2011 Connecticut Code
Title 36a The Banking Law of Connecticut
Chapter 669 Regulated Activities
Sec. 36a-671d. Surety bond required. Form of surety bond. Cancellation of bond. Notice. Automatic suspension of license. Notice. Opportunity for hearing.

      Sec. 36a-671d. Surety bond required. Form of surety bond. Cancellation of bond. Notice. Automatic suspension of license. Notice. Opportunity for hearing. (a)(1) No debt negotiation license, and no renewal thereof, shall be granted unless the applicant has filed a surety bond with the commissioner in an aggregate amount of forty thousand dollars for all licensed locations. Such surety bond shall be written by a surety authorized to write such bonds in this state.

      (2) The form of any surety bond submitted pursuant to this section shall be approved by the Attorney General. Any surety bond filed under this section shall be conditioned upon the licensee faithfully performing any and all written agreements with debtors and conducting such business consistent with the provisions of sections 36a-671 to 36a-671d, inclusive. Any debtor who may be damaged by failure to perform any written agreements or by conduct inconsistent with the provisions of sections 36a-671 to 36a-671d, inclusive, may proceed on any such surety bond against the principal or surety thereon, or both, to recover damages. The commissioner may proceed on any such surety bond against the principal or surety thereon, or both, to collect any civil penalty imposed upon the licensee pursuant to subsection (a) of section 36a-50. The proceeds of any bond, even if commingled with other assets of the licensee, shall be deemed by operation of law to be held in trust for the benefit of such claimants against the licensee in the event of bankruptcy of the licensee and shall be immune from attachment by creditors and judgment creditors. Any bond required by this section shall be maintained during the entire period of the license granted to the applicant, and the aggregate liability under any such bond shall not exceed the principal amount of the bond.

      (b) The surety shall have the right to cancel any bond written or issued under subsection (a) of this section at any time by a written notice to the licensee stating the date cancellation shall take effect. Such notice shall be sent by certified mail to the licensee at least thirty days prior to the date of cancellation. No such bond shall be cancelled unless the surety notifies the commissioner in writing not less than thirty days prior to the effective date of cancellation. After receipt of such notification from the surety, the commissioner shall give written notice to the licensee of the date such bond cancellation shall take effect. The commissioner shall automatically suspend the license on such date, unless prior to such date the licensee submits a letter of reinstatement of the bond from the surety or a new bond, or the licensee has surrendered the license. After a license has been automatically suspended, the commissioner shall give the licensee notice of the automatic suspension pending proceedings for revocation or refusal to renew and an opportunity for a hearing on such actions in accordance with section 36a-51 and shall require the licensee to take or refrain from taking such action as, in the opinion of the commissioner, will effectuate the purposes of this section.

      (c) No licensee shall use, attempt to use or make reference to, either directly or indirectly, any word or phrase that states or implies that the licensee is endorsed, sponsored, recommended, bonded or insured by the state.

      (P.A. 09-208, S. 30.)