Section R. 432.1310 - Casino license bondRule 310.
(1) The holder of a certificate of suitability shall post a bond in the sum of $1,000,000.00 payable to: "State of Michigan," under the requirements of section 8(a) of the act, before a casino license will be issued to the holder.(2) Unless otherwise required by the board, a casino license bond shall be in compliance with all of the following additional requirements:(a) A surety bond must be with a surety company that is approved by the board and guaranteed by a guarantor that is approved by the board.(b) An irrevocable line of credit issued as security for a bond must also be approved by the board.(c) If the holder of the certificate of suitability plans to post a surety bond, negotiable securities, or irrevocable letter of credit, then the holder shall submit its bond proposal not less than 45 days before the time the bond is to be posted to allow the board sufficient time to investigate and approve the proposed bond and the surety, guarantor, or banking institution that issued the bond and irrevocable letter of credit or negotiable securities guaranteeing payment of the bond.(d) The bond shall be payable to the state of Michigan as obligee for use in payment of the casino licensee's financial obligations to the state and as security to guarantee that the licensee faithfully makes the payments, keeps its books and records, makes reports, and conducts its casino gambling operation in conformity with the act and these rules.(e) The bond shall provide that it may be exercised by the state if the licensee fails to substantially comply with its obligations under the act, and these rules.(f) The bond shall state that it shall run continuously and remain in full force and effect throughout the period during which the license is held, unless the surety cancels the bond by giving the board not less than 30 days' written notice.(3) The board may demand that a casino licensee post a new bond that complies with the act and subrules (1) and (2) of this rule if any of the following provisions apply: (a) Liability on the existing bond is discharged or reduced by judgment rendered, payment made, or other situation.(b) The board determines that any surety, guarantor, irrevocable letter of credit, or other negotiable securities on the old bond are no longer satisfactory and approved.(c) The board determines that the banking institution that issued the irrevocable letter of credit or other negotiable securities on the old bond is no longer satisfactory or approved.(d) The licensee requests to post a new bond.(e) The board receives notice that the bond will be canceled.Mich. Admin. Code R. 432.1310