Florida Regulations 61B-60.004: Bond and Irrevocable Letter of Credit
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(1) Applications for licensure as a broker or a salesperson shall be accompanied by a good and sufficient surety bond or irrevocable letter of credit.
(2) Requirements of bonds and letters of credit.
(a) All bonds and letters of credit:
1. Shall provide coverage during each licensing period of 2 years. Upon renewal of a license, a new bond or letter of credit or a proper continuation certificate corresponding to the licensing period shall be delivered to the division.
2. Shall remain on deposit 1 year beyond the 2 year coverage period. In the event that a broker or salesperson ceases to be licensed, the bond or letter of credit shall remain on deposit with the division for a period of 1 year after the license expires or is terminated and will remain subject to claims arising out of conduct occurring during the period of licensure.
3. Shall reference by name the broker or salesperson, and shall indicate the complete business address of the broker’s principal place of business.
4. Shall be written for the aggregate amount of $25,000 for a broker and $10,000 for a salesperson.
5. Shall be conditioned upon compliance by the broker with the conditions of any written contract made by such broker or salesperson in connection with the sale or exchange of any yacht or ship.
6. Shall be in favor of any person in a transaction who suffers any loss as a result of any violation of the provisions of Florida Statutes Chapter 326
(b) Additional requirements of surety bonds.
1. The bond shall be delivered to the State of Florida, Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile Homes, Section of Yacht and Ship Brokers, at the address given in subsection 61B-60.002(1), F.A.C.
2. The bond shall be executed by a surety company authorized to do business in the State of Florida.
3. The bond shall provide that thirty days notice shall be given by the surety to the division before termination of the bond. Notice shall be sent by certified mail to the division of the intended termination, and upon receipt of the notice, the division shall in turn notify the licensee.
(c) Additional requirements of letters of credit. The letter of credit shall be executed by an officer of a federal or state chartered financial institution which is authorized to do business in the State of Florida.
(3) If a surety notifies the division that it is no longer the surety for a licensee, the division shall notify the licensee of such withdrawal by certified mail, return receipt requested, addressed to the licensee’s principal office. Upon the termination of the surety bond, the licensee’s license is automatically suspended until he files a new bond or letter of credit with the division.
Specific Authority 326.003 FS. Law Implemented Florida Statutes § 326.004. History-New 2-13-90, Amended 11-25-90, 8-28-91, Formerly 7D-60.004, Amended 3-13-02.
Terms Used In Florida Regulations 61B-60.004
- Contract: A legal written agreement that becomes binding when signed.
(a) All bonds and letters of credit:
1. Shall provide coverage during each licensing period of 2 years. Upon renewal of a license, a new bond or letter of credit or a proper continuation certificate corresponding to the licensing period shall be delivered to the division.
2. Shall remain on deposit 1 year beyond the 2 year coverage period. In the event that a broker or salesperson ceases to be licensed, the bond or letter of credit shall remain on deposit with the division for a period of 1 year after the license expires or is terminated and will remain subject to claims arising out of conduct occurring during the period of licensure.
3. Shall reference by name the broker or salesperson, and shall indicate the complete business address of the broker’s principal place of business.
4. Shall be written for the aggregate amount of $25,000 for a broker and $10,000 for a salesperson.
5. Shall be conditioned upon compliance by the broker with the conditions of any written contract made by such broker or salesperson in connection with the sale or exchange of any yacht or ship.
6. Shall be in favor of any person in a transaction who suffers any loss as a result of any violation of the provisions of Florida Statutes Chapter 326
(b) Additional requirements of surety bonds.
1. The bond shall be delivered to the State of Florida, Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile Homes, Section of Yacht and Ship Brokers, at the address given in subsection 61B-60.002(1), F.A.C.
2. The bond shall be executed by a surety company authorized to do business in the State of Florida.
3. The bond shall provide that thirty days notice shall be given by the surety to the division before termination of the bond. Notice shall be sent by certified mail to the division of the intended termination, and upon receipt of the notice, the division shall in turn notify the licensee.
(c) Additional requirements of letters of credit. The letter of credit shall be executed by an officer of a federal or state chartered financial institution which is authorized to do business in the State of Florida.
(3) If a surety notifies the division that it is no longer the surety for a licensee, the division shall notify the licensee of such withdrawal by certified mail, return receipt requested, addressed to the licensee’s principal office. Upon the termination of the surety bond, the licensee’s license is automatically suspended until he files a new bond or letter of credit with the division.
Specific Authority 326.003 FS. Law Implemented Florida Statutes § 326.004. History-New 2-13-90, Amended 11-25-90, 8-28-91, Formerly 7D-60.004, Amended 3-13-02.