Sec. 3. (a) A seller shall obtain a surety bond issued by a surety company authorized to do business in Indiana. The amount of the bond must be at least twenty (20) times the initial payment required for the business opportunity, but not less than seventy-five thousand dollars ($75,000). The bond must be in favor of the state for the use and benefit of investors.

     (b) The attorney general may waive the bonding requirement under subsection (a) and accept in lieu of the bond an irrevocable letter of credit for an equivalent amount issued in the favor of the state.

As added by P.L.134-1984, SEC.1. Amended by P.L.12-1986, SEC.11.

Terms Used In Indiana Code 24-5-8-3

  • Attorney: includes a counselor or other person authorized to appear and represent a party in an action or special proceeding. See Indiana Code 1-1-4-5
  • Business opportunity: means an investment that:

    Indiana Code 24-5-8-1

  • Initial payment: means the total amount an investor is obligated to pay under the terms of the contract before or at the time of delivery of the goods or services to the investor or within six (6) months of the date that the investor commences operation of the business. See Indiana Code 24-5-8-1
  • Seller: means a person, or his agent, who sells or leases or offers to sell or lease a business opportunity. See Indiana Code 24-5-8-1
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