- (a) The obligation for payment of a state tax by any person on account of any bond shall not be released until the commissioner is satisfied, either by audit or otherwise, that all tax liability of the person on account of the bond has been paid.
(b)
- (1) Because an audit will be necessary before most bonds are released, a bond shall be effective for at least one (1) year from the date of issuance before it may be released (except in the case of a business that closes) or before any other bond may be substituted in its place.
- (2) It is not the intent of this section to increase the liability of the surety in excess of the face amount of the bond regardless of the period of time the bond remains in force, nor is it the intent to affect the right of any surety on a corporate surety bond to terminate the bond at any time.