17 AAC 45.336. Registration deposit

(a) The department may require that a person register to bid at an auction only after submitting at the bidder registration a registration deposit in an amount and form the department determines appropriate to ensure that the successful bidder executes the lease, permit, or concession. The department will specify in the auction documents the deposit amount, the required form of deposit and how the deposit will be applied. A required deposit amount may not exceed the department's estimate of rents and fees payable in the first year under the lease, permit, or concession to be awarded, plus twenty-five percent of any minimum bonus bid required in the auction documents.

(b) If the successful bidder does not within the required time sign the lease, permit, concession, or any other required document or perform any other requirement of the auction documents, the bidder forfeits the deposit as liquidated damages for the lost benefit to and related additional costs incurred by the department. However, the bidder does not forfeit the deposit if the department finds that the bidder's failure is excused by extraordinary circumstances beyond the bidder's control.

(c) Subject to (d) of this section, the department will return the deposit of any unsuccessful bidder only after the lease, permit, or concession has been awarded and executed by the department. The department will return all deposits if the department rejects all bids or cancels the auction.

(d) After auction and prior to award and execution of the lease, permit, or concession, the department will return the registration deposit of a bidder who is not the apparent high bidder if the bidder submits to the department a written withdrawal of the bidder's bid from further consideration and the department determines that withdrawal of the bid and return of the deposit before award and execution of the lease, permit, or concession is in the best interest of the state.

(e) Unless the department determines otherwise in writing, withdrawal of a bid and return of a deposit under (d) of this section is presumed in the best interest of the state if those actions are requested to enable the bidder to bid or propose on a different lease, permit, or concession while the department is holding the deposit that the bidder has requested be returned. In that case, the withdrawal becomes effective upon the department's receipt of the bidder's new bid or proposal, and the department will apply the deposit that the person submitted in support of the withdrawn bid toward the deposit requirement for the new bid or proposal.

History: Eff. 3/28/2002, Register 161

Authority: AS 02.15.020

AS 02.15.060

AS 02.15.070

AS 02.15.090

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