§ 105-113.13. Secretary may investigate applicant for distributor's license and require a bond. - North Carolina Statutes

§ 105‑113.13.  Secretarymay investigate applicant for distributor's license and require a bond.

(a)        Investigation. –The Secretary may investigate an applicant for a distributor's license todetermine if the information the applicant submits with the application isaccurate and if the applicant is eligible to be licensed as a distributor. TheSecretary may decline to issue a distributor's license to an applicant when theSecretary has reasonable cause to believe any of the following:

(1)        That the applicanthas willfully withheld information requested by the Secretary for the purposeof determining the applicant's eligibility for the license.

(2)        That informationsubmitted with the application is false or misleading.

(3)        That the applicationis not made in good faith.

(b)        Bond. – TheSecretary may require a distributor to furnish a bond in an amount thatadequately protects the State from loss if the distributor fails to pay taxesdue under this Part.  A bond shall be conditioned on compliance with this Part,shall be payable to the State, and shall be in the form required by theSecretary.  The Secretary shall set the bond amount based on the anticipatedtax liability of the distributor.  The Secretary shall periodically review thesufficiency of bonds required of the distributor and shall increase the amountof a required bond if the bond amount no longer covers the anticipated taxliability of the distributor.  The Secretary shall decrease the amount of arequired bond if the Secretary finds that a lower bond amount will protect theState adequately from loss. (1969, c. 1075, s. 2; 1973, c. 476, s. 193; 1991 (Reg.Sess., 1992), c. 955, s. 5; 1993, c. 442, s. 6.)