New York General Business Code § 178

Action on bond
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§ 178. Action on bond. All claims or suits brought in any court\nagainst any licensed person may be brought in the name of the person\ndamaged upon the bond deposited by such licensed person as provided in\nsection one hundred seventy-seven and may be transferred and assigned as\nother claims for damages in civil suits. The amount of damages claimed\nby plaintiff, and not the penalty named in the bond, shall determine the\njurisdiction of the court in which the action is brought. The\ncommissioner may institute a suit against the bond on behalf of any\nperson damaged. Where such licensed person has departed from the state\nwith intent to defraud his creditors or to avoid the service of a\nsummons in an action brought under this section, service shall be made\nupon the surety in the manner provided for service of a summons. A copy\nof such summons shall be mailed to the last known post office address of\nthe residence of the licensed person and the place where he conducted\nsuch employment agency, as shown by the records of the commissioner.\n

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