Bond Requirements

Bonds shall be required in the following situations:

Ÿ When a previous fuel licensee is reapplying for a permanent fuel license and has two or more outstanding billings due for periods within the three years previous to the date of application for a new permanent license;

Ÿ When a previous fuel licensee is reapplying for a new permanent fuel license and has failed to file two or more reports for a calendar year within the three years previous to the date of application for new permanent license;

Ÿ When a previous permanent fuel licensee is reapplying for a new permanent license and has filed reports late for two or more reporting periods for a calendar year within the three years previous to date of application for a new permanent fuel license;

Ÿ When an audit indicates problems severe enough that a bond is required to protect the interests of member jurisdictions.

Bonds required shall be in guaranteed funds, payable to the State of Iowa, in the minimum of $500 or the equivalent to at least twice the estimated average tax liability for the reporting period which the licensee will be required to file a tax return, whichever is greater.

A copy of such bond shall be filed with the Office of Motor Carrier Services before a new license shall be issued. This office shall be notified of bond cancellation 30 days before the cancellation is effective.