Bond requirements

(a) An applicant shall provide with its application a corporate surety bond issued by a bonding company or insurance company authorized to do business in this state and approved by the department. (b) The bond shall: (1) Be in a form satisfactory to the department; (2) Be in the aggregate amount of $25,000.00 for the primary location to be operated by a licensee plus $5,000.00 for each additional location to be operated by such licensee, provided that no licensee shall be required to have a bond that exceeds a total amount of $100,000.00; (3) Run to the State of Georgia for the benefit of the department or any claimant against a licensee arising out of the licensee’s business of making installment loans; (4) Require a licensee to pay any and all money for the benefit of any person damaged by noncompliance of the licensee with this chapter, with rules, regulations, or orders issued by the department pursuant to this chapter, or with any condition of the bond; and (5) Require a licensee to pay any and all money that may become due and owing to any creditor of or claimant against the licensee arising out of the licensee’s business of making installment loans. (c) Payments due under the bond shall include money owed to the department for fees and related interest and penalties under Code Section 7-3-16 and fines or penalties for noncompliance of the licensee with this chapter or rules, regulations, or orders issued pursuant to this chapter. (d) Claimants or creditors against the licensee may bring an action directly on the bond. (e) In no event shall the aggregate liability of the surety exceed the principal sum of the face amount of the bond. (f) In the event that the principal sum of the bond is reduced by one or more recoveries or payments thereon, a licensee shall: (1) Provide a new or additional bond so that the total or aggregate principal sum of such bond or bonds equals the sum required under subsection (b) of this Code section; or 660 7-3-22 (2) Provide an endorsement duly executed by the corporate surety reinstating the bond to the required principal sum thereof. (g) A bond shall not be canceled by either the licensee or the corporate surety except upon notice to the department electronically through the Nationwide Multistate Licensing System and Registry, and such cancellation shall be effective no sooner than 30 days after receipt by the department of such notice and only with respect to any breach of condition occurring after the effective date of such cancellation. History. Code 1981, § 7-3-21, enacted by Ga. L. 2020, p. 156, § 2/SB 462; Ga. L. 2022, p. 220, § 43/HB 891. Amendments. The 2022 amendment, effective July 1, 2022, substituted “fees and related interest and penalties under Code Section 7-3-16” for “fees, taxes and related inter- est and penalties under Code Sections 7-3-16, 7-3-17, and 7-3-18,” in subsection (c). Editor’s notes. Ga. L. 2020, p. 156, § 2/SB 462, effective June 30, 2020, redesignated former Code Section 7-3-21 as present Code Section 7-3-18. 7-3-22. Investigations of applicants; license nontransferable; expiration and annual renewal. (a) The department shall conduct an investigation of every applicant for licensure to determine the financial responsibility, experience, character, general fitness, and eligibility for licensure of such applicant. The department may issue the applicant a license if the department determines to its general satisfaction that: (1) The applicant is financially sound and responsible and able to engage in the business of making installment loans in an honest, fair, and efficient manner and with the confidence and trust of the community; (2) Approval of the application will promote the convenience and advantage of the community in which the applicant proposes to operate; and (3) All conditions for licensure set forth in this chapter and in the rules and regulations of the department have been satisfied. (b) No license shall be transferable or assignable. (c) Each license shall expire on December 31 of each year, and application for renewal shall be made annually on or before December 1 of each year. History. Code 1981, § 7-3-22, enacted by Ga. L. 2020, p. 156, § 2/SB 462. Editor’s notes. Former Code Section 7-3-22, concerning examinations, investigations, and hearings, was repealed by Ga. L. 2020, p. 156, § 2/SB 462, effective June 30, 2020. The former Code section was based on Ga. L. 1904, p. 79, § 8; Civil Code 1910, 661 § 3456; Ga. L. 1920, p. 215, § 10; Code 1933, §§ 25-211, 25-310; Ga. L. 1955, p. 7-3-23 431, § 11; Ga. L. 1963, p. 370, § 3; Ga. L. 1975, p. 393, § 1; Ga. L. 1989, p. 14, § 7. 7-3-23. Use of Nationwide Multistate Licensing System and Registry. (a) The department is authorized to: (1) Participate in the Nationwide Multistate Licensing System and Registry to facilitate the sharing of information and standardization of the licensing and application processes for persons subject to this chapter; (2) Enter into operating agreements, information sharing agreements, interstate cooperative agreements, and other contracts necessary for the department’s participation in the Nationwide Multistate Licensing System and Registry; (3) Disclose or cause to be disclosed without liability, via the Nationwide Multistate Licensing System and Registry, applicant and licensee information, including, but not limited to, violations of this chapter and enforcement actions, to facilitate regulatory oversight; (4) Request that the Nationwide Multistate Licensing System and Registry adopt an appropriate privacy, data security, and security breach notification policy that is in full compliance with existing state and federal law; and (5) Establish and adopt, by rule and regulation, requirements for participation by applicants and licensees in the Nationwide Multistate Licensing System and Registry, upon the department’s determination that each requirement is consistent with both the public interest and the purposes of this chapter. (b) The department shall enact rules and regulations establishing a process whereby licensees may challenge information entered by the department into the Nationwide Multistate Licensing System and Registry. (c) Regardless of its participation in the Nationwide Multistate Licensing System and Registry, the department shall retain full and exclusive authority over determinations of whether to grant, renew, suspend, or revoke licenses issued under this chapter. Nothing in this Code section shall be construed to reduce or otherwise limit such authority. (d) Information disclosed through the Nationwide Multistate Licensing System and Registry is deemed to be disclosed directly to the department and subject to Code Section 7-1-70. Such information shall not be disclosed to the public and shall remain privileged and confidential pursuant to Code Section 7-1-70. 662 7-3-30 (e) Applicants and licensees shall be required to pay the charges associated with their utilization of the Nationwide Multistate Licensing System and Registry. History. Code 1981, § 7-3-23, enacted by Ga. L. 2020, p. 156, § 2/SB 462. Editor’s notes. Former Code Section 7-3-23, concerning cease and desist orders and enjoining violations, was repealed by Ga. L. 2020, p. 156, § 2/SB 462, effective June 30, 2020. The former Code section was based on Ga. L. 1957, p. 331, § 2; Ga. L. 1989, p. 14, § 7; Ga. L. 1997, p. 143, § 7. ARTICLE 4 OBLIGATIONS OF LICENSEES Editor’s notes. This article was designated by Ga. L. 2020, p. 156, § 2/SB 462, effective June 30, 2020. 7-3-30. Requirements of licensees; maintenance of records.