7-21-2407. Bond or security in lieu of license fee. (1) In lieu of the license fee prescribed in 7-21-2404, every transient retail merchant who files with the application required in 7-21-2406 an affidavit indicating bona fide intention to become a permanent merchant and continue in business for a period longer than 1 year shall, upon filing and approval of the bond or security provided for in this section, receive from the county treasurer a license permitting the conduct of the business for a period of 1 year.

(2) The bond must be a surety bond in the sum of $1,000 to the county treasurer.

(3) (a) The bond must be executed by a surety company licensed to do business in this state.

(b) In lieu of a bond meeting the requirements of subsection (3)(a), the bond or security may be a cash bond, irrevocable letter of credit, or other acceptable form of security of an equal amount.

(4) The bond or security must be approved by the county treasurer and conditioned upon the performance of the intention to become a permanent merchant and continue in business for a period longer than 1 year and to ensure the payment of license fees for the period the business is actually conducted if the business is not in fact a bona fide permanent business. The bond or security must be further conditioned upon the delivery of goods ordered or sold in accordance with the terms of the order or sale.

(5) The bond or security must remain in full force and effect for a period of 6 months after the expiration of the 1-year period.