Louisiana Revised Statutes 51:1911 – Bond or trust account required
Terms Used In Louisiana Revised Statutes 51:1911
- 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.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
A. Every loan broker must obtain a surety bond issued by a surety company authorized to do business in Louisiana, or establish a trust account with a licensed and insured bank or savings institution located in Louisiana. The amount of the bond or trust account shall be twenty five thousand dollars. The bond or trust account shall be in favor of the state of Louisiana. Any person damaged by the loan broker’s breach of contract or of any obligation arising therefrom, or by any violation of law, or the attorney general seeking additional relief under La. Rev. Stat. 51:1408, may bring an action against the bond or trust account to recover monies therefrom. The aggregate liability of the surety or trustee shall be only for actual damages or additional relief under La. Rev. Stat. 51:1408 and in no event shall exceed the amount of the bond or trust account.
B. The term of the bond shall be continuous, but it shall be subject to termination by the surety upon giving sixty days written notice to the principal and to the state treasurer. The bond shall continue in effect during the sixty day period.
C. A copy of said bond shall be conspicuously posted at any business location of the broker near the location where payments are received.
D. It shall be unlawful for any loan broker or its agent or employee to post an expired bond or a bond which does not meet the requirements of this Chapter.
E. It shall be unlawful for any loan broker or its agent or employee to collect or attempt to collect any deposit or payment toward a fee where a valid bond as required by Subsections A and B herein is not posted as required by Subsection C herein.
F. Any person who is found guilty of any act prohibited by this Section shall be guilty of a misdemeanor and shall be fined five hundred dollars, and may be imprisoned for up to six months, or both.
Added by Acts 1982, No. 811, §1.