Fidelity bond
20 Fidelity bond
Before a licensee carries on the business or carries out the functions of a debt collector, the licensee must lodge with the Commissioner the fidelity bond or approved security referred to in subsection (2).
A licensee must not carry on the business or carry out the functions of a debt collector unless the licensee has in force the fidelity bond or approved security referred to in subsection (2).
The fidelity bond shall be a bond in the form prescribed in the sum —
in the case of a corporation whether in partnership or otherwise, of $10 000, or such greater sum as may be prescribed:
in the case of a natural person who proposes to act as or carry on the business of a debt collector on his own account or in partnership with another natural person or natural persons, of $6 000, or such greater sum as may be prescribed,
from some insurance company approved by the Minister and the security referred to in subsection (1) shall be to the same amount as would be required in the case of a fidelity bond and in a form approved by the Minister, and the fidelity bond and security shall be conditioned for duly accounting to the persons entitled thereto for any trust money.
[Section 20 amended: No. 113 of 1965 s. 8; No. 55 of 2004 s. 228; No. 7 of 2022 s. 19.]
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