N.J. Admin. Code § 18:18-3.7

Current through Register Vol. 56, No. 24, December 18, 2024

Section 18:18-3.7 - Bond duration

(a) Every bond filed with and approved by the Director shall, without the necessity of periodic renewal, remain in force and effect until such time as the Supplier License, Distributor's License, or Terminal Operator's License of which it is a part, is revoked for cause or otherwise cancelled or has expired.

1. No action on a bond shall start after two years from the date of revocation or cancellation of the license of which it is a part.

(b) Release and substitution of surety.

1. The surety on a bond shall be released and discharged from all liability to the State accruing on such bond after the expiration of 60 days from the date upon which such surety shall have lodged with the Director a written request to be released and discharged; but

2. This provision shall not operate to relieve, release, or discharge the surety from any liability already accrued or which shall accrue before the expiration of the 60-day period;

3. Upon receipt of any such request, the Director shall notify the principal who furnished the bond;

4. Unless the principal shall, on or before the expiration of the 60-day period, file a new bond, the Director shall cancel the principal's license; and

5. Sixty days after the licensee makes a written request for release to the Director, the cash deposit, letter of credit, or certificate of deposit provided by a licensee shall be cancelled as security for any obligation accruing after the expiration of the 60-day period. However, the Director may retain all or part of the bond for up to three years and one day as security for any obligations accruing before the effective date of the cancellation. The Director shall release any part not retained to the licensee. Before the expiration of the 60-day period, the licensee shall provide the Director with a bond that satisfies the requirements of N.J.S.A. 54:39-129.g or the Director shall cancel the license.

N.J. Admin. Code § 18:18-3.7

Amended by 49 N.J.R. 2805(c), effective 8/21/2017