559.807 Bond or other security required. - Florida Statutes

559.807 Bond or other security required.

   (1) If the business opportunity seller makes any representations set forth in s. 559.801(1)(a)3., the seller must either have obtained a surety bond issued by a surety company authorized to do business in this state or have established a certificate of deposit or a guaranteed letter of credit with a licensed and insured bank or savings institution located in the state. The amount of the bond, certificate of deposit, or guaranteed letter of credit shall be an amount not less than $50,000.

   (2) The bond, certificate of deposit, or guaranteed letter of credit shall be in the favor of the department for the use and benefit of any person who is injured by the fraud, misrepresentation, breach of contract, financial failure, or violation of any provision of this part by the seller. Such liability may be enforced by filing an action at law in a court of competent jurisdiction without precluding enforcement in an administrative action pursuant to chapter 120. However, the bond, certificate of deposit, or guaranteed letter of credit shall be amenable and enforceable only by and through administrative proceedings before the department. A money judgment resulting from an action at law, less any award for costs and attorney’s fees, shall be prima facie evidence sufficient to establish the value of the claim in an administrative action. It is the intent of the Legislature that such bond, certificate of deposit, or guaranteed letter of credit shall be applicable and liable only for payment of claims duly adjudicated by order of the department. The bond, certificate of deposit, or guaranteed letter of credit shall be open to successive claims but the aggregate amount may not exceed the amount of the bond, certificate of deposit, or guaranteed letter of credit.

History. s. 1, ch. 79-374; s. 85, ch. 92-291; s. 65, ch. 2000-154; s. 13, ch. 2001-214.