§ 31A-35-404. Minimum financial requirements for bail bond surety company license.

(1)

(a) A bail bond surety company that pledges the assets of a letter of credit from a Utah depository institution in connection with a judicial proceeding shall maintain an irrevocable letter of credit with a minimum face value of $300,000 assigned to the state from a Utah depository institution.

(b) Notwithstanding Subsection (1)(a), a bail bond surety company described in Subsection (1)(a) that is licensed under this chapter as of December 31, 1999, shall maintain an irrevocable letter of credit with a minimum face value of $250,000 assigned to the state from a Utah depository institution.

(2)

(a) A bail bond surety company that pledges personal or real property, or both, as security for a bail bond in connection with a judicial proceeding shall maintain:

(i)

(A) a current financial statement:

(I) reviewed by a certified public accountant; and

(II) showing a net worth of at least $300,000, at least $100,000 of which is in liquid assets; or

(B) notwithstanding Subsection (2)(a)(i), if the bail bond surety company is licensed under this chapter as of December 31, 1999, a current financial statement:

(I) reviewed by a certified public accountant; and

(II) showing a net worth of at least $250,000, at least $50,000 of which is in liquid assets;

(ii) a copy of the applicant's federal income tax return for the preceding two years; and

(iii) for each parcel of real property owned by the applicant and included in net worth calculations:

(A) a title letter; and

(B) an appraisal dated not more than two years prior to the date of application.

(b) For purposes of this Subsection (2), only real or personal property located in Utah may be included in the net worth of the bail bond surety company.

(3) A bail bond surety company shall maintain a qualifying power of attorney issued by a surety insurer:

(a) if the bail bond surety company is the agent of the surety insurer; and

(b) the surety insurer:

(i) issues bail bonds;

(ii) is in good standing in its state of domicile; and

(iii) is granted a certificate to write bail bonds in Utah.

(4) The commissioner may revoke the license of a bail bond surety company that fails to maintain the minimum financial requirements required under this section.

(5) The commissioner may set by rule the limits on the aggregate amounts of bail bonds issued by a bail bond surety company.

Amended by Chapter 259, 2000 General Session