Code of the District of Columbia

§ 26–306. Bond to accompany application for license.

(a) At the time of filing an application under this chapter, each applicant shall file with the Superintendent [Commissioner of Insurance, Securities, and Banking] a bond in the sum of $5,000 for each location and mobile unit from which the applicant proposes in the application to conduct business. The bond shall be issued by a person authorized to issue such bonds in the District and shall be in a form satisfactory to the Superintendent [Commissioner]. To satisfy the requirements of this section, the bond shall be effective on the date the license is issued by the Superintendent [Commissioner] and run to the Superintendent [Commissioner] for the use of the District. The applicant shall be the obligor of the bond. The bond must be conditioned upon the observance by the applicant of all the provisions of this chapter and of all rules and regulations lawfully made by the Superintendent [Commissioner] hereunder, and must be for the benefit of the District concerning any and all monies that become due or owing to the District from the applicant under this chapter as well as for the benefit of any private claimants against the applicant with respect to the cashing of checks in the District. The surety on the bond shall have the right to cancel such bond upon giving 30 days written notice to the Superintendent [Commissioner] and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation. Any license issued pursuant to this chapter shall be revoked, and void, by operation of law during any period when the bond required by this section is not in full force and effect.

(b) If the Superintendent [Commissioner], at any time, reasonably determines that the bond is insecure, deficient in amount, or exhausted in whole or in part, or if the surety on the bond has notified the Superintendent [Commissioner] of its intention to cancel the bond, the Superintendent [Commissioner] may, by written order, require the filing of a new or supplemental bond in order to secure compliance with this chapter. The licensee shall comply with the order within 20 days following service of the order upon the licensee.