12-1-2 - Amount of bond -- Conditions -- Right of action.
12-1-2. Amount of bond -- Conditions -- Right of action.
(1) The bond shall be for the sum of $10,000, payable to the state of Utah.
(2) The bond shall provide that the person giving it shall, upon written demand, remit thecollection proceeds to or for the person for whom any account, bill, or other indebtedness is takenfor collection in accordance with the collection agreement. The Division of Corporations andCommercial Code may specify the form of the bond and may require it to contain additionalprovisions and conditions it considers necessary or proper to protect the persons for whom thecollection is undertaken.
(3) If a bond becomes forfeited or the sureties for it become liable upon it, any personinjured by the acts of forfeiture or by the acts resulting in the sureties' liability, or who by law isentitled to the benefit of the security, may maintain an action on the bond in his own name againstthe person giving the bond and against the sureties to recover the amount of the bond to which hemay be entitled. One recovery does not bar recoveries for other breaches of the bond so long asthe sureties are liable in the aggregate only to the extent of the undertaking.
Amended by Chapter 213, 1993 General Session