32-10-303. Surety bonds. (1) (a) Licensees shall continuously maintain a surety bond in accordance with this section.
     (b) A surety bond must be used for the recovery of expenses, fines, and fees levied by the department for losses or damages incurred by borrowers or consumers as the result of a licensee's noncompliance with this chapter.
     (c) The surety bond must be payable when a licensee fails to comply with any provision of this chapter, must be payable to the department, and must be issued by an insurance company authorized to do business in this state.
     (d) A copy of the surety bond, including any and all riders and endorsements executed subsequent to the effective date of the bond, must be filed with the department within 10 days of the execution of the bond.
     (2) The department may adopt rules with respect to the requirements for surety bonds.
     (3) The surety bond must contain a clause that the insurance company will notify the department at least 30 days prior to canceling the surety bond for any reason.
     (4) If a licensee or the issuer of the surety bond cancels the bond, the licensee shall inform the department of the cancellation in writing by certified mail and provide a new surety bond to the department.
     (5) If the department is notified that a surety bond has been canceled and the licensee has not supplied a new surety bond to the department by the date of the cancellation, the licensee's license is automatically suspended until a new surety bond acceptable to the department is received.

     History: En. Sec. 13, Ch. 369, L. 2007.