State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_93A > GS_93A-36

§93A‑36.  Execution of bond required; applicability to branch schools;actions upon bond.

(a)        Before theCommission shall issue a license the applicant shall execute a bond in the sumof five thousand dollars ($5,000), payable to the State of North Carolina,signed by a solvent guaranty company authorized to do business in the State ofNorth Carolina, and conditioned that the principal in said bond will carry outand comply with each and every contract or agreement, written or verbal, madeand entered into by the applicant's school acting by and through its officersand agents with any student who desires to enter such school and to take anycourses offered therein and that said principal will refund to such studentsall amounts collected in tuition and fees in case of failure on the part of theparty obtaining a license from the Commission to open and operate a privatereal estate school or to provide the instruction agreed to or contracted for.Such bond shall be required for each school for which a license is required andshall be first approved by the Commission and then filed with the clerk ofsuperior court of the county in which the school is located, to be recorded bysuch clerk in a book provided for that purpose. A separate bond shall not berequired for each branch of a licensed school.

(b)        In any and allcases where the party licensed by the Commission fails to fulfill itsobligations under any contract or agreement, written or verbal, made andentered into with any student, then the State of North Carolina, upon therelation of the student(s) entering into said contract or agreement, shall havea cause of action against the principal and surety on the bond herein requiredfor the full amount of payments made to such party, plus court costs and six percent(6%) interest from the date of payment of said amount. Such suits shall bebrought in Wake County Superior Court within one year of the alleged default. (1979,2nd Sess., c. 1193, s. 1; 1983, c. 81, s. 2; 1999‑229, s. 12.)