50-1119. Same; bond; requirements.

50-1119

Chapter 50.--UNFAIR TRADE AND CONSUMER PROTECTION
Article 11.--CREDIT SERVICES ORGANIZATIONS

      50-1119.   Same; bond; requirements.Each applicant or registrant shall file with thecommissioner asurety bond in a form acceptable to the commissioner. The surety bond shall beissued by a surety or insurancecompany authorized to conduct business in this state, securing the applicant'sor registrant'sfaithful performance of all duties and obligations of a registrant. The suretybond shall:

      (a)   Be payable to the office of the state bank commissioner;

      (b)   provide that the bond may not be terminated without 30 days prior writtennotice to thecommissioner;

      (c)   provide that the bond shall not expire for two years after the date ofsurrender, revocation orexpiration of the applicant's or registrant's registration, whichever shallfirst occur;

      (d)   be available for:

      (1)   The recovery of expenses, fines and fees levied by the commissioner underthis act;and

      (2)   payment of losses or damages which are determined by the commissioner tohavebeen incurred by any consumer as a result of the applicant's or registrant'sfailure to comply withthe requirements of this act; and

      (e)   the amount of the bond shall be $25,000. The amount of the bond may beincreased up to $1,000,000,as further defined byrules and regulations adopted by the commissioner.

      History:   L. 2004, ch. 22, § 4; July 1.