Section 370-300-304 - FINANCIAL SECURITY304.01 The Division may require security on bids or proposals. When security is required, the ITB or RFP may contain the types and amounts of security required, and the allowable forms for the security.304.02 The following types of security may be required: bid or proposal security; litigation security; performance bond; or fidelity bond. A performance bond shall be required for a major procurement. 304.02A The amount for any performance bond will be the full amount estimated to be paid annually under the contract.304.02B When litigation security is required, it will be retained for a period of one year, or such other period as specified in the RFP. The security may be released earlier if the bidder submits a covenant not to sue that is approved by the Division.304.03 When required, a performance bond must be a bond issued by a surety licensed to do business in Nebraska on a form approved by the Division. For any other security required, the security may also be a certified or cashier's check payable to the Division, letter of credit payable to the Division, or any other form specified by the Division. Any certified or cashier's check, or letter of credit must be issued by a bank which is a member of the Federal Reserve System which has a long-term debt rating by a recognized rating agency and is financially rated A- or better. Any letter of credit executed under this subdivision must also provide that: 304.03A Nothing more than a demand for payment is necessary for payment and the letter of credit is not conditional on the delivery of any other document or materials, reimbursement to the bank, the bank's ability to perfect any lien or security interest, or the terms of any other document, agreement, or contract; and304.03B The letter of credit is irrevocable and cannot be modified or revoked without the consent of the Division.304.04 A fidelity bond, when required, must cover any loss to the State of Nebraska or the Division due to any fraudulent or dishonest act on the part of the Lottery Vendor, any of its employees and agents, and any subcontractor and its employees and agents.304.05 Any required security will remain in effect until at least thirty (30) days after notice by the surety or issuer of the cancellation of the security.304.06 A Lottery Vendor may also be required to provide and carry various types of insurance.370 Neb. Admin. Code, ch. 300, § 304