Iowa § 523G.6 Evidence of financial responsibility

Iowa Statutes

§ 523G.6 — Evidence of financial responsibility

Iowa § 523G.6

Title XIIICOMMERCE

Ch. 523GINVENTION DEVELOPMENT SERVICES

This text of Iowa § 523G.6 (Evidence of financial responsibility) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 523G.6 (2026).

Text

1.An invention developer shall maintain as security evidence of financial responsibility as approved by the commissioner. The security shall be either a bond or cash deposit in an amount which is equal to the greater of either ten percent of the invention developer’s gross income from the invention development business in this state during the invention developer’s preceding fiscal year, or twenty-five thousand dollars. The commissioner shall approve the security before the invention developer renders or offers to render invention development services in this state. The invention developer shall have ninety days beginning onthefirstdayoftheinventiondeveloper’snewfiscalyeartochangethesecurityasnecessary to conform to the requirements of this subsection.

2.A surety who issues a bond must b

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1. An invention developer shall maintain as security evidence of financial responsibility
as approved by the commissioner. The security shall be either a bond or cash deposit in
an amount which is equal to the greater of either ten percent of the invention developer’s
gross income from the invention development business in this state during the invention
developer’s preceding fiscal year, or twenty-five thousand dollars. The commissioner shall
approve the security before the invention developer renders or offers to render invention
development services in this state. The invention developer shall have ninety days beginning
onthefirstdayoftheinventiondeveloper’snewfiscalyeartochangethesecurityasnecessary
to conform to the requirements of this subsection.
2. A surety who issues a bond must be approved by the commissioner. A copy of the
bond shall be filed in a manner and according to procedures approved by the commissioner.
A cash deposit shall be filed with the treasurer of state in a manner and according to
procedures approved by the treasurer of state in consultation with the commissioner. The
treasurer of state shall not refund a deposit until sixty days following either the date that the
invention developer has ceased doing business in the state or a bond has been filed with the
commissioner in compliance with this section.
3. a. The security shall be in favor of the state for the benefit of any person entering into
a contract with and damaged by an invention developer, if the damages are caused by one of
the following:
(1) A failure by the invention developer to perform the terms of the contract.
(2) Theinsolvencyoftheinventiondeveloperorthecessationoftheinventiondeveloper’s
business.
(3) The intentional violation of a provision of this chapter by the invention developer.
b. A person claiming against the security may maintain an action at law against the
invention developer. An action against a bond may also include the surety. The aggregate
§523G.6, INVENTION DEVELOPMENT SERVICES 6
liability of the surety to all persons for all breaches of conditions of the bond shall not exceed
the amount of the bond.