Every FL 2 and FL 3 licensee shall furnish cash security or bank guarantee for an amount fixed by the State Government or the Excise Commissioner for due compliance of licence conditions. In case any penalty is imposed on a licensee owing to infraction of any licence condition, the penalty thus imposed shall be paid by him forthwith and in case of default the amount of penalty shall be recovered from the cash security or the bank guarantee as aforesaid. In such an eventuality, the bank guarantee or the cash security shall be indemnified to that extent by the licensee within 7 days.
