Section 407.639

Title XXVI TRADE AND COMMERCE

Chapter 407

Effective - 28 Aug 1991   

  407.639.  Copy of bond to be filed with director of finance — purpose of bond — amount of bond — statement by director of finance. — 1.  This section applies to a credit services organization required by subdivision (1) of section 407.638 to obtain a surety bond or establish a surety account.

  2.  If a bond is obtained, a copy of it shall be filed with the director of finance.  If a surety account is established, notification of the depository, the trustee and the account number shall be filed with the director of finance.

  3.  The bond or surety account required shall be in favor of the state for the benefit of any person who is damaged by any violation of sections 407.635 to 407.644.  The bond or surety account shall also be in favor of any person damaged by such a violation.

  4.  Any person claiming against the bond or surety account for a violation of sections 407.635 to 407.644 may maintain an action at law against the credit services organization and against the surety or trustee.  The surety or trustee shall be liable only for damages awarded under subdivision (1) of subsection 1 of section 407.644 and not the punitive damages permitted under that section.  The aggregate liability of the surety or trustee to all persons damaged by a credit services organization's violation of this chapter may not exceed the amount of the surety account or bond.

  5.  The bond or the surety account shall be in the amount of ten thousand dollars.

  6.  A depository holding money in a surety account under sections 407.635 to 407.644 shall not convey money in the account to the credit services organization that established the account or a representative of the credit services organization unless the credit services organization or representative presents a statement issued by the director of finance indicating that section 407.640^* has been satisfied in relation to the credit services organization.  The director of finance may conduct investigations and require submission of information as is necessary to enforce this section.

  7.  The bond or surety account shall be maintained until two years after the date that the credit services organization ceases operations.

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(L. 1991 S.B. 112 § 4)

*Revisor's Note:  Words "subsection 6 of section 5" appear in original rolls.  Section 5 was codified as section 407.460 by the Revisor, but did not contain a subsection 6.