N.M. Admin. Code § 14.5.9.12

Current through Register Vol. 35, No. 23, December 10, 2024

Section 14.5.9.12 - LIMITATIONS ON CODE BONDS

A.It is possible to have multiple violations on a single project. Only one code bond can be used to indemnify a particular code violation listed in a CUV per trade bureau jurisdiction. If there are multiple violations by multiple licensees, only the code bond belonging to the responsible party can be used to indemnify the code violation.

B.Legal fees and other related costs are not collectable from the code bond disbursements. Any disputes not covered by the code bond must be resolved through civil litigation in a court of law or by means of mediation, neither of which the division or the surety can be a party.

C.Priority on claims against a code bond is established by the person that is first in time to file a completed form provided by the division requesting a code bond determination regardless of when the work occurred.

N.M. Admin. Code § 14.5.9.12

Adopted by New Mexico Register, Volume XXVI, Issue 06, March 31, 2015, eff. 4/30/2015