Source: http://www.pacode.com/secure/data/049/chapter36/subchapDtoc.html
Timestamp: 2017-10-17 11:35:08
Document Index: 296001276

Matched Legal Cases: ['§ 457', '§ 36', '§ 3354', '§ 3350', '§ 3355', '§ 455', '§ 3353', '§ 457', '§ 457', '§ 3331', '§ 455', '§ 1601', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 4904', '§ 4904', '§ 36', '§ 36', '§ 36', '§ 457', '§ 4904', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 457', '§ 457', '§ 457', '§ 457', '§ 9124', '§ 456', '§ 457', '§ 36', '§ 36', '§ 36', '§ 457', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 457', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 457', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 501', '§ 36', '§ 36', '§ 36', '§ 36', '§ 36', '§ 501', '§ 36', '§ 36', '§ 36', '§ 36']

Subchapter D. APPRAISAL MANAGEMENT COMPANIES
36.301. Definitions.
36.302. Applicability of general rules.
36.303. Application procedures.
36.304. Content of application.
36.305. Expedited review.
36.306. Fees.
36.311. Qualifications for registration as appraisal management company.
36.312. Qualifications of owners and key persons.
36.313. Qualifications of compliance person.
36.314. Reporting change of information.
36.315. Temporary authority to conduct business.
36.321. Expiration of registration.
36.322. Early termination of registration.
36.331. Compliance with USPAP.
36.332. Verification of appraiser certification.
36.333. Appraisal reviews.
36.334. Broker price opinions.
36.335. Recordkeeping.
36.336. Requirements for solicitation or order of appraisals.
36.337. Duties of compliance persons.
36.341. Prohibited acts.
36.342. Coercive acts or practices.
36.351. Requirements for surety bond or letter of credit.
36.352. Amount of surety bond or letter of credit.
36.353. Form of surety bond.
36.354. Form of letter of credit.
36.355. Maintenance of surety bond or letter of credit.
36.356. Claims against surety or obligor.
The temporary provisions of this Subchapter D issued under section 4(b) of the Appraisal Management Company Registration Act (63 P. S. § 457.24(b)), unless otherwise noted.
The provisions of this Subchapter D adopted June 7, 2013, effective June 8, 2013, 43 Pa.B. 3098, unless otherwise noted.
§ 36.301. Definitions.
AQBThe Appraiser Qualifications Board appointed by The Appraisal Foundation, which promulgates education, experience and other criteria for licensing, certification and recertification of qualified appraisers.
AVMAutomated valuation modelAs defined by section 1125(d) of FIRREA (12 U.S.C.A. § 3354(d)), a computerized model used by mortgage originators and secondary market issuers to determine the collateral worth of a mortgage secured by a consumers principal dwelling.
The Appraisal FoundationThe entity identified in section 1121(9) of FIRREA (12 U.S.C.A. § 3350(9)).
AssignmentAs defined by USPAP, an agreement between an appraiser and a client to provide a valuation service and the valuation service that is provided as a consequence of an agreement.
BPOBroker price opinionAs defined by section 1126(b) of FIRREA (12 U.S.C.A. § 3355(b)), an estimate prepared by a real estate broker, agent or sales person that details the probable selling price of a particular piece of real estate property and provides a varying level of detail about the propertys condition, market and neighborhood, and information on comparable sales, but does not include an AVM.
CHRIA18 Pa.C.S. Chapter 91 (relating to Criminal History Record Information Act).
Comparative market analysisAs defined in section 201 of RELRA (63 P. S. § 455.201), a written analysis, opinion or conclusion by a contracted buyers agent, transactional licensee, or an actual or potential sellers agent relating to the probable sale price of a specified piece of real estate in an identified real estate market at a specified time, offered either for the purpose of determining the asking/offering price for the property by a specific actual or potential consumer, or for the purpose of securing a listing agreement with a seller.
Compliance personAn individual who is employed, appointed or authorized by an appraisal management company to be responsible for ensuring compliance with the law and this subchapter.
(i) An ascertainment of guilt of the accused and judgment thereon by a court, and includes a disposition of a criminal proceeding under the laws of the Commonwealth, or a similar disposition under the laws of another jurisdiction, by a plea of guilty, guilty but mentally ill or nolo contendere, or a verdict of guilty or guilty but mentally ill.
EvaluationA valuation permitted by the appraisal regulations of the Office of the Comptroller of the Currency (12 CFR 34.43 (relating to appraisals required; transactions requiring a State certified or licensed appraiser)), the Board of Governors of the Federal Reserve System (12 CFR 225.63 (relating to appraisals required; transactions requiring a State certified or licensed appraiser)), the Federal Deposit Insurance Corporation (12 CFR 323.3 (relating to appraisals required; transactions requiring a State certified or licensed appraiser)), the Office of Thrift Supervision (12 CFR 564.3 (relating to appraisals required; transactions requiring a State certified or licensed appraiser)) and the National Credit Union Administration (12 CFR 722.3 (relating to appraisals required; transactions requiring a State certified or licensed appraiser)) that qualify for the appraisal threshold exemption, business loan exemption or subsequent transaction exemption.
Exempt companyA person that is exempted from registering under the law as set forth in section 1124(c) of FIRREA (12 U.S.C.A. § 3353(c)).
Federally-related transactionA real estate-related financial transaction which a Federal financial institution regulatory agency or the Resolution Trust Corporation engages in, contracts for or regulates which requires the services of an appraiser.
Key personA person other than a compliance person who is a director, officer, supervisor, manager or other person performing a similar function in an appraisal management company.
LawThe Appraisal Management Company Registration Act (63 P. S. § § 457.21457.31).
Non-Federally related transactionA real estate-related transaction that is not a Federally-related transaction.
OrderWhen used in the context of the contractual relationship between an appraiser and an appraisal management company, an agreement between an appraiser and an appraisal management company that pertains to a specified valuation assignment, including a disclosure of the amount of the appraisal fee, the terms and time frame for payment and the appraisal management company registration number.
Order solicitationAn offer to contract with an appraiser to perform an appraisal resulting in an order.
OwnerA person that owns 10% or more of an appraisal management company.
PanelA network or roster of appraisers used by an appraisal management company.
Panel solicitationAn offer to appoint an appraiser to the panel used by an appraisal management company.
REACAThe Real Estate Appraiser Certification Act (63 P. S. § § 457.1457.19).
REARAReal Estate Appraisal Reform AmendmentsTitle XI of FIRREA (12 U.S.C.A. § § 33313355).
RELRAThe Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902)
Real estate-related financial transactionA transaction involving one or more of the following:
Solicit or solicitationAn offer to contract with an appraiser to perform an appraisal or an offer to an appraiser to be included in an appraisal management companys panel of appraisers.
SupervisorAn individual who is an agent of an appraisal management company and who has the authority to do one or more of the following:
TILAThe Truth in Lending Act (15 U.S.C.A. § § 16011667f).
§ 36.302. Applicability of general rules.
§ 36.303. Application procedures.
(a) Application form. An applicant for registration as an appraisal management company shall complete and file with the Board an application in a form prescribed by the Board. The form is available on the Boards web site at www.dos.state.pa.us/real and by contacting the Board at Post Office Box 2649, Harrisburg, Pennsylvania 17105-2649, (717) 783-4866, ST-APPRAISE@pa.gov.
(b) Application fee. The initial application fee for registration as an appraisal management company is nonrefundable, must be in the amount set forth in § 36.306 (relating to fees) and must be in the form of a check or money order made payable to the Commonwealth of Pennsylvania.
(d) Approved applications. If the Board finds that the application is complete, has no basis to believe that the information in the application is not true and correct, and that the information contained therein qualifies the applicant for registration as an appraisal management company, the Board will issue a registration certificate by mail to the address of record set forth in the application.
(e) Disapproved applications. If the application is disapproved (provisionally denied), the Board will notify the applicant, in writing, of:
(1) The reason for provisional denial.
(2) The applicants right to appeal the provisional denial in writing and to request a hearing before the Board.
(3) The applicants rights under 1 Pa. Code Part II (relating to General Rules of Administrative Practice and Procedure).
(4) The failure to appeal the provisional denial to the Board or to request a hearing within 30 days of the date of the notice of provisional denial will result in the provisional denial of the application being deemed final.
(f) Compliance with new requirements. An applicant shall comply with requirements for registration that take effect between the applicants filing of an initial application and the issuance of registration.
§ 36.304. Content of application.
(a) An application for registration as an appraisal management company must include:
(v) Primary electronic mail address.
(viii) If the applicant began offering appraisal management services before June 8, 2013, and if so, the month and year on which the applicant began offering appraisal management services in this Commonwealth.
(D) Electronic mail address.
(v) Title or titles and each status that qualifies the person as a key person, including one or more of the following:
(vi) Electronic mail address.
(vii) If the key person is an owner.
(ii) Mailing address, if different from the applicants mailing address.
(v) Electronic mail address.
(vi) Title or titles.
(viii) If the compliance person is an owner.
(5) Disciplinary history of the applicant, each owner, key person and the compliance person, including:
(i) Any discipline imposed in this Commonwealth or any other jurisdiction under any law regulating appraisers, appraisal management companies or real estate brokers or salespersons.
(6) An official criminal history record information report from the Pennsylvania State Police or other state agency for each state in which the applicant, owner, key person or compliance person has resided for the 5-year period immediately preceding the date of application.
(7) A surety bond or letter of credit in the form and the amount required under § § 36.35136.356 (relating to surety bonds and letters of credit).
(1) A system in place to verify that a person being added to an appraiser panel of the applicant or who will otherwise perform appraisals for the applicant of property in this Commonwealth is a certified appraiser and in good standing in this Commonwealth under REACA.
(3) A system in place to comply with § 36.335 (relating to recordkeeping).
(4) Authorized the compliance person to file the application and verify the contents of the application subject to the penalties of 18 Pa.C.S. § § 4904 and 4911 (relating to unsworn falsification to authorities; and tampering with public records or information).
(c) The individual designated as the compliance person shall sign the application and verify that the contents of the application are true and correct and is subject to the penalties of 18 Pa.C.S. § § 4904 and 4911.
This section cited in 49 Pa. Code § 36.314 (relating to reporting change of information).
§ 36.305. Expedited review.
(a) An applicant who qualifies for temporary authority to conduct business under § 36.315(a) (relating to temporary authority to conduct business) may file a request for expedited review verified by the designated compliance person subject to the conditions in this section.
(b) The applicant shall file a written request with the Board concurrently with the filing of the application which must include the following averments:
(1) Neither the applicant nor any owner or key person is disqualified under section 10(a)(2)(7) of the law (63 P. S. § 457.30(a)(2)(7)).
(2) The applicant began offering appraisal management services in this Commonwealth before June 8, 2013.
(3) The applicant requests expedited review of his application to avoid interruption of its authority to conduct business in this Commonwealth.
(4) The applicant acknowledges that if the application is provisionally denied by the Board, he must discontinue offering appraisal management services in this Commonwealth on the date of the provisional denial.
(5) The averments set forth in the request for expedited review are made subject to the penalties of 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities).
(c) The applicant shall submit, along with the request, the fee for expedited review in § 36.306 (relating to fees).
(d) Concurrently with the filing of the application, the applicant shall serve copies of the request and the application by mail upon the Legal Office, Prosecution Division, and Legal Office, Counsel Division at the following addresses:
(1) Prosecution Liaison for State Board of Certified Real Estate Appraisers
Department of State Commonwealth of Pennsylvania 2601 North 3rd Street Post Office Box 2649 Harrisburg, Pennsylvania 17105-2649
(2) Counsel for State Board of Certified Real Estate Appraisers
(e) The Boards staff will conduct a preliminary review of the expedited application no later than 10 business days after the filing of the application and approve the application or refer the matter to the Board for disposition.
(f) If the application is referred to the Board for disposition, the application will be presented to the Board at its next regularly scheduled meeting, no sooner than 15 business days after the date of application.
§ 36.306. Fees.
Application for initial registration as an appraisal management company$2,000
Notice of change in corporate organization$35
Letter of good standing/verification of registration$15
Notification of change in key person or compliance person$35
Late fee for reinstatement per month of delinquency$50
Fee for expedited review of application$500
This section cited in 49 Pa. Code § 36.303 (relating to application procedures); and 49 Pa. Code § 36.305 (relating to expedited review).
§ 36.311. Qualifications for registration as appraisal management company.
(a) An appraisal management company is authorized to conduct business in this Commonwealth and to establish and maintain the requirements in this section during a period in which it offers or provides appraisal management services.
§ 36.312. Qualifications of owners and key persons.
(a) A person who would be disqualified from eligibility to be certified or licensed under the REACA as defined in subsection (b) may not be an owner or a key person.
(b) An individual would be disqualified from eligibility to be certified or licensed under the REACA, as provided in section 8(d)(1) of the law (63 P. S. § 457.28(d)(1)), if he had a license or certificate refused, denied, cancelled, suspended or revoked, or voluntarily surrendered a license or certificate under any of the following provisions of the REACA or CHRIA, or similar provision of another jurisdiction, unless the license or certificate has been subsequently granted or reinstated to the individual:
(1) Section 3 of the REACA (63 P. S. § 457.3).
(2) Section 6(c)(1) of the REACA (63 P. S. § 457.6(c)(1)).
(3) Section 11 of the REACA (63 P. S. § 457.11).
(4) Section 9124(c)(1) or (2) of CHRIA (18 Pa.C.S. § 9124(c)(1) or (2)) (relating to use of records by licensing agencies).
(c) Nothing in the law or this subchapter may be construed as a requirement that an owner or a key person shall possess the education or experience required under the AQB or the REACA for certification or licensure.
(d) A person who has been suspended, revoked or has voluntarily surrendered a license under RELRA, 7 Pa.C.S. Chapter 61 (relating to Mortgage Licensing Act) or the Mortgage Bankers and Brokers and Consumer Equity Protection Act (63 P. S. § § 456.301456.318), repealed by the act of July 8, 2008 (P. L. 796, No. 56), may not be an owner or key person.
(e) The Board may consider a disqualifying violation described in subsection (b) if the individuals license or certificate has been subsequently reinstated or granted in determining if the individual possesses good moral character as required under section 5(c)(4) of the law (63 P. S. § 457.25(c)(4)).
This section cited in 49 Pa. Code § 36.313 (relating to qualifications of compliance person).
§ 36.313. Qualifications of compliance person.
(a) In addition to the qualifications in § 36.312 (relating to qualifications of owners and key persons), a compliance person shall hold the qualifications set forth in this section.
(b) A person designated as a compliance person by an appraisal management company shall possess the authority as a matter of law to:
(1) Enter into an agreement with the Board to bind the appraisal management company to comply with requirements of the law, this subchapter and provisions of FIRREA, REACA, REARA or TILA that relate to appraisal standards or appraisal management services.
(3) Certify, verify or otherwise attest as required by law to the contents of a document or pleading filed with the Board.
(1) Conviction as provided in section 10(a)(5) of the law (63 P. S. § 457.30(a)(5)).
(2) Disciplinary action or disposition of an administrative or a civil proceeding as described in section 10(a)(2), (3), (4), (6) or (7) of the law, or a similar provision of a law or regulation of another jurisdiction, resulting in refusal, denial, cancellation, restriction, probation, suspension, voluntary surrender or revocation of the authority or privilege to practice.
(f) An absence or vacancy in the position of compliance person more than 30 days is cause for suspension of an appraisal management companys authority to conduct business until a compliance person has been designated and notice of the change has been filed with the Board as provided in § 36.314 (relating to reporting change of information.)
§ 36.314. Reporting change of information.
(c) A registrant shall report a change in the information required under § 36.304 (relating to content of application) within 30 days, including information relating to disciplinary history or criminal history required under § 36.304(a)(5) and (6).
§ 36.315. Temporary authority to conduct business.
(a) An appraisal management company that is not exempt from the law, which began offering appraisal management services in this Commonwealth before June 8, 2013, and has continued to offer appraisal management services in this Commonwealth since then without interruption, may continue to offer appraisal management services after June 8, 2013, without first being registered if:
(1) An application has been filed with the Board.
(2) The appropriate fees have been paid.
(3) The individual who signed the application in the capacity of the compliance person continues to act as compliance person until the application is approved, deemed withdrawn, provisionally denied or denied by final order.
(4) The application has not been:
(i) Deemed withdrawn.
(ii) Provisionally denied.
(iii) Denied by final order.
(iv) Approved.
(b) An appraisal management company that is not exempt from the law, which has not started offering appraisal management services in this Commonwealth by June 8, 2013, may not offer appraisal management services in this Commonwealth until registered.
(c) Authority to conduct business temporarily without registration under subsection (a) terminates on the date that an application has been:
(1) Deemed withdrawn.
(2) Provisionally denied.
(3) Denied by final order.
(d) For purposes of this section, an appraisal management company has continued to offer appraisal management services in this Commonwealth without interruption if it has made at least one appraisal assignment in each calendar month for real property in this Commonwealth and has maintained records required under this subchapter for each appraisal assignment made.
This section cited in 49 Pa. Code § 36.305 (relating to expedited review).
§ 36.321. Expiration of registration.
§ 36.322. Early termination of registration.
(b) A notice of termination of registration must include:
(2) An acknowledgment that the registrant or his successor remains subject to disciplinary action for acts, errors or omissions occurring before the termination of registration.
(6) If the registrant terminates registration because it has become exempt from registration under the law, documentation in support of the basis for exemption.
(7) An acknowledgment that the surety bond or letter of credit will remain subject to claims in accordance with the procedures in § § 36.35136.356 (relating to surety bonds and letters of credit).
(c) The date on which the registrant terminates registration may not be sooner than the date on which the notice is filed with the Board.
(e) The Bureau may at any time after the filing of a notice of termination under this section begin a disciplinary action against a former registrant for a violation of section 3 of the law (63 P. S. § 457.23), pertaining to registration of appraisal management companies.
§ 36.331. Compliance with USPAP.
(c) An appraisal management company may not solicit, offer, accept an offer or contract for a valuation service that it knows or has reason to know violates REACA, RELRA, FIRREA, the law or this subchapter.
§ 36.332. Verification of appraiser certification.
§ 36.333. Appraisal reviews.
§ 36.334. Broker price opinions.
(a) A BPO may not be used as an evaluation in a non-Federally related transaction.
(b) A BPO may be used as an evaluation in a Federally-related transaction only if the transaction is exempt from the requirement for an appraisal under FIRREA and an appraisal is not otherwise required by the regulations, guidelines or requirements of any lender, agency or other organization.
(c) A comparative market analysis is not a BPO for purposes of the law, REACA or this subchapter if performed for one or both of the following purposes:
§ 36.335. Recordkeeping.
(vii) A record of fees disbursed to contracted appraisers and the fee received by the appraisal management company from the appraisal management companys client.
(ii) The appraisers certificate number.
(iv) The region or area in which the appraisers service may be used.
This section cited in 49 Pa. Code § 36.304 (relating to content of application).
§ 36.336. Requirements for solicitation or order of appraisals.
(3) The appraisal management companys registration number.
(1) A legible statement of the required information on an order or solicitation for an appraisal assignment.
§ 36.337. Duties of compliance persons.
(a) An appraisal management company is subject to disciplinary action under the law and this subchapter for the acts or omissions of a compliance person who fails to perform a duty in this section.
(b) A compliance person shall ensure compliance of an appraisal management company with section 8 of the law (63 P. S. § 457.28).
§ 36.341. Prohibited acts.
(a) The Board may impose one or more sanctions authorized under the law if the Board finds that an appraisal management company, key person or compliance person violated the law or this chapter.
(1) Violation of a provision of the law or this subchapter.
(2) Violation of FIRREA or TILA.
(3) Violation of a statute or regulation of another jurisdiction regulating appraisal management companies.
§ 36.342. Coercive acts or practices.
(2) A requirement that the appraiser provide access to the appraisers digital signature.
(9) A request to an appraiser to provide comparable properties for a specified property prior to completion of appraisal report.
(b) The following acts, if committed with the intent to influence or attempt to influence the development, reporting, result or review of an appraisal, constitute a coercive act or practice in violation of the law and this chapter:
(1) A pattern or course of conduct involving repeated review of appraisals that are not performed in accordance with the appraisal management companys policy for appraisal reviews or quality control functions.
(2) A limitation on the time of completion of an appraisal assignment that impairs the credibility of the report. For purposes of this paragraph, a time limitation or deadline established for the purpose of completing the assignment to complete a transaction by a date established by agreement of parties other than the appraisal management company does not constitute a coercive act or practice.
(3) A delay in payment for appraisal services that violates the appraisal management companys policy for payment.
§ 36.351. Requirements for surety bond or letter of credit.
(b) A surety bond must be in the amount prescribed in § 36.352(a) (relating to amount of surety bond or letter of credit), in the form prescribed by § 36.353 (relating to form of surety bond) and issued by a company authorized to transact surety business in this Commonwealth by the Insurance Department, which possesses a current A. M. Best Rating of A- or better, or a Standard & Poors insurers financial strength rating of A or better, or a comparable rating by another NRSRO.
(c) A letter of credit must be in the amount prescribed in § 36.352(b), in the form prescribed by § 36.354 (relating to form of letter of credit) and payable at an office of a commercial bank in the United States. At the time of issuance of the letter of credit, the issuing bank or its holding company shall have a B/C or better rating or 2.5 or better credit evaluation score by Fitch Ratings, as successor to the rating services of Thomson BankWatch, or the issuing bank shall have a CD or long-term issuer credit rating of BBB or better or a short-term issuer credit rating of A-2 or better by Standard & Poors or a comparable rating by another NRSRO.
This section cited in 49 Pa. Code § 36.304 (relating to content of application); 49 Pa. Code § 36.322 (relating to early termination of registration); 49 Pa. Code § 36.352 (relating to amount of surety bond or letter of credit); and 49 Pa. Code § 36.555 (relating to maintenance of surety bond or letter of credit).
§ 36.352. Amount of surety bond or letter of credit.
(a) A registrant who maintains a surety bond to satisfy the requirements of the law and § 36.351 (relating to requirements for surety bond or letter of credit) shall maintain a bond in the amount of $40,000.
(b) A registrant who maintains a letter of credit to satisfy the requirements of the law and § 36.351 shall maintain a letter of credit in the amount of $40,000.
(1) As a penalty for a violation of the law or this subchapter regarding the nonperformance of services or nonpayment of fees, or a violation of a similar law or regulation of another jurisdiction.
(2) A change in the financial strength or rating of the surety or issuer of the letter of credit.
(3) A failure to maintain the bond or letter of credit in the minimum amount required by the law or this subchapter, whichever is greater.
This section cited in 49 Pa. Code § 36.304 (relating to content of application); 49 Pa. Code § 36.322 (relating to early termination of registration); and 49 Pa. Code § 36.351 (relating to requirements for surety bond or letter of credit).
§ 36.353. Form of surety bond.
A surety bond held by a registrant to satisfy the requirements of the law and this subchapter must include:
(5) Indemnification for claims that arise or occur during the biennial licensure period during which the bond is issued for the benefit of:
(i) The Commonwealth or the public for nonperformance of obligations under the law or this subchapter that occur during the period of the surety bond.
(ii) An appraiser who has performed an appraisal for the registrant during the period of the surety bond for which the appraiser has not been paid.
§ 36.354. Form of letter of credit.
A letter of credit held by a registrant to satisfy the requirements of the law and this subchapter must include:
(2) A provision that the Department has the right to draw upon the credit before the end of its term and to convert it into a cash collateral bond if the registrant fails to replace the letter of credit with other acceptable bond within 30 days of the banks notice to terminate the letter of credit.
(3) The letter of credit must name the Department as the beneficiary and be payable to the Department under § 36.356 (relating to claims against surety or obligor).
(4) A letter of credit must be subject to the most recent edition of the Uniform Customs and Practices for Documentary Credits, published by the International Chamber of Commerce, and the laws of the Commonwealth, including 13 Pa.C.S. (relating to Uniform Commercial Code).
§ 36.355. Maintenance of surety bond or letter of credit.
(a) If the rating of a surety or bank that has issued a bond or letter of credit falls below the minimum ratings required under § 36.351(b) and (c) (relating to requirements for surety bond or letter of credit), a registrant shall replace the bond or letter of credit within 45 days from the date of the substandard rating decline with a new bond or letter of credit that satisfies the requirements of § 36.351.
(b) If a bond or letter of credit is not replaced within 45 days of the substandard rating decline, the Department has discretion to draw on the surety bond or letter of credit and deposit the proceeds with the State Treasurer to secure the registrants liability and to begin proceedings under the law, this subchapter and 2 Pa.C.S. § § 501508 and 701704 (relating to Administrative Agency Law) to suspend or revoke the registrants authority to perform appraisal management services in this Commonwealth.
(c) If a surety or bank makes a payment upon a bond or a letter of credit issued to fulfill the requirements of the law or this subchapter, the registrant shall obtain additional security within 45 days of the date of payment in the form of an additional surety bond or letter of credit in an amount sufficient to maintain the minimum amount required under the law or this subchapter, whichever is greater.
This section cited in 49 Pa. Code § 36.304 (relating to content of application); 49 Pa. Code § 36.322 (relating to early termination of registration); and 49 Pa. Code § 36.356 (relating to claims against surety or obligor).
§ 36.356. Claims against surety or obligor.
(4) Obtain security as provided in § 36.355(b) (relating to maintenance of surety bond or letter of credit).
(1) The expiration of the period of appeal from the entry of a final order issued by the Board in a proceeding under the 2 Pa.C.S. § § 501508 and 701704 (relating to Administrative Agency Law) and a determination by the Department based upon a review of its records that all or part of a civil penalty or costs of investigation levied by that order remain unpaid.
(4) Violation of § 36.355.
This section cited in 49 Pa. Code § 36.304 (relating to content of application); 49 Pa. Code § 36.322 (relating to early termination of registration); and 49 Pa. Code § 36.354 (relating to form of letter of credit).