2003 Minnesota Statutes

     332.15 License. 

    Subdivision 1.    Form.  Application for a license to 
 operate a debt prorating service in this state shall be made in 
 writing to the commissioner, under oath, in the form prescribed 
 by the commissioner, and shall contain the full name and address 
 of the applicant, the business to be conducted, and, if the 
 applicant is a partnership or association, of every member 
 thereof and, if a corporation, of each officer, director and 
 shareholder owning more than five percent of outstanding common 
 stock thereof and such other information and material as the 
 commissioner may require.  

    Subd. 2.    License for each location.  Each person 
 operating a debt prorating service shall obtain a license for 
 each location and place of business, including each branch 
 office.  Such person shall submit a separate application for 
 each place of business.  The full license fee shall be payable 
 only for one such place of business.  For each additional place 
 of business the license fee shall be $100.  

    Subd. 3.    Fees.  Each applicant, at the time of making 
 such application, shall pay to the commissioner the sum of $100 
 as a fee for investigation of the applicant, and the additional 
 sum of $250 as a license fee.  If the application is denied, 
 said license fee shall be returned to the applicant.  

    Subd. 4.    Bond.  Every applicant shall submit to the 
 commissioner at the time of the application for a license, a 
 surety bond in which the applicant shall be the obligor, in a 
 sum to be determined by the commissioner but not less than 
 $5,000, and in which an insurance company, which is duly 
 authorized by the state of Minnesota to transact the business of 
 fidelity and surety insurance, shall be a surety; provided, 
 however, the commissioner may accept a deposit in cash, or 
 securities such as may legally be purchased by savings banks or 
 for trust funds of an aggregate market value equal to the bond 
 requirement, in lieu of the surety bond, such cash or securities 
 to be deposited with the commissioner of finance.  The 
 commissioner may also require a fidelity bond in an appropriate 
 amount covering employees of any applicant.  Each branch office 
 or additional place of business of an applicant shall be bonded 
 as provided herein.  In determining the bond amount necessary 
 for the maintenance of any office be it surety, fidelity or both 
 the commissioner shall consider the financial responsibility, 
 experience, character and general fitness of the agency and its 
 operators and owners; the volume of business handled or proposed 
 to be handled; the location of the office and the geographical 
 area served or proposed to be served; and such other information 
 the commissioner may deem pertinent based upon past performance, 
 previous examinations, annual reports and manner of business 
 conducted in other states. 

    Subd. 5.    Condition of bond.  The applicant shall be 
 the obligor.  The bond shall run to the state of Minnesota for 
 the use of the state and of any person or persons who may have a 
 cause of action against the obligor arising out of the obligor's 
 activities as a debt prorater.  Such bond shall be conditioned 
 that said obligor will not commit any fraudulent act and will 
 faithfully conform to and abide by the provisions of sections 
 332.12 to 332.29 and of all rules lawfully made by the 
 commissioner hereunder and pay to the state and to any such 
 person or persons any and all money that may become due or owing 
 to the state or to such person or persons from said obligor 
 under and by virtue of the provisions of sections 332.12 to 
 332.29.  

    Subd. 6.    Right of action on bond.  If the licensee 
 has failed to account to a debtor or distribute to the debtor's 
 creditors such amounts as are required by sections 332.12 to 
 332.29 and the contract between the debtor and licensee, the 
 debtor or the debtor's legal representative or receiver, the 
 commissioner or the attorney general, shall have, in addition to 
 all other legal remedies, a right of action in the name of the 
 debtor on the bond or the security given pursuant to the 
 provisions of this section, for loss suffered by the debtor, not 
 exceeding the face of the bond or security, and without the 
 necessity of joining the licensee in such suit or action.  

    HIST: 1969 c 1120 s 4; 1971 c 441 s 1; 1985 c 248 s 70; 1986 c 
 444; 1992 c 564 art 4 s 15; 1999 c 151 s 43,44; 2003 c 112 art 2 
 s 50