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    Subdivision 1. Form. Application for registration to operate as a debt management services
provider in this state must be made in writing to the commissioner, under oath, in the form
prescribed by the commissioner, and must contain:
    (1) the full name of each principal of the entity applying;
    (2) the address, which must not be a post office box, and the telephone number and, if
applicable, e-mail address, of the applicant;
    (3) identification of the trust account required under section 332A.13;
    (4) consent to the jurisdiction of the courts of this state;
    (5) the name and address of the registered agent authorized to accept service of process on
behalf of the applicant or appointment of the commissioner as the applicant's agent for purposes
of accepting service of process;
    (6) disclosure of:
    (i) whether any controlling or affiliated party has ever been convicted of a crime or found
civilly liable for an offense involving moral turpitude, including forgery, embezzlement, obtaining
money under false pretenses, larceny, extortion, conspiracy to defraud, or any other similar
offense or violation, or any violation of a federal or state law or regulation in connection with
activities relating to the rendition of debt management services or involving any consumer fraud,
false advertising, deceptive trade practices, or similar consumer protection law;
    (ii) any judgments, private or public litigation, tax liens, written complaints, administrative
actions, or investigations by any government agency against the applicant or any officer, director,
manager, or shareholder owning more than five percent interest in the applicant, unresolved or
otherwise, filed or otherwise commenced within the preceding ten years;
    (iii) whether the applicant or any person employed by the applicant has had a record of
having defaulted in the payment of money collected for others, including the discharge of debts
through bankruptcy proceedings; and
    (iv) whether the applicant's license or registration to provide debt management services in
any other state has ever been revoked or suspended;
    (7) a copy of the applicant's standard debt management services agreement that the applicant
intends to execute with debtors;
    (8) proof of accreditation; and
    (9) any other information and material as the commissioner may require.
    Subd. 2. Term and scope of registration. The registration must remain in full force and
effect for one year or until it is surrendered by the registrant or revoked or suspended by the
commissioner. The registration is limited solely to the business of providing debt management
    Subd. 3. Fees. The registration application must be accompanied by payment of $1,000
as a registration fee.
    Subd. 4. Bond. The registration application must be accompanied by payment of the
premium for 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. However, the commissioner may accept a deposit in cash, or securities that 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. The cash or securities must 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
in this state of an applicant must be bonded as provided in this subdivision. In determining the
bond amount necessary for the maintenance of any office, whether it is a surety bond, fidelity
bond, or both, the commissioner shall consider the financial responsibility, experience, character,
and general fitness of the debt management services provider 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 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 bond must 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 management services provider to a debtor domiciled in this
state. The bond must be conditioned that the obligor will not commit any fraudulent act and will
faithfully conform to and abide by the provisions of this chapter and of all rules lawfully made by
the commissioner under this chapter 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 the
obligor under and by virtue of this chapter.
    Subd. 6. Right of action on bond. If the registrant has failed to account to a debtor
or distribute to the debtor's creditors the amounts required by this chapter and the debt
management services agreement between the debtor and registrant, 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
under this section, for loss suffered by the debtor, not exceeding the face amount of the bond or
security, and without the necessity of joining the registrant in the suit or action.
    Subd. 7. Registrant list. The commissioner must maintain a list of registered debt
management services providers. The list must be made available to the public in written form
upon request and on the Department of Commerce Web site.
History: 2007 c 57 art 3 s 47

Official Publication of the State of Minnesota
Revisor of Statutes