(a) On acceptance by the Attorney General of a transferee's application for registration as a structured settlement transferee, the transferee shall promptly: (1) File with the Attorney General an irrevocable letter of credit in the amount of $100,000 issued by a financial institution; (2) Deposit with the Attorney General cash in the amount of $100,000; or (3) File with the Attorney General a bond that is: (i) In favor of the State; (ii) In the penal sum of $100,000; and (iii) Executed by an authorized surety insurer. (b) A bond shall remain in force until the surety insurer is released from liability by the Attorney General or until the bond is canceled by the surety insurer. (c) The total liability of the surety insurer under a bond may not exceed the penal sum of the bond. (d) (1) (i) The surety insurer may cancel a bond after filing a written notice with the Attorney General at least 30 days before the effective date of the cancellation. (ii) A cancellation under this subsection does not affect any liability that accrued before the cancellation. (2) After notification of the cancellation of the bond, the transferee shall act promptly to replace the bond. (3) If the transferee fails to act promptly to replace the bond, the Attorney General may deny, suspend, or revoke the registration of the transferee until the required bond is filed. (e) If, at any time, a structured settlement transferee fails to comply with subsection (a) of this section, the Attorney General may deny, suspend, or revoke the registration of the transferee until the transferee complies with subsection (a) of this section.
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