44-1708 - Arizona Statutes

44-1708. Surety bond; procedures to obtain or establish; claim by action at law; limit of liability A. If a credit services organization is required to obtain a surety bond pursuant to section 44-1703, the following procedures apply: 1. A copy of the bond shall be filed with the corporation commission. 2. The bond required shall be in favor of this state for the benefit of any person who is damaged by any violation of this article. The bond shall also be in favor of any person damaged by the practices. 3. A person claiming against the bond for a violation of this article may maintain an action at law against the credit services organization and against the surety. B. The surety is liable only for actual damages and not the punitive damages permitted under section 44-1711. The aggregate liability of the surety to all persons damaged by a credit services organization's violation of this article shall in no event exceed the amount of the bond. C. The bond shall be in an amount equal to five per cent 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 the buyers during the previous twelve months, but in no case shall the bond be less than five thousand dollars or more than twenty-five thousand dollars. 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.