44-1797.02 - Arizona Statutes

44-1797.02. Bond; beneficiaries; actions; liability; cancellation A. The bond required by section 44-1797.01 shall be in favor of this state to be held in trust by the state treasurer for the benefit of any person who suffers financial damage as a result of any violation of this article or by fraud or dishonesty or failure to provide the services of the discount buying organization in the performance of the contract. Any person making a claim against the bond may maintain an action against the discount buying organization and the surety, except that the surety is liable only for the actual damages plus restitution and not the treble damages permitted under section 44-1797.16. The surety bond may be sued upon successive actions until the full amount is exhausted. A person may not commence suit on the bond after the expiration of four years following the act or omission on which the suit is based. Subject to the limitations in this article, a surety shall be liable for damages for any act or omission occurring during the time its bond is in effect. B. The aggregate liability of the surety to all persons for all breaches of the conditions of the bond provided in this section may not exceed the amount of the bond. C. A surety for any cause may cancel the bond by giving sixty days' written notice of the cancellation to the state treasurer, attorney general and the discount buying organization. The surety shall give the notice by certified mail. On or before the effective date of the cancellation of the bond, the discount buying organization shall either obtain a new bond which meets the requirements of this section and section 44-1797.01 and file a copy of the new bond with the state treasurer or make a cash deposit in lieu of a bond as provided in section 44-1797.03.