Sec. 3. (a) A seller shall obtain a surety bond issued by a surety company authorized to do business in Indiana. The amount of the bond must be at least twenty (20) times the initial payment required for the business opportunity, but not less than seventy-five thousand dollars ($75,000). The bond must be in favor of the state for the use and benefit of investors.
(b) The attorney general may waive the bonding requirement under subsection (a) and accept in lieu of the bond an irrevocable letter of credit for an equivalent amount issued in the favor of the state.
As added by P.L.134-1984, SEC.1. Amended by P.L.12-1986, SEC.11.
Structure Indiana Code
Chapter 8. Business Opportunity Transactions
24-5-8-1.5. Substantial Sellers; Application of Certain Sections
24-5-8-2. Disclosure Document; Cover Sheet; Contents
24-5-8-3. Surety Bonds; Requirements; Waiver
24-5-8-4. Requirements Before Advertising; Amendment of Filings; Renewal Fee; Record of Filings
24-5-8-5. Representations of Business Opportunity; Copy to Investor, Contents
24-5-8-7. Books, Records, and Accounts; Documents
24-5-8-8. Validity of Waiver of Provisions by Investor
24-5-8-9. Attempts to Have Investor Waive Rights
24-5-8-10. Cutting Off Right or Defense of Investor Against Seller
24-5-8-11. Initial Cash Payment
24-5-8-13. Reference to Compliance With Chapter in Advertisement
24-5-8-14. Use of Commercial Symbols
24-5-8-15. Cancellation of Contract for Seller's Failure to Comply
24-5-8-19. Failure to Comply; Penalty