RSA 359-D:8 · Requirements for Surety Bonds

359-D:8 Requirements for Surety Bonds. – If a credit services organization is required to obtain a surety bond or establish a trust account according to RSA 359-D:3, the following procedures shall be applicable:

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I.

If a bond is obtained, a copy of it shall be filed with the office of the secretary of state. If a trust account is maintained, notification of the depository, the trustee, and the account number shall be filed with the office of the secretary of state.

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II.

The bond or trust account required shall be in favor of the state for the benefit of any person who is damaged by any violation of this chapter. The bond or trust account shall also be in favor of any person damaged by such practices.

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III.

Any person claiming against the bond or trust account for a violation of this chapter may maintain an action at law against the credit services organization and against the surety or trustee. The surety or trustee shall be liable only for actual damages and not the punitive damages permitted under RSA 359-D:11. The aggregate liability of the surety or trustee to all persons damaged by a credit services organization's violation of this chapter shall in no event exceed the amount of the trust account or bond.

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IV.

The bond or the trust account shall be in an amount equal to 5 percent of the total amount of the fees charged buyers by the credit services organization under the contracts entered into between the credit services organization and such buyers during the previous 12 months, but in no case shall the bond be less than $5,000 or more than $25,000. The amount required shall be adjusted once a year, no later than the tenth day of the first month of the credit services organization's fiscal year. Source. 1988, 24:2, eff. Jan. 1, 1989.

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