnished by a
licensee is released from any liability to the state accruing on the
bond after the sixty (60) day period. The release does not affect any
liability accruing before the expiration of the sixty (60) day period.
(b) The commissioner shall promptly notify the licensee
furnishing the bond that a release has been requested. Unless the
licensee obtains a new bond that meets the requirements of this
chapter and files with the commissioner the new bond within the
sixty (60) day period, the commissioner shall cancel the license.
(c) Sixty (60) days after making a written request for release to
the commissioner, the cash deposit provided by a licensee is canceled
as security for any obligation accruing after the expiration of the
sixty (60) day period. However, the commissioner may retain all or
part of the cash deposit for up to three (3) years and one (1) day as
security for any obligations accruing before the effective date of the
cancellation. Any part of the deposit that is not retained by the
commissioner shall be released to the licensee. Before the expiration
of the sixty (60) day period, the licensee must provide the
commissioner with a bond that satisfies the requirements of this
chapter or the commissioner shall cancel the license.
As added by P.L.277-1993(ss), SEC.44.
Last modified: May 28, 2006