1999 Legislation
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HOUSE BILL NO. 71 – Collection agcy, bond req’d, incr

HOUSE BILL NO. 71

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Daily Data Tracking History



H0071........................................................by MR. SPEAKER
                    Requested by Department of Finance
COLLECTION AGENCIES - Amends existing law to increase the amount of the
bond required for collection agencies from $5,000 to $15,000.

01/11    House intro - 1st rdg - to printing
01/11    Rpt prt - to Bus

Bill Text


H0071

                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 71

                                      BY MR. SPEAKER
                           Requested by: Department of Finance

 1                                        AN ACT
 2    RELATING TO BONDS OF COLLECTION  AGENCIES;  AMENDING  SECTION  26-2232,  IDAHO
 3        CODE,  TO  INCREASE  THE AMOUNT OF THE BOND EXECUTED TO THE STATE OF IDAHO
 4        FROM FIVE TO FIFTEEN THOUSAND DOLLARS AND TO MAKE A TECHNICAL CORRECTION.

 5    Be It Enacted by the Legislature of the State of Idaho:

 6        SECTION 1.  That Section 26-2232, Idaho Code, be, and the same  is  hereby
 7    amended to read as follows:

 8        26-2232.  BONDS.  Upon  approval of the application and prior to the issu-
 9    ance of the permit the applicant must file in the department  of  finance  two
10    (2)  bonds.  Both bonds shall be in a form provided by the attorney general of
11    this state, and shall be executed by the applicant as principal  and  by  some
12    surety company authorized to do business in this state as surety, and shall be
13    for  the  term  of any permit issued to the applicant. Each permittee shall be
14    required to have the two (2) bonds for each permit as hereinafter provided. In
15    lieu of the bonds required by this section, a certificate of deposit issued by
16    an Idaho bank and made payable to the director may be provided to the director
17    in the same principal amount as required for bonds. The interest on  the  cer-
18    tificate  of  deposit  shall  be  payable to the permittee. The certificate of
19    deposit shall be maintained at all times during which the permittee is  autho-
20    rized  to do business under Idaho law, and must provide that it will remain in
21    effect for at least three (3) years following  discontinuance  of  operations,
22    unless  released  earlier by the director when all statutory requirements have
23    been met.
24        (a)  A bond shall be executed to the state of Idaho in the  sum  of  
25    five      fifteen  thousand dollars ($ 1 5,000) or
26    upon renewal in such larger sum as hereinafter provided. In any case  where  a
27    permittee  or  its  representatives has failed to account for and pay over the
28    proceeds of any collection made or money received for payment or prorating  to
29    creditors,  or  has failed to return to a debtor any sum received that was not
30    to be applied to his debts, the creditor or debtor shall have in  addition  to
31    all  other legal remedies a right of action in his own name on such bond with-
32    out the necessity of joining the permittee in such action. The bond  shall  be
33    continuous  in  form  and shall remain in full force and effect for the permit
34    period. The surety may cancel the bond provided that the surety shall in  such
35    event  provide  the permittee and the  commissioner   director
36     with notice thirty (30) days prior to cancelation of  said  bond.  Such
37    notice  shall  be  by  registered  or certified mail with request for a return
38    receipt and addressed to the permittee at its main office and to the director.
39    In no event shall the liability of the surety for any and all  claims  against
40    the bond exceed the face amount of such bond.
41        Upon renewal of any permit, the permittee shall supply the director with a
42    statement of the preceding year's net collections. The amount of the bond upon
43    renewal  shall  be in the amount of five thousand dollars ($5,000), or two (2)


                                          2

 1    times the average monthly net collections for the preceding year  computed  to
 2    the  next  highest one thousand dollars ($1,000), whichever sum is greater, up
 3    to a maximum of one hundred thousand dollars ($100,000).
 4        (b)  A bond shall be executed to the state of Idaho  in  the  sum  of  two
 5    thousand  dollars  ($2,000),  which shall be limited to the indemnification of
 6    the department of finance for any and all expenses incurred  as  a  result  of
 7    investigations,  administrative  proceedings,  and prosecutions which shall be
 8    instituted by the director against a permittee or licensee  pursuant  to  this
 9    act.  The bond shall be continuous in form and remain in full force and effect
10    and run concurrently with the permit  period  and  any  renewal  thereof.  The
11    surety  may cancel the bond provided  that the surety shall in such event pro-
12    vide the permittee and the director with notice  thirty  (30)  days  prior  to
13    cancelation  of  said  bond. Such notice shall be registered or certified mail
14    with request for a return receipt and addressed to the permittee at  its  main
15    office  and to the director. In no event shall the liability of the surety for
16    any and all claims against the bond exceed the face amount of such bond.

Statement of Purpose / Fiscal Impact


                      STATEMENT  OF  PURPOSE
RS08425
This legislation amends the Idaho Collection Agency Act to increase
the amount of the bond required (from $5,000 to $15,000) in order
to afford greater protection to collection agency customers.






FISCAL  IMPACT
None.





CONTACT   
Name:          Kelly Robison
Agency:   Idaho Department of Finance
Phone:         332-8032

Statement of Purpose/Fiscal Impact                           H 7