State Codes and Statutes

Statutes > Utah > Title-13 > Chapter-42 > 13-42-113

13-42-113. Bond required.
(1) Except as otherwise provided in Section 13-42-114, a provider that is required to beregistered under this chapter shall file a surety bond with the administrator, which shall:
(a) be in effect during the period of registration and for two years after the providerceases providing debt-management services to individuals in this state; and
(b) run to this state for the benefit of this state and of individuals who reside in this statewhen they agree to receive debt-management services from the provider, as their interests mayappear.
(2) Subject to adjustment of the dollar amount pursuant to Subsection 13-42-132(6), asurety bond filed pursuant to Subsection (1) shall:
(a) be in the amount of $100,000;
(b) be issued by a bonding, surety, or insurance company authorized to do business inthis state and rated at least A by a nationally recognized rating organization; and
(c) have payment conditioned upon noncompliance of the provider or its agent with thischapter.
(3) If the principal amount of a surety bond is reduced by payment of a claim or ajudgment, the provider shall immediately notify the administrator and, within 30 days after noticeby the administrator, file a new or additional surety bond in an amount to comply with the$100,000 requirement. If for any reason a surety terminates a bond, the provider shallimmediately file a new surety bond in the amount of $100,000.
(4) The administrator or an individual may obtain satisfaction out of the surety bondprocured pursuant to this section if:
(a) the administrator assesses expenses under Subsection 13-42-132(2)(a), issues a finalorder under Subsection 13-42-133(1)(b), or recovers a final judgment under Subsection13-42-133(1)(d) or (e) or Subsection 13-42-133(4); or
(b) an individual recovers a final judgment pursuant to Subsection 13-42-135(1),Subsection 13-42-135(2), or Subsection 13-42-135(3)(a), (b), or (d).
(5) If claims against a surety bond exceed or are reasonably expected to exceed theamount of the bond, the administrator, on the initiative of the administrator or on petition of thesurety, shall, unless the proceeds are adequate to pay all costs, judgments, and claims, distributethe proceeds in the following order:
(a) to satisfaction of a final order or judgment under Subsection 13-42-133(1)(a), (d), or(e) or Subsection 13-42-133(4);
(b) to final judgments recovered by individuals pursuant to Subsection 13-42-135(1),Subsection 13-42-135(2), or Subsection 13-42-135(3)(a), (b) or (d), pro rata;
(c) to claims of individuals established to the satisfaction of the administrator, pro rata;and
(d) if a final order or judgment is issued under Subsection 13-42-133(1), to the expensescharged pursuant to Subsection 13-42-132(2)(a).

Amended by Chapter 378, 2010 General Session