Utah § 13-42-113 - Surety bond required.

Full text of Utah Utah Code § 13-42-113 — Surety bond required., with citation guidance and answers to common questions.

§ 13-42-113. Surety bond required.

Effective 5/6/2026
13-42-113.  Surety bond required.
(1)Except as otherwise provided in Section 13-42-114, a provider that is required to be registered under this chapter shall file a surety bond with the division, which shall:
(a)be in effect during the period of registration and for two years after the day on which the provider ceases providing debt-management services to individuals in this state; and
(b)run to this state for the benefit of this state and of individuals who reside in this state when the individuals agree to receive debt-management services from the provider, as the individuals' interests may appear.
(2)Subject to adjustment of the dollar amount in accordance with Subsection 13-42-132(6), a surety bond filed in accordance with Subsection (1) shall:
(a)be in the amount of $100,000;
(b)be issued by a surety company authorized to do business in this state and rated at least A- by a nationally recognized rating organization; and
(c)have payment conditioned on noncompliance of the provider or its agent with this chapter.
(3)
(a)If the principal amount of a surety bond is reduced by payment of a claim or a judgment, the provider shall immediately notify the division and, no later than 30 days after the day on which the division gives notice to the provider, file a new or additional surety bond in an amount to comply with the $100,000 requirement.
(b)If for any reason a surety terminates a bond, the provider shall immediately file a new surety bond in the amount of $100,000.
(4)The division or an individual may obtain satisfaction out of the surety bond procured in accordance with this section if:
(a)the division assesses expenses under Subsection 13-42-132(2)(a), issues a final order under Subsection 13-42-133(1)(b), or recovers a final judgment under Subsection 13-42-133(1)(d) or (e) or Subsection 13-42-133(4); or
(b)an individual recovers a final judgment in accordance with Subsection 13-42-135(1), Subsection 13-42-135(2), or Subsection 13-42-135(3)(a), (b), or (d).
(5)If claims against a surety bond exceed or are reasonably expected to exceed the amount of the bond, the division, on the initiative of the division or on petition of the surety, shall, unless the proceeds are adequate to pay all costs, judgments, and claims, distribute the proceeds in the following order:
(a)to satisfaction of a final order or judgment under Subsection 13-42-133(1)(a), (d), or (e) or Subsection 13-42-133(4);
(b)to final judgments recovered by individuals in accordance with Subsection 13-42-135(1), Subsection 13-42-135(2), or Subsection 13-42-135(3)(a), (b) or (d), pro rata;
(c)to claims of individuals established to the satisfaction of the division, pro rata; and
(d)if a final order or judgment is issued under Subsection 13-42-133(1), to the expenses charged in accordance with Subsection 13-42-132(2)(a).


Amended by Chapter 95, 2026 General Session

Related Utah Legal Topics

Frequently Asked Questions About Utah § 13-42-113

What does Utah Code § 13-42-113 cover?

Section 13-42-113 ("Surety bond required.") is part of the Utah Code, the codified statutory law of Utah. 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 Utah § 13-42-113?

A common citation format is "Utah Code § 13-42-113" (Utah). 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 Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 13-42-113 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah 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 Utah.