Section 45IAC12-4-6. Bond increases; hearing; new bond or rider

   (a) The administrator may propose an increase in a licensed distributor's current bond amount if the administrator has deemed the current bond amount to be insufficient to insure payment to the state of the tax, penalty and interest for which the licensed distributor is or may become liable.

  (b) If after the proposed increased bond amount notice is received by the licensed distributor, the licensed distributor does not comply with the administrator's proposal within a reasonable time, the administrator shall notify the licensed distributor in writing of a hearing to allow the licensed distributor to show cause why the proposed increase is not warranted.

  (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 to the administrator within a time prescribed by the administrator, a new bond or rider in the amount determined by the administrator.

  (e) The new bond or rider must meet the requirements set forth in section 406 of this chapter [45 IAC 12-4-5].

  (f) If the new bond or rider required under this section is unsatisfactory or not furnished within the time prescribed by the administrator, the administrator shall cancel the distributor's license. (Department of State Revenue; Reg 6-6-1.1-408(010); filed Sep 19, 1983, 2:23 pm: 6 IR 2320; filed Apr 30, 1986, 3:32 pm: 9 IR 2189)