A. Before any sanctioning permit is issued to any promoter to conduct or hold a professional boxing contest or professional exhibition, the applicant shall file with the Oklahoma State Athletic Commission a security in the form of a bond, cash, certificate of deposit, or other securities acceptable to the Commission, payable to the State of Oklahoma in an amount determined by the Commission, executed by the applicant and a surety company or companies authorized to do business in this state, and conditioned upon the faithful performance by the promoter, which shall include but not be limited to the cancellation of a professional boxing contest or professional exhibition without good cause as determined by the Commission once the professional boxing contest or professional exhibition has been approved by the Commission.

B. The security required under this section shall guarantee the payment of all taxes, fees, fines and other monies due and payable pursuant to the provisions of the Oklahoma State Athletic Commission Act and the rules promulgated by the Commission, including, but not limited to, the payment of purses to the competitors, any contributions for required insurance, pensions, disability and medical examinations, the repayment to ticket holders of purchased tickets, the payment of fees to ring officials and physicians, and, in the event of the cancellation of a professional boxing contest or professional exhibition approved by the Commission without good cause, an amount determined by the Commission.

C. After issuance of a sanctioning permit to a promoter, the Commission may modify the amount of security required to ensure adequate and sufficient coverage for payments of taxes, fees, fines, purses, and other monies due and payable pursuant to the provisions of this section. Failure of any promoter to obtain the modified security required pursuant to this subsection within such period of time as the Commission may prescribe, shall be grounds for revocation of the sanctioning permit of such promoter.

D. All proceeds of securities collected pursuant to the provisions of this section shall be placed to the credit of the Oklahoma State Athletic Commission Revolving Fund.