.05 Security.

A. The Director may require an applicant or retailer to obtain security of at least $5,000.

B. The security may be:

(1) A surety bond;

(2) An irrevocable letter of credit;

(3) A cash security deposit;

(4) Lottery escrow deposit; or

(5) Any other form of security approved by the Director.

C. The Agency may require security:

(1) To protect the financial contributions to the State;

(2) If a retailer fails to make a payment to the Agency or has insufficient funds for a lottery transfer;

(3) To ensure the integrity of an applicant or the owner of an applicant and is based on a financial evaluation; and

(4) To pay for damage, loss or misuse of supplies, equipment, or tickets.

D. The Agency may use the security:

(1) To offset amounts due from the retailer for the proceeds from the sale of tickets; or

(2) To pay for the cost of damaged, stolen, lost or misused supplies, equipment, or tickets.

E. The security shall remain in place until such time that the Director determines it may be removed.