75-81-121 - Bond or cash deposit as security; actions against dance studio and its surety. - Mississippi Statutes

§ 75-81-121. Bond or cash deposit as security; actions against dance studio and its surety.
 

(1)  Every dance studio shall maintain a bond issued by a surety company authorized to do business in this state. The principal sum of the bond shall be Ten Thousand Dollars ($10,000.00). 

(2)  A copy of such bond shall be filed with the office of the State Treasurer. If the person in whose name the bond is issued severs his relationship with the bonded dance studio, the new owner shall, as a condition of doing business, notify the office of the State Treasurer of the change of ownership and of proof of compliance with this chapter. 

(3)  The bond required by this section shall be in favor of the State of Mississippi for the benefit of any person who, after entering into a contract for dance studio lessons and other services with the dance studio, is damaged by fraud or dishonesty or failure to provide the services of the studio in performance of the contract. Any person claiming against the bond may maintain an action at law against the dance studio and the surety. 

(4)  The aggregate liability of the surety to all persons for all breaches of the conditions of the bonds provided herein shall in no event exceed the amount of the bond. 

(5)  In lieu of furnishing the bond required by this section the dance studio may deposit with the office of the State Treasurer a cash deposit in a like amount. This cash deposit may be satisfied by any of the following: 

(a) Certificates of deposit payable to the office of the State Treasurer issued by banks doing business in this state and insured by the Federal Deposit Insurance Corporation. 

(b) Investment certificates or share accounts assigned to the office of the State Treasurer and issued by a savings and loan association doing business in this state and insured by the Federal Savings and Loan Insurance Corporation. 

(c) Bearer bonds issued by the United States government or by this state. 

(d) Cash deposited with the office of the State Treasurer. 
 

Sources: Laws,  1985, ch. 484, § 11, eff from and after July 1, 1985.