370 Neb. Admin. Code, ch. 400, § 406

Current through September 17, 2024

Section 370-400-406 - FINANCIAL SECURITY

406.01 Bonds

The Division shall determine if bonds will be required of Lottery Game Retailers. If a bond is required, each Lottery Game Retailer shall provide a bond in the amount determined by the Division to safeguard the State's interest in tickets to be sold by a Lottery Game Retailer and the resulting proceeds due the Division.

406.02 Lottery Game Retailer Liability

The Lottery Game Retailer is liable for all lottery tickets accepted by the Lottery Game Retailer. Tickets which are erroneous or mutilated when received by a Lottery Game Retailer may be immediately returned to the Division for credit. After acceptance, the Lottery Game Retailer is responsible for the condition and security of the tickets and for any losses resulting from tickets which become lost, stolen, or damaged.

406.03 Separate Account Required

Each Lottery Game Retailer shall maintain a separate account for proceeds from the sale of lottery tickets. All of the proceeds less prizes paid, and the compensation allowed to the retailer shall be deposited to the account. The account is a trust account of monies held for the benefit of the State.

406.04 Electronic funds transfers

A Lottery Game Retailer shall, before receiving a contract, authorize the debiting or crediting of an account in the Lottery Game Retailer's name for the purpose of electronic funds transfer to or from the state's collection account, as provided in these regulations.

406.04A The Lottery Game Retailer shall execute all forms required by the Division, the Lottery Game Retailer's bank or the initiating bank.

406.04B The Lottery Game Retailer shall be responsible for any fees or service charges assessed by the bank for maintaining the required account.

406.04C If the Lottery Game Retailer finds it necessary to change its bank account from one bank to another, he must submit a newly executed "Electronic Funds Transfer Authorization" form for the new bank account. The Lottery Game Retailer may not discontinue use of its previously approved bank account until notice is received from the Division that the new account is approved for use.

406.04D The Division shall establish a schedule for processing the EFT transactions against Lottery Game Retailer's lottery bank accounts and issue instructions to Lottery Game Retailers on how settlement of account will be made.

370 Neb. Admin. Code, ch. 400, § 406