9-2211. Bonding requirements; minimum net worth requirements.
9-2211
9-2211. Bonding requirements; minimum net worth
requirements.
(a) Each applicant or licensee who maintains a bona
fide office shall file with the commissioner a surety bond in the amount
of
not less than $50,000, in a form acceptable
to the commissioner,
issued by an insurance company authorized to
conduct
business in this state, securing the applicant's or
licensee's faithful
performance of all duties and obligations of a
licensee meeting the following
requirements:
(1) The bond shall be payable to
the office of the state
bank commissioner
and shall be in an amount established by the commissioner by rules and
regulations adopted pursuant to K.S.A. 9-2209, and amendments thereto;
(2) the terms of the bond shall provide that
it may not be terminated without 30 days prior written notice to the
commissioner, provided that such termination shall not affect the surety's
liability for
violations of the Kansas mortgage business act occurring prior to the effective
date of cancellation and principal and surety shall be and remain liable for a
period of two years from the date of any action or inaction of principal that
gives rise to a claim under the bond; and
(3) the bond shall
be available for the
recovery of expenses, fines and fees levied by the commissioner under this act,
and for losses or damages which are determined by the commissioner to have
been incurred by any borrower or consumer as a
result of the applicant's or licensee's failure to
comply with the
requirements of this act.
(b) Each applicant or licensee who does not maintain
a bona fide office
shall comply with both of the following:
(1) File with the commissioner a surety bond
in the amount of not less than $100,000, in a form acceptable to the
commissioner, issued by
an insurance company authorized to conduct
business in
this state, securing the applicant's or licensee's
faithful performance of
all duties and obligations of a licensee meeting the
following requirements:
(A) The bond shall be payable to the office of the
state
bank commissioner and shall be in an amount established by the commissioner
by
rules and regulations adopted pursuant to K.S.A. 9-2209, and amendments
thereto;
(B) the terms of the bond shall
provide that
it may not be terminated without 30 days prior written notice to the
commissioner; and
(C) the bond shall be available for
the
recovery of expenses, fines and fees levied by the commissioner under this act,
and for losses or damages which are determined by the commissioner to have
been incurred by any borrower or consumer as a
result of the applicant's or licensee's failure to
comply with the
requirements of this act;
(2) Submit evidence that establishes, to the commissioner's satisfaction,
that the applicant or licensee shall at all times
maintain a minimum net
worth of $50,000. Evidence of net worth shall include the submission of a
balance sheet accompanied by a written statement by an independent certified
public accountant attesting that the balance sheet has been reviewed in
accordance with generally accepted accounting principles.
History: L. 1999, ch. 45, § 10;
L. 2001, ch. 88, § 11;
L. 2005, ch. 144, § 5;
L. 2009, ch. 29, § 10; July 1.