§ 57-43.2-07 — Bond or letter of credit required

North Dakota § 57-43.2-07

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-43.2: Special Fuels and Importer for Use Taxes

Text

As a condition precedent to the issuance of a single or multiple license, a supplier,
distributor, retailer, or importer shall furnish a surety bond, a cash bond, or an approved letter of
credit as security to guarantee the payment of the special fuel taxes imposed by this chapter. A
terminal operator or an exporter who is not also licensed as a supplier or distributor is exempt
from this requirement.
1. The surety bond, cash bond, or letter of credit must be in an amount prescribed by the
commissioner but not less than one thousand dollars. If the commissioner requires a
separate license for liquefied petroleum gases, a separate security is required for that

license, and the surety bond, cash bond, or letter of credit must be in an amount
prescribed by the commissioner but not less than five hundred dollars.
2. The surety bond, cash bond, or letter of credit is subject to approval by the
commissioner.
3. After a single or multiple license has been in effect for five or more years, the
commissioner may review the person's records and may waive the requirement for a
security. The requirement for a security may be reinstated at the discretion of the
commissioner.
4. A surety bond or letter of credit provided as security must be kept in the custody of the
commissioner and may be used by the commissioner, without notice to the principal, if
it becomes necessary to cover the special fuel tax, penalties, and interest due.
5. Money deposited with the commissioner as a cash bond must be made in the form of
a cashier's check or bank money order payable to the commissioner. The money
received must be paid by the commissioner to the state treasurer and credited by the
treasurer into a special fund to be known as the motor fuel tax security trust fund. The
money deposited may be used by the commissioner, without notice to the depositor, if
it becomes necessary to cover tax, penalties, and interest due. If the money deposited
is used to cover unpaid liabilities, the commissioner shall certify the information to the
director of the office of management and budget. The office of management and
budget shall transmit the money to the commissioner who shall apply as much of the
money deposited by the person as is necessary to satisfy the liabilities. When in the
commissioner's judgment it is no longer necessary to require the deposit to be
maintained, the commissioner shall certify the information to the director of the office of
management and budget who shall pay the unused money to the depositor.