New Hampshire Revised Statutes 359-D:8 – Requirements for Surety Bonds
Current as of: 2023 | Check for updates
|
Other versions
If a credit services organization is required to obtain a surety bond or establish a trust account according to N.H. Rev. Stat. § 359-D:3, the following procedures shall be applicable:
I. If a bond is obtained, a copy of it shall be filed with the office of the secretary of state. If a trust account is maintained, notification of the depository, the trustee, and the account number shall be filed with the office of the secretary of state.
II. The bond or trust account required shall be in favor of the state for the benefit of any person who is damaged by any violation of this chapter. The bond or trust account shall also be in favor of any person damaged by such practices.
III. Any person claiming against the bond or trust account for a violation of this chapter 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 actual damages and not the punitive damages permitted under N.H. Rev. Stat. § 359-D:11. The aggregate liability of the surety or trustee to all persons damaged by a credit services organization’s violation of this chapter shall in no event exceed the amount of the trust account or bond.
IV. The bond or the trust account shall be in an amount equal to 5 percent of the total amount of the fees charged buyers by the credit services organization under the contracts entered into between the credit services organization and such buyers during the previous 12 months, but in no case shall the bond be less than $5,000 or more than $25,000. The amount required shall be adjusted once a year, no later than the tenth day of the first month of the credit services organization’s fiscal year.
I. If a bond is obtained, a copy of it shall be filed with the office of the secretary of state. If a trust account is maintained, notification of the depository, the trustee, and the account number shall be filed with the office of the secretary of state.
Terms Used In New Hampshire Revised Statutes 359-D:8
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- month: shall mean a calendar month, and the word "year" a calendar year, unless otherwise expressed; and the word "year" shall be equivalent to the expression "year of our Lord. See New Hampshire Revised Statutes 21:8
- person: may extend and be applied to bodies corporate and politic as well as to individuals. See New Hampshire Revised Statutes 21:9
- state: when applied to different parts of the United States, may extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall include said district and territories. See New Hampshire Revised Statutes 21:4
- 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.
II. The bond or trust account required shall be in favor of the state for the benefit of any person who is damaged by any violation of this chapter. The bond or trust account shall also be in favor of any person damaged by such practices.
III. Any person claiming against the bond or trust account for a violation of this chapter 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 actual damages and not the punitive damages permitted under N.H. Rev. Stat. § 359-D:11. The aggregate liability of the surety or trustee to all persons damaged by a credit services organization’s violation of this chapter shall in no event exceed the amount of the trust account or bond.
IV. The bond or the trust account shall be in an amount equal to 5 percent of the total amount of the fees charged buyers by the credit services organization under the contracts entered into between the credit services organization and such buyers during the previous 12 months, but in no case shall the bond be less than $5,000 or more than $25,000. The amount required shall be adjusted once a year, no later than the tenth day of the first month of the credit services organization’s fiscal year.