Vermont § 8916 - Bonds

§ 8916. Bonds

• (a) When the Commissioner deems it necessary to protect the revenues to be obtained under
  this chapter, he or she may require a rental company to file with him or her a bond
  issued by a surety company authorized to transact business in this State and approved
  by the Commissioner of Financial Regulation of this State as to solvency and responsibility,
  in an amount fixed by the Commissioner, but not to exceed the total potential liability
  of such person, to secure the payment of any tax or penalties or interest due or that
  may become due from a rental company under this chapter. In the event that the Commissioner
  determines that such person is to file a bond, he or she shall give notice to him
  or her to that effect, specifying the amount of the bond required. That person shall
  file a bond within 15 days after the giving of the notice unless within those 15 days
  he or she shall request in writing a hearing before the Commissioner at which the
  necessity, propriety, and amount of the bond shall be determined by the Commissioner.
  The determination shall be final and shall be complied with within 15 days after the
  giving of notice thereof. In lieu of a bond, securities approved by the Commissioner,
  or cash in such amount as he or she may prescribe may be deposited, which shall be
  kept in the custody of the State Treasurer who may at any time upon instructions from
  the Commissioner without notice to the depositor apply them to any tax or interest
  or penalties due, and for that purpose the securities may be sold by him or her at
  public or private sale without notice to the depositor thereof. (b) The total amount of the bond required of a rental company may be fixed by the Commissioner
  and may be increased or decreased by him or her at any time subject to the limitations
  imposed by this section. (c) If the liability upon a bond filed by a rental company with the Commissioner becomes
  discharged or reduced, whether by judgment rendered, payment made, or otherwise, or
  if in the opinion of the Commissioner any surety on a bond has become unsatisfactory
  or unacceptable, the Commissioner shall require the rental company to file a new bond
  with satisfactory sureties in the same amount and, upon failure to do so, the Commissioner
  shall forthwith suspend the right to operate a motor vehicle in this State. (d) If a rental company fails or refuses to increase the amount of a bond or file a bond
  as required by the Commissioner within 15 days after notice mailed to him or her,
  his or her right to operate a motor vehicle in this State shall be suspended forthwith. (Added 1983, No. 251 (Adj. Sess.), § 10, eff. Jan. 1, 1985; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)