(b)

1. (1) A retailer is required to post an appropriate bond as determined by the office.
2. (2) All retailers shall be bonded through the office’s Self-Bond Program, and shall pay a one-hundred-dollar bond fee for each retailer location.
3. (3) The bond shall be renewed annually for each retailer location.

(c)

1. (1) The Director of the Office of the Arkansas Lottery may increase or decrease the annual bond fee as warranted by the annual amount of defaulted obligations.
2. (2) In any event, the bond fee shall not be less than seventy-five dollars ($75.00) or more than two hundred dollars ($200).

(d)

1. (1) A retailer’s failure to abide by its financial obligations to the office per the retailer contract shall constitute a default.
2. (2) The office will pay a retailer’s defaulted obligation from the pool of self-bond fees.
3. (3) Upon said payment, retailer shall be obligated to reimburse the office for the full amount of the defaulted obligation immediately.
4. (4) The office may institute any and all legal actions authorized by law to collect a defaulted obligation from a retailer.

(e)

1. (1) The office may suspend a retailer’s authority to sell lottery tickets for any period in which a retailer does not pay the bond required under this section or a defaulted obligation.
2. (2) A retailer’s authority to sell lottery tickets may be reinstated upon payment of an outstanding bond or defaulted obligation.
3. (3) A retailer’s failure to pay the bond or defaulted obligation may result in the termination of its license.
4. (4) The office may suspend a retailer’s authority to sell lottery tickets for any period in which a retailer does not pay the bond required under this section or a defaulted obligation.
5. (5) A retailer’s authority to sell lottery tickets may be reinstated upon payment of an outstanding bond or defaulted obligation.
6. (6) A retailer’s failure to pay the bond or defaulted obligation may result in the termination of its license.

(f)

1. (1) At the end of each fiscal year, the director may authorize inclusion of all or a portion of the unused bond fees in the revenues of the office for the fiscal year.
2. (2) The director may also allow a retailer to deposit and maintain with the office securities that are interest bearing or accruing.
3. (3) The securities shall be held in trust in the name of the office.

4. (4) Securities eligible are limited to:

   1. (A) Certificates of deposit in an amount fully insured by the Federal Deposit Insurance Corporation issued by solvent banks or savings associations organized and existing under the laws of this state or under the laws of the United States;
   2. (B) United States Government bonds, notes, and bills for which the full faith and credit of the United States Government is pledged for the payment of principal and interest; or
   3. (C) Federal agency securities by an agency or instrumentality of the United States Government.