13-42-113. Surety bond required.
(1) Except as otherwise provided in Section, a provider that is required to be registered under this chapter shall file a surety bond with the division, which shall: 13-42-114 be in effect during the period of registration and for two years after the day on which the provider ceases providing debt-management services to individuals in this state; and run to this state for the benefit of this state and of individuals who reside in this state when the individuals agree to receive debt-management services from the provider, as the individuals' interests may appear.
(2) Subject to adjustment of the dollar amount in accordance with Subsection, a surety bond filed in accordance with Subsectionshall: 13-42-132(6) (1) be in the amount of $100,000; be issued by a surety company authorized to do business in this state and rated at least A- by a nationally recognized rating organization; and have payment conditioned on noncompliance of the provider or its agent with this chapter.
(3) If the principal amount of a surety bond is reduced by payment of a claim or a judgment, the provider shall immediately notify the division and, no later than 30 days after the day on which the division gives notice to the provider, file a new or additional surety bond in an amount to comply with the $100,000 requirement. If for any reason a surety terminates a bond, the provider shall immediately file a new surety bond in the amount of $100,000.
(4) The division or an individual may obtain satisfaction out of the surety bond procured in accordance with this section if: the division assesses expenses under Subsection, issues a final order under Subsection, or recovers a final judgment under Subsectionoror Subsection; or 13-42-132(2)(a) 13-42-133(1)(b) 13-42-133(1)(d) (e) 13-42-133(4) an individual recovers a final judgment in accordance with Subsection, Subsection, or Subsection,, or. 13-42-135(1) 13-42-135(2) 13-42-135(3)(a) (b) (d)
(5) If claims against a surety bond exceed or are reasonably expected to exceed the amount of the bond, the division, on the initiative of the division or on petition of the surety, shall, unless the proceeds are adequate to pay all costs, judgments, and claims, distribute the proceeds in the following order: to satisfaction of a final order or judgment under Subsection,, oror Subsection; 13-42-133(1)(a) (d) (e) 13-42-133(4) to final judgments recovered by individuals in accordance with Subsection, Subsection, or Subsection,or, pro rata; 13-42-135(1) 13-42-135(2) 13-42-135(3)(a) (b) (d) to claims of individuals established to the satisfaction of the division, pro rata; and if a final order or judgment is issued under Subsection, to the expenses charged in accordance with Subsection. 13-42-133(1) 13-42-132(2)(a)