Indiana § 24-5-7-15 - Surety bonds claims against bonds; hearing and determination; distribution of bond proceeds
Full text of Indiana Indiana Code § 24-5-7-15 — Surety bonds claims against bonds; hearing and determination; distribution of bond proceeds, with citation guidance and answers to common questions.
§ 24-5-7-15. Surety bonds claims against bonds; hearing and determination; distribution of bond proceeds
Sec. 15. (a) If any health spa fails, or is alleged to have failed, to meet its obligations prior to the commencement of health spa services, the secretary of state shall hold a hearing and determine whether there has been such a failure, determine those persons who, as buyers, have sustained financial losses recoverable under the bond and, if appropriate, distribute the bond proceeds to the persons sustaining losses, to the extent of their losses.
(b) Actions upon the bond and the right to payment under the bond extend solely to the secretary of state. However, if the secretary of state has not initiated an action upon the bond by scheduling and holding a hearing within thirty (30) days of a written request to do so, any claimant may initiate an action in the circuit court of Marion County, Indiana, to require the secretary of state to take action.
(c) If, upon a hearing, the secretary of state determines that the claims of persons who have sustained financial losses recoverable under the seller's bond exceed the amount of the bond proceeds, the proceeds shall be prorated among those persons according to the ratio that each person's loss bears to the total amount of all proven losses.
(d) The determination of the secretary of state as to liability under the bond and the amount distributed under the bond is binding upon the principal and surety of the bond.
(e) All hearings held under this section shall be held in accordance with IC 4-21.5-3.
(f) The existence of the bond and the bond recovery procedure in no way affect or alter any other right or remedy which a person may have under applicable law.
As added by P.L.249-1983, SEC.1. Amended by P.L.7-1987, SEC.109.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 24-5-7-15
What does Indiana Code § 24-5-7-15 cover?
Section 24-5-7-15 ("Surety bonds claims against bonds; hearing and determination; distribution of bond proceeds") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 24-5-7-15?
A common citation format is "Indiana Code § 24-5-7-15" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 24-5-7-15 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.