Florida Administrative Code › 20 - DEPARTMENT OF CITRUS › 20 - Departmental › Chapter 20-9 - PAYMENT OF EXCISE TAXES › Section 20-9.008 - Utilization of Certificate of Deposit or Letter of Credit in Lieu of Bond

Current through Reg. 50, No. 138; July 16, 2024
(1) A handler wishing to post a certificate
				of deposit in lieu of a cash or surety bond to guarantee the payment of citrus
				assessments to the Department of Citrus, shall purchase such certificate in an
				amount to be determined according to the criteria as set forth in subsection
				 20-9.005(2),
				F.A.C. The certificate of deposit shall have the same face principal value as
				if a surety bond had been posted.
(2) Any certificate of deposit offered under
				this provision shall be issued either by a national or Florida chartered bank
				or savings and loan association and the face amount of such certificate shall
				be fully insured by the appropriate federal insurance corporation.
(3) The certificate of deposit shall be
				issued in the name of the licensed handler accompanied by an executed
				assignment of such handler's interest in the certificate in favor of the State
				of Florida, Department of Citrus on the Assignment form - CIT/REV/07 7-11-07,
				incorporated by reference in subsection
				 20-100.004(38),
				F.A.C.,
http://www.flrules.org/Gateway/reference.asp?No=Ref-01953
,
				and a letter from the issuing bank acknowledging the assignment of the
				certificate of deposit to the State of Florida, Department of Citrus. Such
				assignment shall be irrevocable for the period from the beginning of the citrus
				shipping season for which the certificate is submitted or from the date of
				submission of the certificate of deposit if occurring after commencement of the
				season, through September 1 of the following citrus season. The certificate of
				deposit may be reassigned by the Department of Citrus to such handler providing
				that all citrus assessments due and payable to the Department of Citrus by such
				handler during the term covered by the certificate shall have been paid to the
				Department in full. The conditions of the assignment from the handler to the
				Department of Citrus shall be that if the handler shall well and truly comply
				with the provisions of Florida law and Department of Citrus rules regarding the
				payment of citrus assessments, then the certificate of deposit subject to such
				assignment shall be reassigned by the Department of Citrus to the handler,
				otherwise said assignment to remain in full force and effect.
(4) All interest accruing on such certificate
				of deposit shall be paid directly to the handler and the handler shall register
				his federal employer tax number or other federal tax identification number with
				the financial institution issuing such certificate.
(5) A handler may reassign existing
				certificates of deposit to the Department of Citrus for subsequent years,
				provided all assessment liabilities for the current season have been satisfied.
				A separate certificate of deposit for the required amount of the bond otherwise
				called for must be assigned to the Department of Citrus for each citrus
				shipping season for which the handler desires to utilize this alternate
				procedure.
(6) A handler wishing to
				post a Letter of Credit in lieu of a cash or surety bond to guarantee the
				payment of citrus assessments to the Department of Citrus shall provide a good
				and sufficient letter of credit from a United States financial institution and
				in an amount to be determined according the criteria set forth in subsection
				 20-9.005(2),
				F.A.C. The letter of credit shall have the same face principal value as if a
				surety bond had been posted and a new letter of credit shall be posted for each
				current season.
Rulemaking Authority
					 601.10(1),
					 601.15(1) FS.
					 Law Implemented 601.15(6)(b)
					 FS.
New 2-1-81, Formerly 20-9.08, Amended 11-27-01, 11-28-12,
					 11-26-20.