South Carolina § 39-57-40 - Surety bond or trust account requirements.
Full text of South Carolina South Carolina Code of Laws § 39-57-40 — Surety bond or trust account requirements., with citation guidance and answers to common questions.
§ 39-57-40. Surety bond or trust account requirements.
If the business opportunity seller makes any of the representations set forth in Section 39-57-20 (3), the seller must either have obtained a surety bond issued by a surety company authorized to do business in this State or have established a trust account with a licensed and insured bank or savings institution located in the State. The amount of the bond or trust account shall be an amount not less than fifty thousand dollars. The bond or trust account shall be in favor of the State. Any person who is damaged by any violation of this chapter or by the seller's breach of the contract for the business opportunity sale or of any obligation arising therefrom may bring an action against the bond or trust account to recover damages suffered; provided, however, that the aggregate liability of the surety or trustee shall be only for actual damages and in no event shall exceed the amount of the bond or trust account.
HISTORY: 1980 Act No. 474, SECTION 4.
Source: official South Carolina text · Last verified 2026-08-27
Frequently Asked Questions About South Carolina § 39-57-40
What does South Carolina Code of Laws § 39-57-40 cover?
Section 39-57-40 ("Surety bond or trust account requirements.") is part of the South Carolina Code of Laws, the codified statutory law of South Carolina. 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 South Carolina § 39-57-40?
A common citation format is "South Carolina Code of Laws § 39-57-40" (South Carolina). 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 South Carolina law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Carolina official source linked on this page or consult a licensed South Carolina attorney.
How does South Carolina § 39-57-40 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Carolina 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 South Carolina.