Utah § 32B-2-604 Bond related to package agency.

Utah Statutes

§ 32B-2-604 — Bond related to package agency.

Utah·Title 32B Alcoholic Beverage Control Act·Ch. 32B-2 Alcoholic Beverage Services Administration Act·Part 32B-2-6 Package Agency

(1)(1)(a) A package agent who has a consignment liquor inventory owned by the state shall post a:

(1)(a)(i) consignment surety bond:

(1)(a)(i)(A) payable to the department; and

(1)(a)(i)(B) in the amount of the consignment inventory; and

(1)(a)(ii) cash or surety bond:

(1)(a)(ii)(A) payable to the department; and

(1)(a)(ii)(B) in the penal amount of at least $1,000, as the department determines.

(1)(b) A package agent who has a consignment liquor inventory shall ensure that a consignment surety bond is conditioned upon a package agent's return of the unsold consignment liquor inventory at the termination of a package agency agreement.

(2)A package agent that owns the package agency's liquor inventory shall post a cash bond or surety bond:

(2)(a) in the penal amount of at least $1,000,

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(1) (1)(a) A package agent who has a consignment liquor inventory owned by the state shall post a:
(1)(a)(i) consignment surety bond:

(1)(a)(i)(A) payable to the department; and
(1)(a)(i)(B) in the amount of the consignment inventory; and
(1)(a)(ii) cash or surety bond:

(1)(a)(ii)(A) payable to the department; and
(1)(a)(ii)(B) in the penal amount of at least $1,000, as the department determines.
(1)(b) A package agent who has a consignment liquor inventory shall ensure that a consignment surety bond is conditioned upon a package agent's return of the unsold consignment liquor inventory at the termination of a package agency agreement.
(2) A package agent that owns the package agency's liquor inventory shall post a cash bond or surety bond:

(2)(a) in the penal amount of at least $1,000, as the department determines; and
(2)(b) payable to the department.
(3) A package agent shall procure and maintain the bond required under this section for as long as the package agent continues to operate as a package agent.
(4) A bond required under this section shall be:

(4)(a) in a form approved by the attorney general; and
(4)(b) conditioned upon the package agent's faithful compliance with this title, the rules of the commission, and the package agency agreement.
(5) (5)(a) If a surety bond posted by a package agency under this section is canceled due to the package agent's or package agency's negligence, the department may assess a $300 reinstatement fee.
(5)(b) No part of a bond posted by a package agent under this section may be withdrawn:
(5)(b)(i) during the period the package agency is in effect; or
(5)(b)(ii) while a revocation of the package agency is pending against the package agent.
(6) (6)(a) A bond posted under this section by a package agent may be forfeited if the package agency is revoked.
(6)(b) Notwithstanding Subsection (6)(a), the department may make a claim against a bond posted by a package agent for money owed the department under this title without the commission first revoking the package agency.

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