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§ 2525. Penal bond

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 63 P.S. Professions and Occupations (State Licensed)Effective: November 1, 2014

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 63 P.S. Professions and Occupations (State Licensed) (Refs & Annos)
Chapter 40. Debt Settlement Services Act
Chapter 3. Licensure
Effective: November 1, 2014
63 P.S. § 2525
§ 2525. Penal bond
(a) Issuance.--
(1) The department shall issue a license under this act if, prior to the issuance of the license, the applicant obtains and maintains a bond that meets all of the following:
(i) Is from a surety company authorized to do business in this Commonwealth.
(ii) Is in an amount equal to $25,000.
(iii) The licensee will hold directly.
(iv) Is in a form acceptable to the department.
(2) The bond shall meet all of the following:
(i) Be a penal bond conditioned on compliance with this act and subject to forfeiture by the department.
(ii) Run to the Commonwealth for its use.
(iii) Be for the use of a person against the licensee for the benefit of a consumer who is injured by a violation of this act or regulation promulgated under this act.
(iv) Contains a cancellation provision as provided under subsection (d).
(b) Right of aggrieved person.--
(1) If a person is aggrieved, the person may do one of the following:
(i) With the written consent of the department, recover fees and costs from a bond by filing a claim with the surety company or maintaining an action on the bond.
(ii) Recover fees and costs by filing a formal complaint against the licensee with the department which shall adjudicate the matter. The adjudication shall be binding upon the surety company and enforceable by the department in Commonwealth Court and by an aggrieved person in any court.
(2) An aggrieved person seeking to recover from a bond that has already been forfeited by the department or which the department is in the process of forfeiting may recover payment on the bond if, after filing a petition with the department, the department consents to the aggrieved person's requested payment or portion of the payment. The department may pay the aggrieved person from the bond proceeds it recovers.
(c) Additional relief.--
(1) Nothing under this section shall be construed to limit the ability of a court or magisterial district judge to award to an aggrieved person other damages, court costs and attorney fees, except that claims that are not fees or related costs may not be recovered from the bond.
(2) The department may consent to or order pro rata or other recovery on the bond for an aggrieved person if claims against the bond may or shall exceed its full monetary amount.
(d) Cancellation of bonds.--A bond shall contain a provision that it may not be canceled for cause unless notice of intention to cancel is given to the department at least 30 days before the day upon which cancellation takes effect. Cancellation of the bond shall not invalidate the bond regarding the period of time it was in effect.

Credits

2014, July 9, P.L. 1022, No. 118, § 305, effective Nov. 1, 2014.
63 P.S. § 2525, PA ST 63 P.S. § 2525
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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