Bond, letter of credit, or cash deposit; furnishing; release from
liability; retaining cash deposit
Sec. 8. (a) A carrier shall, at the request of the department and for
cause, furnish a surety bond, letter of credit, or cash deposit to the
department in order to ensure payment of the taxes imposed under
this chapter and to permit the department to make a refund to the
carrier under section 7 of this chapter. The bond, letter of credit, or
cash deposit must be:
(1) in an amount of not less than two (2) times the amount of
tax due or refund requested under this chapter for the reporting
period applicable to the carrier, as determined by the
department;
(2) payable to the state;
(3) conditioned that the carrier will pay all taxes for which the
carrier is or becomes liable under this chapter from the date of
the bond, letter of credit, or cash deposit to thirty (30) days after
either the carrier, the surety, or the financial institution notifies
the department that the bond, letter of credit, or cash deposit has
been cancelled; and
(4) executed by a surety authorized under Indiana law in the
case of a bond or by a financial institution approved by the
commissioner in the case of a letter of credit.
(b) Sixty (60) days after making a written request for release to
the commissioner, the surety of a bond furnished by a carrier 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.
(c) One hundred eighty (180) days after making a written request
for release to the commissioner, the financial institution issuing the
letter of credit for a carrier is released from any liability accruing on
the letter of credit.
(d) The commissioner shall promptly notify the carrier furnishing
the bond or letter of credit that a release has been requested. Unless
the carrier furnishes a new bond within the sixty (60) day period or
a new letter of credit within the one hundred eighty (180) day period,
the commissioner shall cancel the carrier's annual permit.
(e) Sixty (60) days after making a written request for release to
the commissioner, the cash deposit provided by a carrier is cancelled
as security for any obligation accruing after the expiration of the
sixty (60) day period. However, the administrator may retain all or
part of the cash deposit for up to three (3) years and one (1) day as
security for any obligation 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 carrier. Before the expiration
of the sixty (60) day period, the carrier must provide a bond or letter
of credit or the commissioner shall cancel the carrier's annual permit.
(f) The department has cause for requiring security from a carrier
under this section if:
(1) a carrier fails to file timely reports required by this chapter;
(2) a carrier fails to remit the tax imposed by this chapter; or
(3) an audit of a carrier's operations under this chapter causes
the department to reasonably believe that tax collection or
remittance required by this chapter is in jeopardy.
As added by Acts 1982, P.L.59, SEC.1. Amended by P.L.77-1985,
SEC.30; P.L.97-1987, SEC.40; P.L.60-1990, SEC.6.
Last modified: May 28, 2006