Loss of certificate of authority or license by seller; notice to
purchaser; selection of new seller; transfer of unperformed
contracts and funds to successor owner
Sec. 15. (a) If a seller:
(1) ceases to have a certificate of authority or loses a
professional license required to provide services under this
chapter;
(2) ceases to exist or operate;
(3) is incapable of performing the seller's obligations under an
unperformed contract for any reason; or
(4) sells or leases the seller's business, facilities, or assets;
the seller shall give notice to the board and to each purchaser for
whom funds are held in a trust or escrow under this chapter. The
notice shall specify the reason for the issuance of the notice.
(b) The seller's written notice under subsection (a) must be:
(1) addressed to the purchaser's last known address; and
(2) mailed within fifteen (15) days after the seller becomes
incapable of performing the obligations under the contract.
(c) A purchaser who receives a notice under subsection (a) has
thirty (30) days after the date the notice was mailed by the seller to
select and designate a new seller under section 13 of this chapter to
become the beneficiary of the trust or the designated recipient of the
escrow funds. The first seller shall send written notice of the
designation of a new seller to the newly designated seller or to the
trustee.
(d) A seller shall transfer all unperformed contracts and funds
held in trust or escrow under this chapter to the seller who is the
successor owner or lessee of the transferring seller. The successor
seller shall perform all contracts transferred under this subsection.
(e) If a purchaser fails to designate a new seller, the designation
shall be made by the board.
As added by P.L.200-1991, SEC.1. Amended by P.L.241-1995,
SEC.10; P.L.114-1999, SEC.12.
Last modified: May 27, 2006