(1)  The following provisions apply to a registration bond:

(a) the registration bond continues in force for –

(i) in the case of a registration bond given under section 59 of the Act, the whole period of the guarantor's registration and the 6-month period immediately following that period of registration; and

(ii) in the case of a registration bond given under section 74 of the Act, the whole period of the guarantor's telephone betting endorsement and the 6-month period immediately following the expiration, cancellation, or surrender, of that endorsement;

(b) the Director may enforce the registration bond if the Director is of the opinion that the guarantor has defaulted in the payment of one or more of the following while the bond is in force:

(i) any commission or other money payable by the guarantor to the Director in observance of, or compliance with, the provisions of the Act;

(ii) any money payable by the guarantor in observance of, or compliance with, the provisions of the Act;

(iii) a bet payable by that guarantor;

(c) if the Director decides to enforce the registration bond, the security amount –

(i) is recoverable notwithstanding that it relates to betting; and

(ii) is not to be taken for any purpose to be a penalty but is to be taken to be liquidated damages; and

(iii) is accordingly recoverable in full as a debt due to the Crown unless every condition on which the registration bond is defeasible is shown to have been performed.

(2)  From the sum of the security amount recovered, received or collected under a registration bond, the Director is to –

(a) deduct the costs incurred by or on behalf of the Director in effecting that recovery, receipt or collection; and

(b) apply the balance –

(i) firstly, in paying any commission or other money that is payable to the Director by the guarantor in observance of, or compliance with, the provisions of the Act; and

(ii) secondly, in paying to bettors the amounts that are, in the opinion of the Director, due to them in respect of bets placed with the guarantor.

(3)  If the balance referred to in subregulation (2)(b) is sufficient to meet all of the payments required to be made under subregulation (2)(b)(i) and (ii) , the amount remaining, if any, after all those payments have been made is to be paid to the guarantor or surety from whom the sum was recovered, received or collected.

(4)  If the amount available for the purposes of subregulation (2)(b)(ii) is insufficient to meet all of the payments required to be made to bettors under that subregulation, the Director may make a pro rata distribution among those bettors of the remaining amount available.