Bond increases; hearing; new bond or rider

Sec. 6. (a) The administrator may propose an increase in the amount of a licensed distributor's current bond, letter of credit, or cash deposit

if the administrator has deemed the current amount to be insufficient to ensure payment to the state of the tax, penalty, and interest for which the

licensed distributor is or may become liable.

(b) If the licensed distributor does not comply with the administrator's proposal within a reasonable time after receiving notice of the

proposed bond, letter of credit, or cash deposit increase, the administrator shall notify the licensed distributor in writing of a hearing to allow the

licensed distributor to dispute the proposed increase.

(c) The administrator shall give the licensed distributor at least fifteen (15) days written notice of the hearing.

(d) If after a hearing the administrator determines that an increase is warranted, the licensed distributor shall submit a new bond or rider,

letter of credit, or cash deposit in the amount determined by the administrator.

(e) The new bond or rider must meet the requirements set forth in section 5 of this rule.

(f) If the new bond or rider, letter of credit, or cash deposit required under this section is unsatisfactory or not furnished within the time

prescribed, the administrator shall cancel the distributor's license.