N.J. Admin. Code § 18:18-3.6

Current through Register Vol. 56, No. 24, December 18, 2024

Section 18:18-3.6 - Amount of bond required

(a) The total amount of the bond or bonds required to be filed is fixed by the Director and may be increased or reduced at any time subject to the limitations provided.

(b) In fixing the total amount of the bond or bonds required to be filed by any supplier, distributor, or terminal operator, the Director may require a bond or bonds equivalent to an amount no greater than three times the tax on the greatest amount of motor fuel handled during a monthly period of the previous 12-month period in such manner as he or she may deem proper. The Director shall take into account the applicant's prior record as a New Jersey taxpayer and all other information as may be available to him or her which would establish the applicant's financial responsibility.

1. Where the application is made by any person who has never engaged in business in this State as a supplier, distributor, or terminal operator, prior to the filing of such application, the Director, after investigation, shall fix the total amount of such bond or bonds from such information as he or she may obtain after such investigation;

2. The total amount of any bond or bonds required to be filed by any supplier can never be less than $ 25,000 or more than $ 2,000,000. The total amount of the bond or bonds required for a qualified distributor can never be less than $ 25,000 nor more than $ 1,000,000. The total amount of the bond or bonds required to be filed by any nonqualified distributor shall never be more than $ 2,000,000. The total amount of any bond or bonds required to be filed by any terminal operator can never be less than $ 25,000 nor more than $ 2,000,000.

3. The recovery on any bond or execution of any new bond does not invalidate any bond, and the revocation of any license is not deemed to affect the validity of any bond.

N.J. Admin. Code § 18:18-3.6

Amended by 49 N.J.R. 2805(c), effective 8/21/2017