This text of Indiana § 28-7-5-5.5 (Surety bond; requirements; amount; termination; liability; notices) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
5.
(a)Each person engaged in the business of
pawnbroking in Indiana must be covered by a surety bond in
accordance with this section. The initial application and any renewal
application for licensure under this chapter must be accompanied by
proof that the applicant has executed a bond in accordance with this
section.
(b)A surety bond issued under this section must:
(1)provide coverage for the licensee and the licensee's employees
and agents in an amount determined by the director;
(2)be in a form prescribed by the director;
(3)be in effect during the term of the license issued under this
chapter;
(4)subject to subsection (c), remain in effect during the two (2)
years after the license of the licensee is surrendered or terminated;
(5)be payable to the department for the benefit of:
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5. (a) Each person engaged in the business of
pawnbroking in Indiana must be covered by a surety bond in
accordance with this section. The initial application and any renewal
application for licensure under this chapter must be accompanied by
proof that the applicant has executed a bond in accordance with this
section.
(b) A surety bond issued under this section must:
(1) provide coverage for the licensee and the licensee's employees
and agents in an amount determined by the director;
(2) be in a form prescribed by the director;
(3) be in effect during the term of the license issued under this
chapter;
(4) subject to subsection (c), remain in effect during the two (2)
years after the license of the licensee is surrendered or terminated;
(5) be payable to the department for the benefit of:
(A) the state; and
(B) individuals who reside in Indiana when they agree to
receive pawnbroking services from the licensee;
(6) be issued by a bonding, surety, or insurance company
authorized to do business in Indiana and rated at least "A-" by at
least one (1) nationally recognized investment rating service; and
(7) have payment conditioned upon the licensee's or any of the
licensee's employees' or agents' noncompliance with or violation
of this chapter or other applicable federal or state laws or
regulations.
(c) The director may adopt rules or guidance documents with
respect to the requirements for a surety bond as necessary to
accomplish the purposes of this chapter. Upon written request from a
licensee, the director may, at the discretion of the director, waive or
shorten the two (2) year period set forth in subsection (b)(4) during
which a surety bond required by this section must remain in effect after
the licensee's license is surrendered or terminated.
(d) If the principal amount of a surety bond required under this
section is reduced by payment of a claim or judgment, the licensee for
whom the bond is issued shall immediately notify the director of the
reduction and, not later than thirty (30) days after notice by the
director, file a new or an additional surety bond in an amount set by the
director. The amount of the new or additional bond set by the director
must be at least the amount of the bond before payment of the claim or
judgment.
(e) If for any reason a surety terminates a bond issued under this
section, the licensee shall immediately notify the department and file
a new surety bond in an amount determined by the director.
(f) Cancellation of a surety bond issued under this section does not
affect any liability incurred or accrued during the period when the
surety bond was in effect.
(g) The director may obtain satisfaction from a surety bond issued
under this section if the director incurs expenses, issues a final order,
or recovers a final judgment under this chapter.
(h) Notices required under this section must be in writing and
delivered by certified mail, return receipt requested and postage
prepaid, or by overnight delivery using a nationally recognized carrier.