§ 24-5-7-14 — Surety bonds; requisites; cancellation; notices; new bond

(a) The state of Indiana shall be the obligee
under the bond.
(b) The bond shall be:
(1) executed by the health spa as principal and by a corporate
surety licensed to do business in Indiana as surety;
(2) in such form and shall contain such terms and conditions as
the secretary of state prescribes;
(3) conditioned upon the faithful performance of all obligations
of a health spa to construct or commence operations at its planned
facility; and
(4) effective from the date of filing with the secretary of state and
shall continue in full force and effect until cancelled.
(c) The total and aggregate liability of the surety on a bond is
limited to the amount specified in the bond.
(d) A health spa may not cancel a bond prior to the commencement
of health spa services without the prior written approval of the
secretary of state and without the secretary's approval of a substitute
bond so as to provide continuous bonding of the health spa's activities
prior to the commencement of health spa services.
(e) The surety on a bond may cancel a bond filed under this chapter
only after the expiration of ninety (90) days from the date the surety, by
registered or certified mail, return receipt requested, mails to the
secretary of state and to the principal on the bond a notice of intent to
cancel.
(f) Not later than thirty (30) days prior to the date upon which a
bond cancellation becomes effective, the health spa shall give written
notice to the secretary of state that a new bond has been obtained so as
to provide continuous bond coverage of the health spa's activities prior
to the commencement of health spa services.

Legislative History

As added by P.L.249-1983, SEC.1.