SECTION 429:10-1-11. Banking, deposits and payment requirements

(a)   The Act requires each retailer to establish a separate bank account in an institution insured by the Federal Deposit Insurance Corporation (FDIC) and to provide the OLC with authorization to transfer lottery proceeds from this account using Electronic Funds Transfer (EFT). All funds due the OLC shall be considered State funds until paid to the OLC and are to be deposited into this separate bank account no later than the close of the next banking day after the date of their collection by the retailer.

(b)   The OLC will provide notification of the amount of the accounting period EFT by way of an invoice to the retailer. Lottery proceeds due the OLC, as calculated on the invoice for an accounting period, will be transferred from the retailer bank account to the OLC on the Tuesday morning following the accounting period. When the Monday immediately preceding a scheduled Tuesday EFT transfer is a legal holiday, the transfer will occur on Wednesday morning.

(c)   On the EFT funds transfer day (Tuesday morning), if all net lottery proceeds as detailed on the retailer invoice are not in the separate retailer bank account and this results in a non-sufficient funds (NSF) sweep, the retailer will be deemed to be in default. OLC will immediately contact the retailer and:

(1)   If it is a first NSF default, require the retailer to deposit the required funds into the EFT lottery account to enable a wire transfer to be completed that day. A $25.00 NSF fee will be charged as an adjustment to the retailer account.

(2)   If a second NSF default occurs within a 6 month period, OLC may immediately suspend the retailer's terminal operation until the required funds are brought to OLC or received by an OLC representative. A $25.00 NSF fee will be charged as an adjustment to the retailer account.

(3)   If a third NSF default occurs within the same 6 month period provided in paragraph 2 of this subsection, the OLC may terminate the retailer contract immediately and commence collection proceedings on all money due to OLC.

[Source: Added at 23 Ok Reg 174, eff 10-10-05 (emergency); Added at 23 Ok Reg 2778, eff 6-25-06]