N.J. Admin. Code § 13:45B-2.3

Current through Register Vol. 56, No. 21, November 4, 2024

Section 13:45B-2.3 - Bond required

(a) Before an Employment Agency License is issued, the applicant shall deposit with the Director an original bond in the sum of $ 10,000, with a duly authorized surety company as surety, to be approved by the Director.

(b) The bond shall be payable to the State of New Jersey with the condition that the person applying for the license will comply with the Act and will pay all damages occasioned to any person by reason of any misrepresentation, deceptive or misleading act or practice or any unlawful act or omission of any licensed person, agents, or employees, while acting within the scope of their employment, made, committed, or omitted in the business conducted under the license or caused by any violation of the Act and this chapter in carrying on the business for which the license is granted. In case of a breach of the condition of any bond, application may be made to the Director by the person injured by the breach for leave to sue upon the bond, which leave shall be granted by the Director if it is proven to his or her satisfaction that the condition of the bond has been breached and the person has been injured. The person obtaining leave to sue shall be furnished with a certified copy of the bond and shall be authorized to institute suit on the bond in his or her name for the recovery of damages sustained by the breach.

(c) If at any time, in the opinion of the Director, the surety on any bond shall become financially irresponsible, the person holding the license shall, upon notice by registered mail, return receipt requested from the Director, provide a new bond, subject to the provisions of this section. Failure to provide a new bond within 10 days after such notice shall operate at the direction of the Director automatically as revocation of the registration. The 10 days shall begin to run on the day following the surety's receipt of the notice. However, revocation may be stayed at the discretion of the Director.

(d) If the surety contemplates cancellation of the bond, the surety shall be withdrawn upon 60 days advance written notice by registered mail to the Director, the 60 days shall begin to run on the day following the Director's receipt of the notice. A provision regarding this notice of withdrawal shall appear in the bond.

(e) The bond shall be retained by the Section until 90 days after either the expiration or revocation of the license.

N.J. Admin. Code § 13:45B-2.3

Amended by R.1995 d.190, effective 4/3/1995.
See: 26 New Jersey Register 4316(a), 27 New Jersey Register 1430(a).