9C.4 - BOND REQUIRED -- APPLICABILITY -- FORFEITURE.
9C.4 BOND REQUIRED -- APPLICABILITY -- FORFEITURE.
At the time of filing said application and as a part thereof, the
applicant shall file with the secretary of state a bond, with
sureties to be approved by the secretary of state, in a penal sum two
times the value of the goods, wares or merchandise to be sold or
offered for sale or the average inventory to be carried by such
transient merchant engaged in or conducting an intermittent or
temporary business as the case may be as shown by the application,
running to the state of Iowa, for the use and benefit of any
purchaser of any merchandise from such transient merchant who might
have a cause of action of any nature arising from or out of such sale
against the applicant or the owner of such merchandise if other than
the applicant; the bond to be further conditioned on the payment by
the applicant of all taxes that may be payable by, or due from, the
applicant to the state of Iowa or any subdivision thereof, the bond
to be further conditioned for the payment of any fines that may be
assessed by any court against the applicant for violation of the
provision of this chapter, and further conditioned for the payment
and satisfaction of any and all causes of action against the
applicant commenced within one year from the date of sale thereof,
and arising from such sale, provided, however, that the aggregate
liability of the surety for all such taxes, fines and causes of
action shall in no event exceed the principal sum of such bond.
In such bond the applicant and surety shall appoint the secretary
of state, the agent of the applicant and surety for the service of
process. In the event of such service, the agent upon whom such
service is made shall within five days after the date of service,
mail by ordinary mail a true copy of the process served upon the
agent to each party for whom the agent is served, addressed to the
last known address of such party. Failure to so mail said copy shall
not, however, affect the jurisdiction of the court.
Such bond shall contain the consent of the applicant and surety
that the district court of the county in which the plaintiff may
reside or Polk county, Iowa, shall have jurisdiction of all actions
against the applicant or surety, or both, arising out of the sale.
The state of Iowa, or any subdivision thereof, or any person having a
cause of action against the applicant or surety arising out of said
sale may join the applicant and surety on such bond in the same
action, or may in such action sue either the applicant or the surety
alone.
The requirements of this section also apply to transient merchants
who are licensed in accordance with an ordinance of a city in the
state of Iowa.
Notwithstanding the above provisions, the bond provided for in
this section shall be forfeited to the state of Iowa upon the
applicant's failure to pay the total of all taxes payable by or due
from the applicant to the state which taxes are administered by the
department of revenue. The department shall adopt administrative
rules for the collection of the forfeiture. Notice shall be provided
to the surety and to the applicant. Notice to the applicant shall be
mailed to the applicant's last known address. The applicant or the
surety shall have the opportunity to apply to the director of revenue
for a hearing within thirty days after the giving of such notice.
Upon the failure to timely request a hearing, the bond shall be
forfeited. If, after the hearing upon timely request, the director
finds that the applicant has failed to pay the total of all taxes
payable and the bond is forfeited, the director shall order the bond
forfeited. The amount of the forfeiture shall be the amount of taxes
payable or the amount of the bond. The surety shall not have
standing to contest the amount of any taxes payable. For purposes of
this section "taxes payable" means all tax, penalties, interest,
and fees that the department has previously determined to be due by
assessment or in an appeal of an assessment. Section History: Early Form
[C58, 62, 66, 71, 73, 75, 77, 79, 81, § 81A.4] Section History: Recent Form
87 Acts, ch 60, § 1
C93, § 9C.4
2003 Acts, ch 145, § 286