2001 Minnesota Statutes

     325A.06 Financial requirements. 

    Subdivision 1.  Every invention developer rendering, 
 offering to render, or advertising invention development 
 services in this state shall maintain a continuous corporate 
 surety 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 $50,000, 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, offers to 
 render, or advertises invention development services in this 
 state.  The secretary of state shall maintain a list of all 
 outstanding bonds filed under this subdivision.  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. Repealed, 2001 c 190 s 5 

    HIST: 1977 c 288 s 6; 2001 c 190 s 2