Wash. Admin. Code § 315-04-095 - Retailer credit criteria
(1) The director
shall deny a lottery retailer license to any applicant whose credit is found to
be poor as defined in this section.
(2) The director may grant a lottery retailer
license to an applicant whose credit is rated as marginal or minimum as defined
in this section. Provided, the director shall require:
(a) Applicants whose credit is rated as
marginal as defined in this section to obtain a surety bond, security deposit,
or savings certificate under terms and conditions established by the director
prior to issuance of the license. Such surety bond must be secured from a
company licensed to do business in the state of Washington. The bond, security
deposit, or certificate shall be in the amount of three thousand five hundred
dollars unless the director determines a higher amount is required.
(b) Applicants whose credit is rated as
minimum as defined in this section may be required to obtain a surety bond or
security deposit under terms and conditions established by the director prior
to issuance of a lottery retailer license. Such surety bond must be secured
from a company licensed to do business in the state of Washington. The bond or
cash shall be in the amount of three thousand five hundred dollars unless the
director determines a higher amount is required, based on financial solvency of
the retailer.
(3) In the
event the retailer's credit is rated as poor or marginal as defined in this
section subsequent to the issuance of the license the director may:
(a) Revoke or suspend a retailer's license;
and/or
(b) Require such a retailer
to secure a surety bond from a company licensed to do business in the state of
Washington, submit a security deposit, or post a savings certificate under
terms and conditions established by the director. The surety bond, security
deposit, or savings certificate shall be in the amount of three thousand five
hundred dollars unless the director determines, based on sales volume and
financial solvency of the retailer, a higher amount is required.
(4) Credit rating is defined as
the ability to meet financial obligations when they become due. It includes
current reporting accounts payable and public financial record information
including, but not limited to, court records and other public records up to
three years prior to the lottery's credit check request, and reports from
credit bureaus or other credit reporting agencies up to two years prior to the
lottery's credit check request. A significant incident may include a lien,
judgment, bankruptcy, involuntary collection action, or any similar incident
that reflects on the individual's willingness and ability to pay creditors. A
numerical rating of "one" represents excellent credit. A numerical rating of
"nine" represents involuntary collection.
(a)
A "poor" credit rating indicates public record showing three or more
significant incidents within the past three years.
(b) A "marginal" credit rating indicates
public record information showing one or more significant incidents within the
past three years.
(c) A "minimum"
credit rating indicates the information is insufficient for
evaluation.
(d) An "acceptable"
credit rating indicates that there have been no significant incidents in the
public record within the past three years. Provided, at least three accounts
must be evaluated in order to receive an "acceptable" rating.
(5) Credit rating checks shall be
conducted as follows:
(a) Corporation business
credit ratings shall be checked. Personal credit ratings of the corporate
officers and owners of ten percent or more equity in the corporation may also
be checked.
(b) Sole proprietors
and partnership business credit ratings shall be checked. Personal credit
ratings of:
(i) The sole proprietor and his or
her spouse; or
(ii) All partners and
their spouses shall also be checked.
(c) Findings shall be applied in accordance
with subsections (1), (2), and (3) of this section.
(d) Financial solvency status for licensees
previously required to post a surety bond, security deposit, or savings
certificate under this section shall be reviewed annually by the lottery for
status improvement and possible reduction or release of the
requirement.
Notes
Statutory Authority: RCW 67.70.040(1), (3). 10-14-010, § 315-04-095, filed 6/24/10, effective 7/25/10. Statutory Authority: RCW 67.70.040(1), (3) and 67.70.040. 07-11-154, § 315-04-095, filed 5/22/07, effective 6/22/07. Statutory Authority: RCW 67.70.040. 98-20-013, § 315-04-095, filed 9/25/98, effective 10/26/98.
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