State Codes and Statutes
Statutes > Rhode-island > Title-5 > Chapter-5-57 > 5-57-21SECTION 5-57-21
§ 5-57-21 Surety bond. – (a) No license shall be issued under this chapter until the applicant fileswith the licensing authority a surety bond made payable to the state in the sumof ten thousand dollars ($10,000.00) conditioned to recover against theprincipal, by reason of wrongful acts of a material nature knowingly engaged inby the licensee in the conduct of its business. No party other than thelicensing authority shall recover against the bond required by this section.The surety bond must be written by a company authorized to do business in thisstate and approved by the licensing authority with respect to its form, mannerof execution and sufficiency.
(b) Every licensee shall at all times maintain on file withthe licensing authority the surety bond, in full force and effect, required bythis chapter. Knowing and willful failure to do so shall be unlawful andpunishable as provided in § 5-57-41.
(c) A bond executed and filed with the licensing authoritypursuant to this chapter shall remain in force and effect until the surety hasterminated future liability by notice to the licensing authority thirty (30)days in advance of termination.
(d) The sum of ten thousand dollars ($10,000) in cash may bedeposited with the state in lieu of the surety bond required by this chapter.
