Section 101-05-01-04 - Surety bondThe applicant shall provide evidence of a surety bond with one or more corporate sureties authorized to do business in this state or an irrevocable letter of credit issued by an insured institution in the amount of twenty-five thousand dollars at the time of application.
1. The surety bond, subject to investigation or review by a court of record, must be conditioned that the applicant pays: a. All amounts owing to persons who perform real estate appraisal services for the appraisal management company.b. All amounts adjudged against the appraisal management company by reason of negligent or improper real estate appraisal services or appraisal management services or breach of contract in performing real estate appraisal services or appraisal management services.c. Amounts owed to the board for national registry fees, initial registration and annual renewal fees, late filing fees, and change of information fees.2. The surety bond must require the surety company to provide written notice to the board by registered or certified mail at least thirty days before the surety company cancels or revokes the bond, and within thirty days after the surety company pays for a loss under the bond.3. The surety bond required by this section must be continuously on file with the board in the amount of twenty-five thousand dollars and is for the exclusive purpose of payment of the obligations listed in subsection 1. Upon termination or cancellation of the bond or reduction of the bond amount to less than twenty-five thousand dollars, a registered appraisal management company alternatively shall: a. File a replacement bond within the time period established by the board by rule; orb. Surrender the company's registration to the board and cease operating as an appraisal management company.4. Any person damaged by an appraisal management company's failure to pay an obligation listed in subsection 1 of this section has a right of action against the bond.5. Termination or cancellation of the surety bond does not terminate, cancel, or limit the liability of the issuer of the surety bond or letter of credit for any and all claims against the surety bond to satisfy a final order of a court of competent jurisdiction in an action that was commenced prior to the cancellation of the surety bond.N.D. Admin Code 101-05-01-04
Adopted by Administrative Rules Supplement 367, January 2018, effective 1/1/2018.General Authority: NDCC 43-23.5-02
Law Implemented: NDCC 43-23.5-19; 12 CFR 1102.403