Arizona Laws 44-1797.02. Bond; beneficiaries; actions; liability; cancellation
A. The bond required by Section 44-1797.01 shall be in favor of this state to be held in trust by the state treasurer for the benefit of any person who suffers financial damage as a result of any violation of this article or by fraud or dishonesty or failure to provide the services of the discount buying organization in the performance of the contract. Any person making a claim against the bond may maintain an action against the discount buying organization and the surety, except that the surety is liable only for the actual damages plus restitution and not the treble damages permitted under Section 44-1797.16. The surety bond may be sued upon successive actions until the full amount is exhausted. A person may not commence suit on the bond after the expiration of four years following the act or omission on which the suit is based. Subject to the limitations in this article, a surety shall be liable for damages for any act or omission occurring during the time its bond is in effect.
Terms Used In Arizona Laws 44-1797.02
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- File: when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored. See Arizona Laws 44-1691
- Fraud: Intentional deception resulting in injury to another.
- organization: means a person, corporation, unincorporated association or other organization that, for a consideration, provides or purports to provide its clients or the clients or members of any other discount buying organization with the ability to purchase goods or services at discount prices, except that such organization does not include:
(a) A discount buying organization in which the total consideration paid by each client or member in any manner whatsoever for the purchase of discount buying services from such organization does not exceed a one-time fee of fifty dollars or an annual fee of fifty dollars to be paid on a yearly basis. See Arizona Laws 44-1797
- Person: means an individual, partnership, corporation, association, or any other entity of whatever kind or nature. See Arizona Laws 44-1691
- Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
B. The aggregate liability of the surety to all persons for all breaches of the conditions of the bond provided in this section may not exceed the amount of the bond.
C. A surety for any cause may cancel the bond by giving sixty days’ written notice of the cancellation to the state treasurer, attorney general and the discount buying organization. The surety shall give the notice by certified mail. On or before the effective date of the cancellation of the bond, the discount buying organization shall either obtain a new bond which meets the requirements of this section and Section 44-1797.01 and file a copy of the new bond with the state treasurer or make a cash deposit in lieu of a bond as provided in Section 44-1797.03.