§ 59-1314 — Written receipt for collateral - Description of

Oklahoma § 59-1314

• Jurisdiction: Oklahoma
• Title 59: Professions And Occupations

Text

collateral - Fiduciary duties - Monthly reports - Records - Reviewal fee. A. When a bail bondsman or managing general agent accepts collateral, the bail bondsman or managing general agent shall give a written receipt for same, and this receipt shall give in detail a full description of the collateral received. A description of the collateral shall be listed on the undertaking by affidavit. All property taken as collateral, whether personal, intangible or real, shall be receipted for and deemed, for all purposes, to be in the name of, and for the use and benefit of, the insurer. Every receipt, encumbrance, mortgage or other evidence of the custody, possession or claim shall facially indicate that it has been taken or made on behalf of the insurer through its authorized agent, the individual licensed bondsman or managing general agent who has transacted the undertaking with the bond principal. Any mortgage or other encumbrance against real property taken under the provisions of this section which does not indicate beneficial ownership of the claim to be in favor of the insurer shall be deemed to constitute a cloud on the title to real estate and shall subject the person filing, or causing same to be filed, in the real estate records of the county, to a penalty of treble damages or One Thousand Dollars ($1,000.00), whichever is greater, in an action brought by the person, organization or corporation injured thereby. For collateral taken, or liens or encumbrances taken or made pursuant to the provisions of this section, the individual bondsman or managing general agent taking possession of the property or making the lien, claim or encumbrance shall do so on behalf of the insurer, and the individual licensed bondsman shall be deemed to act in the capacity of fiduciary in relation to both: 1. The principal or other person from whom the property is taken or claimed against; and 2. The insurer whose agent is the licensed bondsman. As fiduciary and bailee for hire, the individual bondsman shall be liable in criminal or civil actions at law for failure to properly receipt or account for, maintain or safeguard, release or deliver possession upon lawful demand, in addition to any other penalties set forth in this subsection. No person who takes possession of property as collateral pursuant to this section shall use or otherwise dissipate the asset, or do otherwise with the property than to safeguard and maintain its condition pending its return to its lawful owner, or deliver to the insurer, upon lawful demand pursuant to the terms of the bailment. When collateral security is received in the form of cash or check or other negotiable instrument, the bondsman shall deposit the cash or instrument within two (2) business days after receipt in an established, separate non-interest-bearing trust account in any bank located in Oklahoma. The trust account funds required under this section shall not be commingled with other operating funds. B. Every licensed bondsman shall file monthly electronically with the Insurance Commissioner and on forms approved by the Commissioner as follows: 1. A monthly report showing every bond written, amount of bond, whether released or revoked during each month, showing the court and county, and the style and number of the case, premiums charged and collateral received; and 2. Monthly reports showing total current liabilities, all bonds written during the month by the professional bondsman or multicounty agent bondsman and by any licensed bondsman who may countersign for the professional bondsman or multicounty agent bondsman, all bonds terminated during the month, and the total liability and a list of all bondsmen currently employed by the professional bondsman or multicounty agent bondsman. Monthly reports shall be submitted electronically to the Insurance Commissioner by the fifteenth day of each month. The records shall be maintained by the Commissioner as public records. C. Every licensee shall keep at the place of business of the licensee the usual and customary records pertaining to transactions authorized by the license. All of the records shall be available and open to the inspection of the Commissioner at any time during business hours during the three (3) years immediately following the date the liability of the bondsman on the bond is discharged by the court or the date collateral is returned by the bondsman to its lawful owner, whichever is later. If an appearance bond is never executed and filed with the court, then all records shall be maintained for three (3) years immediately following the date the documents were prepared. The Commissioner may require a financial examination or market conduct survey during any investigation of a licensee. D. Each bail bondsman shall submit each month with the monthly report of the bondsman, a reviewal fee equal to two-tenths of one percent (2/10 of 1%) of the new liability written for that month. The fee shall be payable to the Insurance Commissioner who shall deposit same with the State Treasurer.

Legislative History

Added by Laws 1965, c. 184, § 14, eff. Jan. 1, 1966. Amended by Laws 1984, c. 225, § 15, emerg. eff. May 23, 1984; Laws 1987, c. 211, § 15, eff. Nov. 1, 1987; Laws 1988, c. 177, § 2, emerg. eff. May 26, 1988; Laws 1989, c. 257, § 6, eff. Nov. 1, 1989; Laws 1990, c. 195, § 5, emerg. eff. May 10, 1990; Laws 1993, c. 170, § 2, eff. Sept. 1, 1993; Laws 1998, c. 394, § 2, eff. July 1, 1998; Laws 2009, c. 432, § 25, eff. July 1, 2009; Laws 2010, c. 222, § 58, eff. Nov. 1, 2010; Laws 2011, c. 242, § 17 and Laws 2011, c. 293, § 17, eff. June 20, 2011; Laws 2014, c. 53, § 5, eff. July 1, 2014; Laws 2015, c. 110, § 6, eff. Nov. 1, 2015; Laws 2016, c. 203, § 8, eff. Nov. 1, 2016; Laws 2021, c. 368, § 2, eff. Nov. 1, 2021. NOTE: Laws 2011, c. 242, § 17 and Laws 2011, c. 293, § 17 made identical changes to this section.