§443B-5  Bond.  (a)  Each collection
agency shall file and maintain with the director a bond in the penal sum of
$25,000 for the first office in this State and $15,000 for each additional
office in this State.



(b)  All bonds required by this section shall
be issued by a surety company authorized to do business in the State, and shall
run to the State.  The bond shall be conditioned that the collection agency
faithfully, promptly, and truly shall account and pay within thirty days after
the calendar month, to its clients the net proceeds due on all collections made
during the calendar month.  The bond shall be conditioned further that the
collection agency will comply with all requirements of this chapter or any
other statute now in force or hereafter enacted with respect to the duties,
conduct, obligations, and liabilities of collection agencies.



(c)  In addition to any other remedy, the
director or any person claiming to have sustained damage by reason of any
breach of the conditions of the bond may bring action on the bond for the
recovery of any damages sustained therefrom.  The liability of the surety shall
not exceed the amount of the bond issued to the collection agency for which the
bond was issued.



(d)  The bond shall be continuous in form and
remain in full force and effect unless terminated or canceled by the surety. 
Termination or cancellation shall not be effective, unless notice thereof is
delivered by the surety to the director and the collection agency at least
sixty days prior to the date of termination or cancellation.



(e)  Failure, refusal, or neglect of a
collection agency to maintain in full force and effect a bond as required by
this section shall cause the automatic suspension of the registration of the
collection agency effective as of the date of expiration, termination, or
cancellation of the bond.  The director shall not reinstate the affected
registration until satisfactory proof of bond coverage is submitted to the
director as required by this section.  Failure to effect a reinstatement of a
suspended registration within sixty days of the expiration of the requirements
of registration shall cause it to be forfeited, thereby forfeiting all
registration and biennial renewal fees.  A collection agency, within fifteen
days after receipt of the notification of the registration forfeiture, may
request an administrative hearing to review the forfeiture pursuant to chapter
91.



(f)  Upon expiration, termination, or
cancellation of the bond, the collection agency shall cease to do business as a
collection agency in this State and the collection agency shall not resume
business in this State until a bond as required in subsection (a) is submitted
to the director. [L 1987, c 191, pt of §1; am L 1990, c 246, §§6, 7]