2019 Rhode Island General Laws
Title 19 - Financial Institutions
Chapter 19-14 Licensed Activities
Section 19-14-6 Bond of applicant. [Effective until January 1, 2020.]
§ 19-14-6. Bond of applicant. [Effective until January 1, 2020.]
(a) An applicant for any license shall file with the director, or the director's designee, a bond to be approved by him or her in which the applicant shall be the obligor.
(b) The amount of the bond shall be as follows:
(1) Small-loan lenders, the sum of ten thousand dollars ($10,000);
(2) Loan brokers, the sum of twenty thousand dollars ($20,000);
(3) Lenders, the sum of fifty thousand dollars ($50,000);
(4) Sale of checks and electronic money transfer licensees, the sum of fifty thousand dollars ($50,000) subject to a maximum of one hundred and fifty thousand dollars ($150,000) when aggregated with agent locations;
(5) Check-cashing licensees who accept checks for collection with deferred payment, the sum of fifty thousand dollars ($50,000) subject to a maximum of one hundred and fifty thousand dollars ($150,000) when aggregated with agent locations;
(6) Foreign-exchange licensees, the sum of ten thousand dollars ($10,000);
(7) The amounts listed above apply to licensees with zero (0) to three (3) branch or agent locations. Licensees with four (4) to seven (7) branches shall post a bond, as indicated above, and an additional bond in the sum of ten thousand dollars ($10,000). Licensees with eight (8) or more branches shall post a bond, as indicated above, and an additional bond in the sum of twenty-five thousand dollars ($25,000);
(8) Each debt-management services registrant, the amount provided in § 19-14.8-13; or
(9) Each third-party loan servicer, the sum of fifty thousand dollars ($50,000).
(c) The bond shall run to the state for the use of the state and of any person who may have cause of action against the obligor of the bond under the provisions of this title. The bond shall be perpetual and shall be conditioned upon the obligor faithfully conforming to, and abiding by, the provisions of this title and of all rules and regulations lawfully made, and the obligor will pay to the state and to any person any and all money that may become due or owing to the state or to the person from the obligor under, and by virtue of, the provisions of this title.
(d) The provisions of subsection (b)(6) shall not apply to any foreign-exchange business holding a valid, electronic money-transfer license issued pursuant to § 19-14-1 et seq., that has filed with the division of banking the bond required by subsections (b)(4) and (b)(7).
(e) The bond shall remain in force and effect until the surety is released from liability by the director, or the director's designee, or until the bond is cancelled by the surety. The surety may cancel the bond and be released from further liability under the bond upon receipt by the director, or the director's designee, of written notice of the cancellation of the bond at least thirty (30) days in advance of the cancellation of the bond. The cancellation shall not affect any liability incurred or accrued under the bond before the termination of the thirty-day (30) period. Upon receipt of any notice of cancellation, the director shall provide written notice to the licensee.
(f) Upon receipt of any notice of cancellation, the director may provide written notice to the licensee requiring reinstatement or replacement of the bond. Unless the bond is reinstated by the surety, or a satisfactory replacement bond is filed with the director prior to the cancellation of the original bond, the license shall be suspended. The licensee will be provided notice of the suspension and may request a hearing within thirty (30) days. If the licensee does not request a hearing, the director, or director's designee, shall issue an order revoking the license for failure to comply with this section.
History of Section.
(P.L. 1995, ch. 82, § 52; P.L. 2001, ch. 129, § 1; P.L. 2002, ch. 171, § 1; P.L. 2004, ch. 579, § 2; P.L. 2006, ch. 243, § 1; P.L. 2006, ch. 291, § 1; P.L. 2007, ch. 73, art. 16, § 1; P.L. 2007, ch. 244, § 1; P.L. 2014, ch. 106, § 3; P.L. 2014, ch. 125, § 3; P.L. 2014, ch. 487, § 1; P.L. 2014, ch. 522, § 1.)
