§436M-2 Bond. (a) Except as provided in subsection (e), each alarm business shall keep in force a surety bond in the sum of $5,000 during its first five years of operation. The bond shall be in effect from the date that the alarm business begins selling its products or services and shall be continuously maintained for a period of five years from that date.
(b) The bond shall provide for payment, up to the limit of the bond, to any person who is injured or aggrieved or who has sustained loss or damage by the alarm business' violation of any provision of this chapter or any consumer protection statute, or the business' failure to faithfully, promptly, and truly refund all fees which were illegally or incorrectly obtained from its customers.
(c) The bond shall give the injured or aggrieved party a direct and independent action on the bond for a period of one year from the date the loss or damage occurred.
(d) An alarm business that has completed five or more continuous years of operation on November 8, 1986, shall not be required to maintain a bond. An alarm business that has completed less than five continuous years of operation on November 8, 1986, shall maintain the bond for the remainder of its first five years of operation.
(e) An alarm business shall not be required to maintain a bond if it is engaged only in selling alarm systems and does not provide any of the other services listed in the definition of "alarm business" in section 436M-1. [L 1986, c 134, pt of §1]
Revision Note
"November 8, 1986" substituted for "the date this Act takes effect".
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