Indiana § 4-35-5-2.6 Bond

Indiana Statutes

§ 4-35-5-2.6 — Bond

Indiana § 4-35-5-2.6

Art. 35GAMBLING GAMES AT RACETRACKS

Ch. 5Gambling Game License

This text of Indiana § 4-35-5-2.6 (Bond) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 4-35-5-2.6 (2026).

Text

6.

(a)A licensee under this chapter must post a bond with the commission at least sixty (60) days before the commencement of gambling games at the licensee's racetrack.

(b)The bond shall be furnished in:

(1)cash or negotiable securities;

(2)a surety bond:

(A)with a surety company approved by the commission; and

(B)guaranteed by a satisfactory guarantor; or

(3)an irrevocable letter of credit issued by a banking institution of Indiana acceptable to the commission.

(c)If a bond is furnished in cash or negotiable securities, the principal shall be placed without restriction at the disposal of the commission, but income inures to the benefit of the licensee.

(d)The bond:

(1)is subject to the approval of the commission;

(2)must be in an amount that the commission determines will adequ

Free access — add to your briefcase to read the full text and ask questions with AI

6. (a) A licensee under this chapter must post
a bond with the commission at least sixty (60) days before the
commencement of gambling games at the licensee's racetrack.
(b) The bond shall be furnished in:
(1) cash or negotiable securities;
(2) a surety bond:
(A) with a surety company approved by the commission; and
(B) guaranteed by a satisfactory guarantor; or
(3) an irrevocable letter of credit issued by a banking institution
of Indiana acceptable to the commission.
(c) If a bond is furnished in cash or negotiable securities, the
principal shall be placed without restriction at the disposal of the
commission, but income inures to the benefit of the licensee.
(d) The bond:
(1) is subject to the approval of the commission;
(2) must be in an amount that the commission determines will
adequately reflect the amount that a local community will expend
for infrastructure and other facilities associated with gambling
games at the racetrack; and
(3) must be payable to the commission as obligee for use in
payment of the licensee's financial obligations to the local
community, the state, and other aggrieved parties, as determined
by the rules of the commission.
(e) If after a hearing (after at least five (5) days written notice) the
commission determines that the amount of a licensee's bond is
insufficient, the licensee shall upon written demand of the commission
file a new bond.
(f) The commission may require a licensee to file a new bond with
a satisfactory surety in the same form and amount if:
(1) liability on the old bond is discharged or reduced by judgment
rendered, by payment made, or otherwise; or
(2) in the opinion of the commission any surety on the old bond
becomes unsatisfactory.
(g) If a new bond obtained under subsection (e) or (f) is
unsatisfactory, the commission shall cancel the licensee's license. If the
new bond is satisfactorily furnished, the commission shall release in
writing the surety on the old bond from any liability accruing after the
effective date of the new bond.
(h) The proceeds of a bond that is in default under this subsection
are paid to the commission for the benefit of the local unit in which the
racetrack is located.
(i) The total and aggregate liability of the surety on a bond is limited
to the amount specified in the bond, and the continuous nature of the
bond may in no event be construed as allowing the liability of the
surety under a bond to accumulate for each successive approval period
during which the bond is in force.
(j) The commission may adopt rules authorizing the release of a
bond under this section.