§ 441a.15. Slot machine license issuance bond requirement.
(a) Upon the issuance of a slot machine license, a slot machine licensee shall post an original payment bond in the amount of $1,000,000.
(b) Unless otherwise required by the Board, the payment bond must comply with the following:
(1) The payment bond must be issued by a surety company that is both licensed by the Insurance Department and assigned a credit rating within the three highest categories, without regard to numerics or other modifiers, by Moodys or Standard & Poors, or upon the discontinuance of Moodys or Standard & Poors, by another Nationally recognized rating service. Proof that the surety is licensed by the Insurance Department and has been assigned the required credit rating must accompany any payment bond submitted under this section.
(2) A slot machine licensee shall submit its proposed payment bond to the Board prior to the issuance of a slot machine license.
(3) The payment bond must state that it is payable to the Commonwealth of Pennsylvania as the obligee for immediate payment of the slot machine licensees financial obligations to the Commonwealth under the act and as security to guarantee that the slot machine licensee faithfully makes the payments, keeps its books and records, makes reports and conducts its operations in conformity with the act, this part and the rules and orders promulgated by the Board.
(4) A payment bond issued in accordance with this section will remain in full force and effect throughout the period of time that the slot machine license is in effect. If a bond is canceled and the slot machine licensee fails to file a new bond with the Bureau of Licensing in the required amount on or before the effective date of the cancellation, the slot machine licensees license will be revoked or suspended.
(5) Any notice provision in a payment bond applicable to an election by a surety to cancel a then current payment bond must provide that the Board will receive at least 30 days written notice, by registered mail or overnight courier service, of the suretys election to cancel.
(c) The Board may demand that the slot machine licensee post a new payment bond upon the occurrence of any of the following:
(1) Liability on the existing payment bond is discharged or reduced by judgment rendered, payment made or similar occurrence.
(2) The Board determines that the surety is no longer satisfactory.
(3) The slot machine licensee requests the right to post a new payment bond.
(4) The Board receives notice that the payment bond will be cancelled.
The provisions of this § 441a.15 amended under 4 Pa.C.S. § § 1202(b)(9)(23), 1205, 1206(f) and (g), 1207(1) and (2), 1208(1)(iii), 1209(b), 1212, 1213, 13A11, 13A1213A14, 13A15 and 1802 and Chapter 13.
The provisions of this § 441a.15 amended June 12, 2015, effective June 13, 2015, 45 Pa.B. 2829. Immediately preceding text appears at serial pages (367901) to (367902).
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