AN ACT RELATIVE TO THE AMOUNT OF SURETY BOND REQUIRED FOR A COLLECTION AGENCY LICENSE SUBJECT TO THE SUPERVISION OF THE COMMISSIONER OF BANKS.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Section 25 of chapter 93 of the General Laws is hereby amended by
striking out the second sentence, as amended by chapter 652 of the acts of
1971, and inserting in place thereof the following four sentences:- Such
bond shall be in the sum of ten thousand dollars for the initial license.
The amount of the bond upon renewal of any license shall be in the amount
of ten thousand dollars, or two times the average monthly net collections
received from commonwealth debtors or due to commonwealth creditors paid
directly to the collection agency for the preceding year computed to the
next highest one thousand dollars, whichever sum is greater,
but in no event more than twenty-five thousand dollars. Each
application for renewal shall be accompanied by a statement of the
preceding year's net collections. Such bond shall provide that the person
giving the same, shall, upon written demand, pay and turn over to or for
the person whom any account, bill or other indebtedness is taken for
collection the proceeds of such collection in accordance with the terms of
the agreement upon which it was received for collection.