1997 Minnesota Statutes

     325A.06 Financial requirements. 

    Subdivision 1.  Every invention developer rendering or 
 offering to render invention development services in this state 
 shall maintain a bond issued by a surety admitted to do business 
 in this state, and equal to either ten percent of the invention 
 developer's gross income from the invention development business 
 in this state during the invention developer's preceding fiscal 
 year, or $25,000, whichever is larger.  A copy of the bond shall 
 be approved by the attorney general and filed with the secretary 
 of state before the invention developer renders or offers to 
 render invention development services in this state.  The 
 invention developer shall have 90 days after the end of each 
 fiscal year within which to change the bond as may be necessary 
 to conform to the requirements of this subdivision. 

    Subd. 2.  The bond required by subdivision 1 shall be in 
 favor of the state of Minnesota for the benefit of any person 
 who, after entering into a contract for invention development 
 services with an invention developer, is damaged by fraud or 
 dishonesty of the invention developer in performance of the 
 contract, by the insolvency or the cessation of business by the 
 invention developer or by the intentional violation of sections 
 325A.01 to 325A.10 by the invention developer.  Any person 
 claiming against the bond may maintain an action at law against 
 the invention developer and the surety company. 

    The aggregate liability of the surety company to all 
 persons for all breaches of conditions of the bond shall in no 
 event exceed the amount of the bond. 

    Subd. 3.  In lieu of the bond required by subdivision 1 the 
 invention developer may deposit with the state treasurer a cash 
 deposit in the like amount.  The state treasurer shall not 
 refund a deposit until 60 days after either the invention 
 developer has ceased doing business in the state or a bond has 
 been filed which complies with subdivisions 1 and 2. 

    HIST: 1977 c 288 s 6