<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".05" citation="COMAR 36.02.02.05" title_num="36" subtitle_num="02" chapter_num="02" heading="Security.">
  <paragraph num="A.">
    <text>The Director may require an applicant or retailer to obtain security of at least $5,000.</text>
  </paragraph>
  <paragraph num="B.">
    <text>The security may be:</text>
    <paragraph num="(1)">
      <text>A surety bond;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>An irrevocable letter of credit;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>A cash security deposit;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Lottery escrow deposit; or</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Any other form of security approved by the Director.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>The Agency may require security:</text>
    <paragraph num="(1)">
      <text>To protect the financial contributions to the State;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>If a retailer fails to make a payment to the Agency or has insufficient funds for a lottery transfer;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>To ensure the integrity of an applicant or the owner of an applicant and is based on a financial evaluation; and</text>
    </paragraph>
    <paragraph num="(4)">
      <text>To pay for damage, loss or misuse of supplies, equipment, or tickets.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>The Agency may use the security:</text>
    <paragraph num="(1)">
      <text>To offset amounts due from the retailer for the proceeds from the sale of tickets; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>To pay for the cost of damaged, stolen, lost or misused supplies, equipment, or tickets.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>The security shall remain in place until such time that the Director determines it may be removed.</text>
  </paragraph>
</regulation>