407.639. Copy of bond to be filed with director of finance--purpose of bond--amount of bond--statement by director of finance. - Missouri Statutes

Copy of bond to be filed with director of finance--purpose ofbond--amount of bond--statement by director of finance.

407.639. 1. This section applies to a credit services organizationrequired by subdivision (1) of section 407.638 to obtain a surety bond orestablish a surety account.

2. If a bond is obtained, a copy of it shall be filed with the directorof finance. If a surety account is established, notification of thedepository, the trustee and the account number shall be filed with thedirector of finance.

3. The bond or surety account required shall be in favor of the statefor the benefit of any person who is damaged by any violation of sections407.635 to 407.644. The bond or surety account shall also be in favor of anyperson damaged by such a violation.

4. Any person claiming against the bond or surety account for aviolation of sections 407.635 to 407.644 may maintain an action at law againstthe credit services organization and against the surety or trustee. Thesurety or trustee shall be liable only for damages awarded under subdivision(1) of subsection 1 of section 407.644 and not the punitive damages permittedunder that section. The aggregate liability of the surety or trustee to allpersons damaged by a credit services organization's violation of this chaptermay not exceed the amount of the surety account or bond.

5. The bond or the surety account shall be in the amount of ten thousanddollars.

6. A depository holding money in a surety account under sections 407.635to 407.644 shall not convey money in the account to the credit servicesorganization that established the account or a representative of the creditservices organization unless the credit services organization orrepresentative presents a statement issued by the director of financeindicating that section 407.640* has been satisfied in relation to the creditservices organization. The director of finance may conduct investigations andrequire submission of information as is necessary to enforce this section.

7. The bond or surety account shall be maintained until two years afterthe date that the credit services organization ceases operations.

(L. 1991 S.B. 112 § 4)

*Original rolls contain reference to "subsection 6 of section 5" (407.640), an apparent typographical error since section 407.640 does not contain a subsection 6. All of section 407.640 seems germane to the original reference.