§ 47-2851.21 — Bonding of licensees authorized to collect monies; exemptions.

District of Columbia § 47-2851.21

• Jurisdiction: District of Columbia
• Title 47: Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title]
• Ch. 28: General License Law.
• Subch. I-A: General Provisions.

Text

(a) The Department may require that any class or subclass of licensees licensed under the authority of this subchapter to engage in a business, trade, profession, or calling involving an express or implied agreement to collect money for others shall give bond to safeguard against financial loss those persons with whom such class or subclass of licensees may so agree.

(b) The bond required by subsection (a) of this section shall be a corporate surety bond in an amount to be fixed by the Council, but not to exceed $15,000, conditioned upon the observance by the licensee and any agent or employee of the licensee of all laws and regulations in force in the District applicable to the licensee's conduct of the business, trade, profession, or calling licensed under the authority of this subchapter for the benefit of any person who may suffer damages resulting from the violation of any such law or regulation by or on the part of such licensee, his agent, or employee.

(1) A person aggrieved by the violation of any law or regulation applicable to a licensee's conduct of a business, trade, profession, or calling involving the collection of money for others shall have, in addition to his right of action against such licensee, a right to bring suit against the surety on the bond authorized by this section, either alone or jointly with the principal thereon, and to recover in an amount not exceeding the penalty of the bond any damages sustained by reason of any act, transaction, or conduct of the licensee and any agent or employee of the licensee that is in violation of law or regulation in force in the District of Columbia relating to the business, trade, profession, or calling licensed under this subchapter ; and

(2) The provisions of § 1-301.01(b)(2) , (3) , and (5) , except for the last sentence of § 1-301.01(b)(3), shall be applicable to such bond as if it were the bond authorized by § 1-301.01(b)(1) ; provided, that nothing in this subsection shall be construed to impose upon the surety on any such bond a greater liability than the total amount thereof or the amount remaining unextinguished after any prior recovery or recoveries.

(d) This subsection shall not be applicable to persons when engaged in the regular course of any of the following professions or businesses:

(1) Attorneys-at-law;

(2) Persons regularly employed on a regular wage or salary, in the capacity of credit men or in a similar capacity, except as an independent contractor;

(3) Banks and financing and lending institutions;

(4) Common carriers;

(5) Title insurers and abstract companies while doing an escrow business;

(6) Licensed real estate brokers; or

(7) Employees of any class or subclass of licensees required to give bond under this subsection.".