Fla. Admin. Code Ann. R. 61B-60.004 - Bond and Irrevocable Letter of Credit
(1) Applications for licensure as a broker or
a salesperson shall be accompanied by a good and sufficient surety bond or
irrevocable letter of credit.
(2)
Requirements of bonds and letters of credit.
(a) All bonds and letters of credit:
1. Shall provide coverage during each
licensing period of 2 years. Upon renewal of a license, a new bond or letter of
credit or a proper continuation certificate corresponding to the licensing
period shall be delivered to the division.
2. Shall remain on deposit 1 year beyond the
2 year coverage period. In the event that a broker or salesperson ceases to be
licensed, the bond or letter of credit shall remain on deposit with the
division for a period of 1 year after the license expires or is terminated and
will remain subject to claims arising out of conduct occurring during the
period of licensure.
3. Shall
reference by name the broker or salesperson, and shall indicate the complete
business address of the broker's principal place of business.
4. Shall be written for the aggregate amount
of $25, 000 for a broker and $10, 000 for a salesperson.
5. Shall be conditioned upon compliance by
the broker with the conditions of any written contract made by such broker or
salesperson in connection with the sale or exchange of any yacht or
ship.
6. Shall be in favor of any
person in a transaction who suffers any loss as a result of any violation of
the provisions of Chapter 326, F.S.
(b) Additional requirements of surety bonds.
1. The bond shall be delivered to the State
of Florida, Department of Business and Professional Regulation, Division of
Florida Condominiums, Timeshares, and Mobile Homes, Section of Yacht and Ship
Brokers, at the address given in subsection
61B-60.002(1),
F.A.C.
2. The bond shall be
executed by a surety company authorized to do business in the State of
Florida.
3. The bond shall provide
that thirty days notice shall be given by the surety to the division before
termination of the bond. Notice shall be sent by certified mail to the division
of the intended termination, and upon receipt of the notice, the division shall
in turn notify the licensee.
(c) Additional requirements of letters of
credit. The letter of credit shall be executed by an officer of a federal or
state chartered financial institution which is authorized to do business in the
State of Florida.
(3) If
a surety notifies the division that it is no longer the surety for a licensee,
the division shall notify the licensee of such withdrawal by certified mail,
return receipt requested, addressed to the licensee's principal office. Upon
the termination of the surety bond, the licensee's license is automatically
suspended until he files a new bond or letter of credit with the
division.
Notes
Specific Authority 326.003 FS. Law Implemented 326.004 FS.
New 2-13-90, Amended 11-25-90, 8-28-91, Formerly 7D-60.004, Amended 3-13-02.
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