333.21321 Bond required.
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333.21321 Bond required.
Sec. 21321.
(1)Before issuance of a license under this article, the owner, operator, or governing body of the applicant shall give a bond with a surety approved by the department. The bond shall insure the department for the benefit of the residents. The bond shall be conditioned that the applicant do all of the following:
(a)Hold separately and in trust all resident funds deposited with the applicant.
(b)Administer the funds on behalf of a resident in the manner directed by the depositor.
(c)Render a true and complete account to the resident, the depositor, and the department when requested.
(d)Account, on termination of the deposit, for all funds received, expended, and held on hand.
(2)The bond shall be in an amount equal to not less than 1-1/4 times the average balance of resident funds held during the prior year. The department may require an additional bond or permit filing of a bond in a lower amount, if the department determines that a change in the average balance has occurred or may occur. An applicant for a new license shall file a bond in an amount which the department estimates as 1-1/4 times the average amount of funds which the applicant, upon issuance of the license, is likely to hold during the first year of operation.
History: 1978, Act 368, Eff. Sept. 30, 1978
Popular Name: Act 368