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§ 2407. Penal bond

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 63 P.S. Professions and Occupations (State Licensed)Effective: February 6, 2009

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 63 P.S. Professions and Occupations (State Licensed) (Refs & Annos)
Chapter 39. Debt Management Services Act (Refs & Annos)
Effective: February 6, 2009
63 P.S. § 2407
§ 2407. Penal bond
(a) General rule.--The department shall issue a license under this act if the applicant obtains and maintains a bond in an amount greater than the total amount of Pennsylvania consumer funds that the licensee will hold directly or in trust at any time, in a form acceptable to the department, prior to the issuance of the license, from a surety company authorized to do business in this Commonwealth. The bond shall be a penal bond conditioned on compliance with this act and subject to forfeiture by the department and shall run to the Commonwealth for its use. The bond shall also be for the use of any person against the licensee for the benefit of any consumer who is injured by a violation of this act or regulation promulgated under this act.
(b) Rights of aggrieved persons.--
(1) If the person is aggrieved, the person may, with the written consent of the department, recover fees and costs from the bond by filing a claim with the surety company or maintaining an action on the bond.
(2) In the alternative, an aggrieved person may 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.
(3) Any 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 thereof. The department may pay the aggrieved person from the bond proceeds it recovers.
(c) Other relief.--
(1) Nothing in this section shall be construed to limit the ability of any court or magisterial district judge to award to any aggrieved person other damages, court costs and attorney fees as permitted by law, but those claims that are not fees or related costs may not be recovered from the bond.
(2) The department, in its discretion, may consent to or order pro rata or other recovery on the bond for any aggrieved person if claims against the bond may or do exceed its full monetary amount.
(d) Cancellation of bonds.--No bond shall comply with the requirements of this section unless it contains a provision that it shall not be canceled for any cause unless notice of intention to cancel is given to the department at least 30 days before the day upon which cancellation shall take effect. Cancellation of the bond shall not invalidate the bond regarding the period of time it was in effect.

Credits

2008, Oct. 9, P.L. 1421, No. 117, § 7, effective in 120 days [Feb. 6, 2009].
63 P.S. § 2407, PA ST 63 P.S. § 2407
Current through the end of the 2023 Regular Session. Some statute sections may be more current, see credits for details.
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