Section 260:37 Bond Required of Licensed Distributor.
I. (a) Every distributor shall file with the department a bond:
(1) In an amount equal to approximately 3 times the monthly road toll liability of the distributor, but not less than $10,000, on a form to be approved by the commissioner;
(2) With a surety company authorized to engage in business with the state as surety thereon;
(3) Upon which such distributor shall be the principal obligor and the state of New Hampshire shall be the obligee;
(4) Conditioned upon the prompt filing of true reports and the payment by the distributor of all motor vehicle road tolls which are imposed and which are to be collected under this subdivision, together with all penalties and interests thereon, and generally upon faithful compliance with the provisions of this subdivision.
(b) Changes in the monthly road toll liability level shall also require the bond amount to be adjusted so as to comply with this section.
(c) Annually, or sooner, the department shall review the distributor's average liability based on the prior 6 months' road toll returns and, if applicable, notify the distributor of the required adjustment in the level of the bond. Failure to comply with the adjustment or to maintain the bond at the required level shall result in the cancellation of the license.
II. Any surety on any bond furnished by any distributor as above provided shall be released and discharged from any and all liability accruing on the bond after the expiration of 60 days from the date upon which such surety shall have filed with the commissioner a written request to be released and discharged.
III. In lieu of furnishing a bond executed by a surety company, a distributor may deposit with the state treasurer cash or obligations of the United States or obligations of any federal agency fully guaranteed by the United States or bonds of the state of New Hampshire to the amount of the bond required by this section.
Source. 1931, 159:1. RL 120:2. 1943, 65:1. RSA 265:9. 1979, 358:8, III. 1981, 146:1. 1985, 236:8. 1987, 179:3. 1994, 22:2. 1996, 292:13. 2001, 73:1, eff. July 1, 2001. 2008, 165:1, eff. July 1, 2008.