[§436M-2]  Bond.  (a)  Except as
provided in subsection (e), each alarm business shall keep in force a surety
bond in the sum of $5,000 during its first five years of operation.  The bond
shall be in effect from the date that the alarm business begins selling its
products or services and shall be continuously maintained for a period of five
years from that date.



(b)  The bond shall provide for payment, up to
the limit of the bond, to any person who is injured or aggrieved or who has
sustained loss or damage by the alarm business' violation of any provision of
this chapter or any consumer protection statute, or the business' failure to
faithfully, promptly, and truly refund all fees which were illegally or
incorrectly obtained from its customers.



(c)  The bond shall give the injured or
aggrieved party a direct and independent action on the bond for a period of one
year from the date the loss or damage occurred.



(d)  An alarm business that has completed five
or more continuous years of operation on November 8, 1986, shall not be
required to maintain a bond.  An alarm business that has completed less than
five continuous years of operation on November 8, 1986, shall maintain the bond
for the remainder of its first five years of operation.



(e)  An alarm business shall not be required to
maintain a bond if it is engaged only in selling alarm systems and does not
provide any of the other services listed in the definition of "alarm
business" in section 436M-1. [L 1986, c 134, pt of §1]



 



Revision Note



 



  "November 8, 1986" substituted for "the date
this Act takes effect".