(1) Every applicant for registration as a credit services organization shall file with the director a corporate surety bond or irrevocable letter of credit running to the State of Oregon in the sum of $25,000. The surety bond or irrevocable letter of credit shall be issued by a surety company or an insured institution as defined in ORS 706.008 authorized to do business in this state.
(2) The surety bond or irrevocable letter of credit shall be issued on the condition that the credit services organization comply with all provisions of ORS 646A.252 to 646A.270 and fully perform on all contracts entered into with consumers.
(3) The surety bond or irrevocable letter of credit shall be continuous until canceled and shall remain in full force and unimpaired at all times to comply with this section. The surety or insured institution shall give the director at least 30 days’ written notice before it cancels or terminates its liability under the bond or irrevocable letter of credit.
(4) Any person who suffers damage as a result of a violation of any provision of ORS 646.608 and 646A.250 to 646A.270 or any rule adopted by the director pursuant to ORS 646A.252 to 646A.270 shall have a right of action under the bond or against the irrevocable letter of credit. An action on the bond or against the irrevocable letter of credit may be brought by the state or by any consumer by filing a complaint in a court of competent jurisdiction not later than one year after the surety bond or irrevocable letter of credit is canceled or terminated.
(5) The aggregate liability of the surety or issuer of the irrevocable letter of credit shall not exceed the principal sum of the bond or irrevocable letter of credit.
(6) If a credit services organization is in compliance with the surety bond or irrevocable letter of credit provisions of this section, the individual salespersons or agents or subagents of the credit services organization who sell the services of that organization shall not be required to obtain a separate surety bond or irrevocable letter of credit. [Formerly 646.388]
Section: Previous 646A.240 646A.242 646A.244 646A.250 646A.252 646A.254 646A.256 646A.258 646A.260 646A.262 646A.264 646A.266 646A.268 646A.270 646A.274 NextLast modified: August 7, 2008