{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-500.35","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-500.35","heading":"Bond - Alternative proof of financial responsibility -","body":"Qualifications of bond - Financial statements and inquiry - New bond\n\nrequired - Release of existing bond.\n\nA. 1. Terminal operators shall be required to post a bond of\n\nnot less than three (3) months potential tax liability based on the\n\nnumber of gallons handled as estimated by the Commission, but in no\n\nevent shall the bond be more than Five Hundred Thousand Dollars\n\n($500,000.00).\n\n2. Exporters shall be required to post a bond of not less than\n\nthree (3) months potential tax liability based on the number of\n\ngallons handled as estimated by the Commission, but in no event\n\nshall the bond be more than One Million Dollars ($1,000,000.00).\n\n3. Transporters shall be required to post a bond of not less\n\nthan three (3) months potential tax liability based on the number of\n\ngallons handled as estimated by the Commission, but in no event\n\nshall the bond be more than One Hundred Thousand Dollars\n\n($100,000.00).\n\n4. Tank wagon importers shall be required to post a bond of not\n\nless than three (3) months potential tax liability based on the\n\nnumber of gallons handled as estimated by the Commission, but in no\n\nevent shall the bond be more than Fifty Thousand Dollars\n\n($50,000.00).\n\nB. Suppliers and bonded importers shall be required to post a\n\nbond of not less than three (3) months potential tax liability based\n\non the number of gallons handled as estimated by the Commission, but\n\nin no event shall the bond be less than One Hundred Thousand Dollars\n\n($100,000.00) nor more than Two Million Dollars ($2,000,000.00). An\n\napplicant may alternatively show proof of financial responsibility\n\nin the following amounts in lieu of posting of bond or in lieu of\n\nposting of the full amount of bond, which shall constitute evidence\n\nof financial responsibility in the absence of circumstances\n\nindicating the Commission is otherwise at risk with respect to\n\ncollection of taxes from the applicant:\n\n1. Proof of Five Million Dollars ($5,000,000.00) net worth\n\nshall constitute evidence of financial responsibility in lieu of\n\nposting of bond;\n\n2. Proof of Two Million Five Hundred Thousand Dollars\n\n($2,500,000.00) net worth shall constitute financial responsibility\n\nin lieu of posting one-half (1/2) of the bond; and\n\n3. Proof of One Million Two Hundred Fifty Thousand Dollars\n\n($1,250,000.00) net worth shall constitute financial responsibility\n\nin lieu of posting one-fourth (1/4) of the bond.\n\nC. If the applicant files a bond, the bond shall:\n\n1. Be with a surety company approved by the Commission which\n\nmay be an affiliate in the business of assuring such obligations;\n\n2. Name the applicant as the principal and the state as the\n\nobliged; and\n\n3. Be on forms prescribed by the Commission.\n\nD. The Commission may, at the reasonable discretion of the\n\nCommission, require a licensee, or an applicant, to furnish current\n\nverified, financial statements. The Commission may make independent\n\ninquiry into the financial condition of the applicant and, in any\n\ncase, is not required to accept as accurate financial statements\n\nwhich have not been certified or independently audited. If the\n\nCommission determines that a financial condition of a licensee\n\nwarrants an increase in the bond or cash deposit, the Commission may\n\nrequire the licensee to furnish an increased bond or cash deposit.\n\nE. 1. The Commission may require a licensee to file a new bond\n\nwith a satisfactory surety in the same form and amount if:\n\na. liability upon the previous bond is discharged or\n\nreduced by a judgment rendered, payment made, or\n\notherwise disposed of, or\n\nb. in the opinion of the Commission, any surety on the\n\nprevious bond becomes unsatisfactory.\n\nIf the new bond is unsatisfactory, the Commission shall cancel the\n\nlicense. If the new bond is satisfactorily furnished, the\n\nCommission shall release in writing the surety on the previous bond\ne previous bond is discharged or\n\nreduced by a judgment rendered, payment made, or\n\notherwise disposed of, or\n\nb. in the opinion of the Commission, any surety on the\n\nprevious bond becomes unsatisfactory.\n\nIf the new bond is unsatisfactory, the Commission shall cancel the\n\nlicense. If the new bond is satisfactorily furnished, the\n\nCommission shall release in writing the surety on the previous bond\n\nfrom any liability accruing after the effective date of the new\n\nbond.\n\n2. If a licensee has a cash deposit with the Commission and the\n\ndeposit is reduced by a judgment rendered, payment made, or\n\notherwise disposed of, the Commission may require the licensee to\n\nmake a new deposit equal to the amount of the reduction.\n\nF. 1. If the Commission reasonably determines that the amount\n\nof the existing bond or cash deposit is insufficient to ensure\n\npayment to the state of the tax and any penalty and interest for\n\nwhich the licensee is or may become liable, the licensee shall, upon\n\nwritten demand of the Commission, file a new bond or increase the\n\ncash deposit. The Commission shall allow the licensee at least\n\nfifteen (15) days to secure the increased bond or cash deposit.\n\n2. The new bond or cash deposit shall meet the requirements set\n\nforth in this act.\n\n3. If the new bond or cash deposit required under this section\n\nis unsatisfactory, the Commission shall cancel the license.\n\nG. 1. Sixty (60) days after making a written request for\n\nrelease to the Commission, the surety of a bond furnished by a\n\nlicensee shall be released from any liability to the state accruing\n\non the bond after the sixty-day period. The release does not affect\n\nany liability accruing before the expiration of the sixty-day\n\nperiod.\n\n2. The Commission shall promptly notify the licensee furnishing\n\nthe bond that a release has been requested. Unless the licensee\n\nobtains a new bond that meets the requirements of this act and files\n\nwith the Commission the new bond within the sixty-day period, the\n\nCommission shall cancel the license.\n\n3. Sixty (60) days after making a written request for release\n\nto the Commission, the cash deposit provided by a licensee shall be\n\ncanceled as security for any obligation accruing after the\n\nexpiration of the sixty-day period. However, the Commission may\n\nretain all or part of the cash deposit for up to three (3) years and\n\none (1) day as security for any obligations accruing before the\n\neffective date of the cancellation. Any part of the deposit not\n\nretained by the Commission shall be released to the licensee.\n\nBefore the expiration of the sixty-day period, the licensee shall\n\nprovide the Commission with a bond that satisfies the requirements\n\nof this act or the Commission shall cancel the license.\n\n4. Any licensee who has filed a bond or other security under\n\nthis act is entitled, on request, to have the Commission return,\n\nrefund, or release the bond or security if, in the judgment of the\n\nCommission, the licensee has continuously complied with the\n\nprovisions of this act for the previous three (3) consecutive years.\n\nHowever, if the Commission determines that the revenues of the state\n\nwould be jeopardized by the return, refund or release of bond or\n\nsecurity, the Commission may elect to retain the bond or security,\n\nor having released such, may reimpose a requirement for bond or\n\nsecurity to protect the revenues of this state. The decision of the\n\nCommission to not release a bond or security may be reviewed, after\n\napplication by the licensee, pursuant to the Administrative\n\nProcedures Act.\n\nH. In the event any applicant for a license applies for more\n\nthan one license pursuant to this act, the applicant shall not be\n\nrequired to post a bond for each license, but shall be required to\n\npost the bond for the license which requires the greatest amount of\n\nbond.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"42bfc65f598ffdb0426bb8460389fc0640945844976e3c671b72ab9eb3aec790","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-500.34","next":"us-ok/okla.-stat.-tit.-68-68-500.36"},"notice":"GroundRules: Original legal text. Not legal advice."}