New Mexico Administrative Code › Title 14 - HOUSING AND CONSTRUCTION › Chapter 12 - MANUFACTURED HOUSING › Part 4 - BONDS AND TRUST ACCOUNTS › Section 14.12.4.10 - BONDS

Current through Register Vol. 35, No. 13, July 16, 2024
A. Consumer
				protection bonds or other security as approved by the division shall not be
				released by the division until all claims and complaints against the licensee
				have finally resolved or until two (2) years after the licensee ceased doing
				business in New Mexico, whichever period is later. In no case shall the
				division authorize the release of bonds except in accordance with 14.12.4.10
				NMAC.
B. All liability on a
				consumer protection bond or other form of security allowed by the division
				shall be applicable to the bond or other security in effect as of the date of
				sale or service of the occurrence which gave rise to the liability. In the
				event that the total amount of claims against a consumer protection bond
				exceeds the aggregate total amount of any bond or other form of approved
				security, the division may distribute the proceeds of such bond or other
				approved security pro rata to the claimants.
C. The committee may order the division to
				attach and disburse a licensee's consumer protection bond subsequent to a
				hearing before the committee without taking action against the licensee's
				license. The division may attach any licensee's consumer protection bond and
				indemnify a consumer for losses to the limit of the bond for damages resulting
				from such licensee's violation of the act or regulations or from fraud,
				misrepresentation, making of false promises or the refusal, failure of
				inability to transfer good and sufficient legal titles, as these causes are set
				forth and authorized in Section
				60-14-6,
				N.M.S.A. 1978. The division, upon a finding of a violation by a licensee, may
				require the licensee to increase the amount of any bond. Any increase shall be
				in proportion to the seriousness of the offense or to the repeat nature of the
				licensee's violation, but shall not exceed one hundred thousand dollars
				($100,000.00) for manufacturers, fifty thousand dollars ($50,000.00) for
				dealers, and brokers, twenty-five thousand dollars ($25,000.00) for installers
				and repairman to include individuals granted licensure in accordance with
				14.12.2.14 NMAC. The division may reduce any increased bond when satisfied that
				violations have been cured by appropriate corrective action and that the
				licensee is otherwise in good standing.
D. If reimbursement to a consumer for
				repairs, parts or other work is requested in a complaint the committee shall
				determine the reasonable value of such repairs, parts or work.
E. If a licensee does not conduct any
				business after issuance of his license and the posting of the applicable bond,
				the division, upon receipt of the satisfactory evidence that no business was
				conducted, and upon surrender of the license, may release the licensee's
				bond.
F. A corporate surety which
				issues a surety bond for a license may cancel the surety bond by giving sixty
				(60) days prior written notice to the division of such cancellation, provided,
				however, that no such cancellation shall be effective unless the division has
				approved the cancellation by appropriate signature on the notice.
G. The division shall give written notice to
				any corporate surety of any formal notice of contemplated disciplinary action
				served upon a licensee that is insured by that corporate surety.
H. Payments from a consumer protection surety
				bond may only be used to reimburse a consumer for actual damages incurred as a
				result of actions caused by a licensee. Actual damages may include, but are not
				limited to, repairs, parts or other work requested in a complaint, after the
				committee determines the reasonable value of such repairs, parts or work, and
				for reimbursement of deposits or down payments. The proceeds of a bond may not
				be used to pay punitive damages, attorney fees or costs associated with, or
				attributable, to pain and suffering.