31A-35-404 - Minimum financial requirements for bail bond surety company license. - Utah Statutes

31A-35-404. Minimum financial requirements for bail bond surety companylicense.
(1) (a) A bail bond surety company that pledges the assets of a letter of credit from aUtah depository institution in connection with a judicial proceeding shall maintain an irrevocableletter of credit with a minimum face value of $300,000 assigned to the state from a Utahdepository institution.
(b) Notwithstanding Subsection (1)(a), a bail bond surety company described inSubsection (1)(a) that is licensed under this chapter as of December 31, 1999, shall maintain anirrevocable letter of credit with a minimum face value of $250,000 assigned to the state from aUtah depository institution.
(2) (a) A bail bond surety company that pledges personal or real property, or both, assecurity for a bail bond in connection with a judicial proceeding shall maintain:
(i) (A) a current financial statement:
(I) reviewed by a certified public accountant; and
(II) showing a net worth of at least $300,000, at least $100,000 of which is in liquidassets; or
(B) notwithstanding Subsection (2)(a)(i), if the bail bond surety company is licensedunder this chapter as of December 31, 1999, a current financial statement:
(I) reviewed by a certified public accountant; and
(II) showing a net worth of at least $250,000, at least $50,000 of which is in liquid assets;
(ii) a copy of the applicant's federal income tax return for the preceding two years; and
(iii) for each parcel of real property owned by the applicant and included in net worthcalculations:
(A) a title letter; and
(B) an appraisal dated not more than two years prior to the date of application.
(b) For purposes of this Subsection (2), only real or personal property located in Utahmay be included in the net worth of the bail bond surety company.
(3) A bail bond surety company shall maintain a qualifying power of attorney issued by asurety insurer:
(a) if the bail bond surety company is the agent of the surety insurer; and
(b) the surety insurer:
(i) issues bail bonds;
(ii) is in good standing in its state of domicile; and
(iii) is granted a certificate to write bail bonds in Utah.
(4) The commissioner may revoke the license of a bail bond surety company that fails tomaintain the minimum financial requirements required under this section.
(5) The commissioner may set by rule the limits on the aggregate amounts of bail bondsissued by a bail bond surety company.

Amended by Chapter 259, 2000 General Session