Okla. Admin. Code § 80:10-3-5

Current through Vol. 42, No. 6, December 2, 2024

Section 80:10-3-5 - Bonds required for Permits and Certificates of Authority

Each application for a Certificate of Authority shall be accompanied by a bond concerning county records and either a bond or insurance to pay damages for possible errors in abstracts prepared by the abstract company. Each application for a Permit shall be accompanied by a bond concerning county records only.

(1)County records bond.

(A) The bond shall be valid for one (1) year and extend coverage to the various county offices for damages by reason of mutilation, injury or destruction of any record or records of the several county offices to which the applicant may have access.

(B) If a surety bond is provided it shall be issued by a surety company licensed to do business in the State of Oklahoma.

(C) The original bond shall be filed in the office of the Registrar and said office shall mail a certified copy of the bond to the County Clerk's office for filing.

(2)Errors and omissions bond. If coverage for damages for possible errors in abstracts prepared by the abstract company will be by bond then the bonds shall be on forms either prescribed by, or approved in advance by the Registrar.

(A) Either personal or surety bonds that satisfy the requirements of 74 O.S. Section 227.14(C) and the rules of this Chapter will be accepted by the Auditor.

(B) A personal bond must provide that the Certificate of Authority or Permit Holder be the obligor and that the Auditor be the obligee. The personal bond, conditioned on the obligor performing its duties without error, must be accompanied by either cash or a Certificate of Deposit delivered to the Registrar.

(C) A Certificate of Deposit must be issued by a federally insured financial institution in the State of Oklahoma and must have a maturity term of a minimum of one year. The Certificate of Deposit shall either show on its face the Auditor as its holder or it shall be endorsed in his favor. The original Certificate of Deposit shall be delivered to the Auditor with an executed personal bond form. Interest on such Certificate of Deposit shall be paid to the obligor. Payment to a third party will be allowed on a personal bond upon presentation of either a final order of a District Court of the State of Oklahoma finding that the conditions of the bond have not been met, or upon written settlement with the obligor. Prior to payment unless the obligor presents to the Registrar either a surety bond or an alternative method of securing the personal bond equal to the amount of the claim against the bond the Registrar shall take action to suspend the certificate of authority of the obligor.

(D) The personal bond and a facsimile of the Certificate of Deposit become part of the file of the Certificate of Authority Holder or Permit Holder for whom they are given. These documents are available for examination and copying by the public.

Okla. Admin. Code § 80:10-3-5

Amended at 9 Ok Reg 2705, eff 7-13-92; Amended at 11 Ok Reg 3661, eff 7-11-94