§ 8-19A-10 — Financial Requirements

Alabama § 8-19A-10

• Jurisdiction: Alabama
• Title 8: Commercial Law and Consumer Protection
• Ch. 19A: Alabama Telemarketing Act

Text

(a) An application filed pursuant to Section 8-19A-5 shall be accompanied by:
(1) A bond executed by a corporate surety approved by the division and licensed to do business in this state.
(2) An irrevocable letter of credit issued for the benefit of the applicant by a bank whose deposits are insured by an agency of the federal government.
(3) A certificate of deposit in a financial institution insured by an agency of the federal government, which may be withdrawn only on the order of the division, except that the interest may accrue to the applicant.
(b) The amount of the bond, letter of credit, or certificate of deposit shall be a minimum of fifty thousand dollars ($50,000), and the bond, letter of credit, or certificate of deposit shall be conditioned upon compliance by the applicant with this chapter. The division may establish a bond of a greater amount to ensure the general welfare of the public and the interests of the telemarketing industry.
(c) The bond shall be posted with the division.
(d) The division or any governmental agency, on behalf of any injured purchaser or any purchaser himself or herself who is injured by the bankruptcy of the applicant or his or her breach of any agreement entered into in his or her capacity as a licensee, may bring and maintain an action to recover against the bond, letter of credit, or certificate of deposit.

Legislative History

(Acts 1994, No. 94-650, p. 1220, §10.)