{"data":{"id":"us-nc/n.c.-gen.-stat.-105-113.86","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 105-113.86","heading":"Bond or irrevocable letter of credit.","body":"(a)\tWholesalers and Importers. - The Secretary may require a wholesaler or importer to furnish a bond in an amount that adequately protects the State from a wholesaler's or importer's failure to pay taxes due under this Article. The amount of the bond shall not be less than five thousand dollars ($5,000).\n(a1)\tDistilleries. - The Secretary may require a distillery to furnish a bond in an amount that adequately protects the State from a distillery's failure to pay taxes under this Article. The amount of the bond shall not be less than two thousand dollars ($2,000).\n(a2)\tPeriodic Review. - The Secretary should periodically review the sufficiency of the bonds required under this section. The Secretary may increase the amount required, not to exceed fifty thousand dollars ($50,000), if the bond no longer covers the taxpayer's anticipated tax liability. The Secretary may decrease the amount required when the Secretary determines that a smaller bond amount will adequately protect the State from loss. The bond must be conditioned on compliance with this Article, payable to the State, in a form acceptable to the Secretary, and secured by a corporate surety.\n(b)\tNonresident Vendors. - The Secretary may require the holder of a nonresident vendor ABC permit to furnish a bond in an amount not to exceed two thousand dollars ($2,000). The bond must be conditioned on compliance with this Article, payable to the State in a form acceptable to the Secretary, and secured by a corporate surety.\n(c)\tLetter of Credit. - For purposes of this section, a wholesaler or importer, a nonresident vendor, or a distillery may substitute an irrevocable letter of credit for the secured bond required by this section. The letter of credit must be issued by a commercial bank acceptable to the Secretary and available to the State as a beneficiary. The letter of credit must be in a form acceptable to the Secretary, conditioned upon compliance with this Article, and in the amounts stipulated in this section. (1985, c. 114, s. 1; 1987, c. 18; 1998-95, s. 25; 2014-3, s. 9.1(c); 2018-5, s. 38.6(d); 2021-180, s. 42.13E(h).)","path":["","Article 2C. Alcoholic Beverage License and Excise Taxes.","Part 5. Administration."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-113.86.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T18:15:52Z","sha256":"5d29d5160cf84d6183d21f3db04e569443ef99511150fecfb685eef959913de1","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-105-113.85","next":"us-nc/n.c.-gen.-stat.-105-113.87"},"notice":"GroundRules: Original legal text. Not legal advice."}