(A) Every person engaged in, conducting, managing or carrying on the business of a collection agency in the city shall pay a license tax of $10 per year for each office or branch office maintained in the conducting, managing or carrying on of the collection agency, and in addition shall execute and deliver to the City Auditor a bond in the principal sum of $1,000 which bond shall run to the city. The bond shall be executed and acknowledged by the applicant as principal, and by a corporation which is licensed by the Insurance Department of this state to transact the business of fidelity and surety insurance, as surety, and the bond shall be conditioned that the principal shall and will, upon demand in writing, pay and turn over to and for the use of any client, patron and customer from whom any claim is taken or received for collection, the proceeds of such collection in accordance with the terms of the agreement made between the principal and the client, patron or customer, and conditioned further that the principal will comply with all requirements of the ordinances of the city and laws of the state now in force or hereafter enacted with respect to the duties, obligations and liabilities of collection agencies.
(B) The bond shall cover all matters placed with the licensee during the term of the license so applied for, or renewal thereof and the liability there under shall continue only for a period of two years from and after the expiration or revocation of the license issued upon the filing of the bond; provided no action shall have been commenced upon the bond before the expiration of said period.
(Prior Code, § 11.02.01) Penalty, see § 10.99
Cross-reference:
Schedule of fees, see § 110.02