58.1-2211 - Bond or certificate of deposit requirements. - Virginia Statutes

§ 58.1-2211. Bond or certificate of deposit requirements.

A. An applicant for a license as a terminal operator, supplier, importer,blender, permissive supplier, distributor, or aviation consumer shall filewith the Commissioner a bond or certificate of deposit. The bond orcertificate of deposit shall be conditioned upon compliance with therequirements of this chapter, be payable to the Commonwealth, and be in theform required by the Commissioner. The amount of the bond or certificate ofdeposit shall be as follows:

1. For an applicant for a license as a (i) terminal operator, (ii) supplierwho is a position holder or a person who receives motor fuel pursuant to atwo-party exchange, (iii) bonded importer, or (iv) permissive supplier, theamount shall be $2,000,000; and

2. For an applicant for a license as (i) a supplier who is a fuel alcoholprovider but is neither a position holder nor a person who receives motorfuel pursuant to a two-party exchange; (ii) an occasional importer; (iii) adistributor; (iv) a blender; or (v) an aviation consumer, the amount shall bethree times the applicant's average expected monthly tax liability under thischapter, as determined by the Commissioner. The amount shall not be less than$2,000 nor more than $300,000.

B. An applicant for a license both as a distributor and as a bonded importershall file only the bond or certificate of deposit required of a bondedimporter. An applicant for two or more of the licenses listed in subdivisionA 2 may file one bond or certificate of deposit that covers the combinedliabilities of the applicant under all the activities, in which event theamount of the bond or certificate of deposit for the combined activitiesshall not exceed $300,000.

C. When notified to do so by the Commissioner, a person who has filed a bondor certificate of deposit and who holds a license listed in subdivision A 2shall file an additional bond or certificate of deposit in the amountrequired by the Commissioner. The person shall file the additional bond orcertificate of deposit within thirty days after receiving the notice from theCommissioner. However, the amount of the initial bond or certificate ofdeposit and any additional bond or certificate of deposit filed by thelicensee shall not exceed $300,000.

Any licensee who disagrees with the Commissioner's decision requiring new oradditional security shall be entitled to a hearing. Such matter shall, withinthirty days, be scheduled for a prompt hearing before the Commissioner afterwritten request for such hearing is received by the Commissioner.

(2000, cc. 729, 758; 2006, c. 594.)