13-42-114 - Bond required -- Substitute.
13-42-114. Bond required -- Substitute.
(1) Instead of the surety bond required by Section 13-42-113, a provider may deliver tothe administrator, in the amount required by Subsection 13-42-113(2), and, except as otherwiseprovided in Subsection (1)(c)(i), payable or available to this state and to individuals who residein this state when they agree to receive debt-management services from the provider, as theirinterests may appear, if the provider or its agent does not comply with this chapter:
(a) a certificate of insurance:
(i) issued by an insurance company authorized to do business in this state and rated atleast A or equivalent by a nationally recognized rating organization approved by theadministrator; and
(ii) with no deductible, or if the provider supplies a bond in the amount of $5,000, adeductible not exceeding $5,000;
(b) a certificate of deposit issued or confirmed by a bank approved by the administrator,payable upon presentation of a certificate by the administrator stating that the provider or itsagent has not complied with this chapter; or
(c) with the approval of the administrator:
(i) an irrevocable letter of credit, issued or confirmed by a bank approved by theadministrator, payable upon presentation of a certificate by the administrator stating that theprovider or its agent has not complied with this chapter; or
(ii) bonds or other obligations of the United States or guaranteed by the United States orbonds or other obligations of this state or a political subdivision of this state, to be deposited andmaintained with a bank approved by the administrator for this purpose.
(2) If a provider furnishes a substitute pursuant to Subsection (1), the provisions ofSubsections 13-42-113(1), (3), (4), and (5) apply to the substitute.
Amended by Chapter 229, 2009 General Session