7-3-21. Bond requirements.

An applicant shall provide with its application a corporate surety bond issued by a bonding company or insurance company authorized to do business in this state and approved by the department.#

The bond shall:#

1. (1)

   Be in a form satisfactory to the department;#

2. (2)

   Be in the aggregate amount of $25,000.00 for the primary location to be operated by a licensee plus $5,000.00 for each additional location to be operated by such licensee, provided that no licensee shall be required to have a bond that exceeds a total amount of $100,000.00;#

3. (3)

   Run to the State of Georgia for the benefit of the department or any claimant against a licensee arising out of the licensee’s business of making installment loans;#

4. (4)

   Require a licensee to pay any and all money for the benefit of any person damaged by noncompliance of the licensee with this chapter, with rules, regulations, or orders issued by the department pursuant to this chapter, or with any condition of the bond; and#

5. (5)

   Require a licensee to pay any and all money that may become due and owing to any creditor of or claimant against the licensee arising out of the licensee’s business of making installment loans.#

Payments due under the bond shall include money owed to the department for fees and related interest and penalties under Code Section 7-3-16 and fines or penalties for noncompliance of the licensee with this chapter or rules, regulations, or orders issued pursuant to this chapter.#

Claimants or creditors against the licensee may bring an action directly on the bond.#

In no event shall the aggregate liability of the surety exceed the principal sum of the face amount of the bond.#

In the event that the principal sum of the bond is reduced by one or more recoveries or payments thereon, a licensee shall:#

1. (1)

   Provide a new or additional bond so that the total or aggregate principal sum of such bond or bonds equals the sum required under subsection (b) of this Code section; or#

2. (2)

   Provide an endorsement duly executed by the corporate surety reinstating the bond to the required principal sum thereof.#

A bond shall not be canceled by either the licensee or the corporate surety except upon notice to the department electronically through the Nationwide Multistate Licensing System and Registry, and such cancellation shall be effective no sooner than 30 days after receipt by the department of such notice and only with respect to any breach of condition occurring after the effective date of such cancellation.#