Section 3 AAC 11.090 - Surety bond required(a) An applicant for a deferred deposit advance license under AS 06.50 must file with the department a bond as required under AS 06.50.040 with at least one surety. The bond must be executed by the applicant and by a surety company authorized to conduct a surety business in the state. The bond must be submitted as required under 3 AAC 11.010(a)(9).(b) The bond must run to the benefit of the department, the Department of Law, or another person with a claim for relief because of a violation of AS 06.50 or this chapter by a licensee.(c) The bond must provide that (1) the surety shall pay the amount ordered by a court or the department to a designated beneficiary listed in (b) of this section if the licensee is found in violation of AS 06.50 or this chapter, up to the full amount of the bond, not later than 14 days after receipt of the final order;(2) the surety shall make a pro rata payment to each claimant if the amount claimed under (1) of this subsection exceeds the amount of the bond;(3) the surety shall provide written notice of an action against a bond or a final order issued against a bond by regular or electronic mail not later than 10 days after receipt;(4) immediately upon making a payment under (1) or (2) of this subsection, the surety shall provide written notice of the payment to the department by regular or electronic mail; and(5) the surety shall provide the department written notice by regular or electronic mail that a bond will be cancelled not later than 10 days before cancellation.(d) If a licensee receives notice of an action that could result in recovery against a bond, the licensee must provide the department with written notice by regular or electronic mail not later than 10 days after receipt.(e) A licensee must ensure that the full amount of a required bond is in effect continuously while the licensee is licensed and for a three-year period after the department revokes or otherwise terminates a license. If a surety makes a payment under a bond, the licensee must immediately file a new bond with the department. Failure to maintain a surety bond at the level required in this section is grounds for immediate suspension of the deferred deposit advance license under AS 06.50.300. (f) If the department receives notice of a final order of a court under (c) of this section or submits a final order of the department to the surety under (c) of this section, the department may require the deferred deposit advance licensee to file a new bond. If a new bond is required, the licensee must file a new bond in the required amount not later than 30 days after receiving notice from the department.(f) Upon receipt of a notice of cancellation from a surety, the department will notify the deferred deposit advance licensee listed as the principal on the bond through the registry. The notice will inform the licensee of the effective date of the cancellation of the bond, that the deferred deposit advance license will be suspended under AS 06.50.300 on the effective date of cancellation, and that the licensee may retain the license if the licensee furnishes the department with an equivalent bond before the effective date of the cancellation.(g) The remedies provided under this section are cumulative and nonexclusive and do not affect any other remedy available at law. Eff. 12/21/2019, Register 232, January 2020Authority:
AS 06.50.010
AS 06.50.040
AS 06.50.030
AS 06.50.310
AS 06.50.600