Form Mf 04-7 - Motor Fuel Distributor - 5 Day Revocation Page 5
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10a form to be approved by and with a surety or sureties satisfactory
to the Department conditioned upon such applicant paying to the
State of Illinois all monies becoming due by reason of the sale or
use of motor fuel by the applicant, together with all penalties and
interest thereon. The Department shall fix the penalty of such bond
in each case taking into consideration the amount of motor fuel
expected to be sold, distributed and used by such applicant and the
penalty fixed by the Department shall be such, as in its opinion,
will protect the State of Illinois against failure to pay the amount
hereinafter provided on motor fuel sold, distributed and used, but
the amount of the penalty fixed by the Department shall not exceed
twice the monthly amount that would be collectable as a tax in the
event of a sale on all the motor fuel sold, distributed, and used by
the distributor inclusive of tax-free sales, use, or distribution. Upon
receipt of the application and bond in proper form, the Department
shall issue to the applicant a license to act as a distributor. No
person who is in default to the State for monies due under this Act
for the sale, distribution or use of motor fuel shall receive a license
to act as a distributor. ( 35 ILCS 505/3).
In Docket No. 02-ST-0031, ABC successfully argued that it already had its license, was not
currently applying for a new license, and therefore the bonding requirement of Section 3 does not
apply.
The Department, however, in its argument herein does not rely on Section 3. Rather the
Department argues that Section 11.5 of the Act is applicable. Section 11.5, entitled “New bond
of distributor, supplier, or receiver” states:
In the event that liability upon the bond filed by a distributor,
supplier, or receiver with the Department shall be discharged or
reduced, whether by judgment rendered, payment made or
otherwise, or if in the opinion of the Department the bond of any
distributor, supplier, or receiver theretofore given shall become
unsatisfactory, then the distributor, supplier, or receiver shall
forthwith, upon the written demand of the Department, file a new
bond in the same manner and form and in an amount and with
sureties satisfactory to the Department, failing which the
Department shall forthwith revoke the license of the distributor,
supplier, or receiver. 35 ILCS 505/11.5
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