13-42-114. Bond required -- Substitute.
(1) Instead of the surety bond required by Section 13-42-113, a provider may deliver to
the administrator, in the amount required by Subsection 13-42-113(2), and, except as otherwise
provided in Subsection (1)(c)(i), payable or available to this state and to individuals who reside
in this state when they agree to receive debt-management services from the provider, as their
interests may appear, if the provider or its agent does not comply with this chapter:
(a) a certificate of insurance:
(i) issued by an insurance company authorized to do business in this state and rated at
least A or equivalent by a nationally recognized rating organization approved by the
administrator; and
(ii) with no deductible, or if the provider supplies a bond in the amount of $5,000, a
deductible not exceeding $5,000;
(b) a certificate of deposit issued or confirmed by a bank approved by the administrator,
payable upon presentation of a certificate by the administrator stating that the provider or its
agent has not complied with this chapter; or
(c) with the approval of the administrator:
(i) an irrevocable letter of credit, issued or confirmed by a bank approved by the
administrator, payable upon presentation of a certificate by the administrator stating that the
provider or its agent has not complied with this chapter; or
(ii) bonds or other obligations of the United States or guaranteed by the United States or
bonds or other obligations of this state or a political subdivision of this state, to be deposited and
maintained with a bank approved by the administrator for this purpose.
(2) If a provider furnishes a substitute pursuant to Subsection (1), the provisions of
Subsections 13-42-113(1), (3), (4), and (5) apply to the substitute.
Amended by Chapter 229, 2009 General Session
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Last revised: Thursday, May 28, 2009