S.L. 1975-562

1975 SESSION

CHAPTER 562

HOUSE BILL 1127

AN ACT TO TAX AND REGULATE PROFESSIONAL BONDSMEN IN HARNETT COUNTY.

The General Assembly of North Carolina enacts:

Section 1. Every person, firm, association or corporation, who shall engage in the business of signing, executing, and becoming surety on appearance bonds in any court in Harnett County for a fee or compensation, shall apply for and obtain from the County of Harnett, and each city or town in said county in which such business is engaged in, a license for the privilege of engaging in such business. The amount of said license tax shall be fixed by the Board of County Commissioners of Harnett County and the governing bodies of the cities and towns therein, and shall not be in excess of the maximum which counties, cities and towns are authorized to levy on professional bondsmen, under the provisions of the Revenue Act of the State of North Carolina, as amended. Said license shall be for a period of one year and shall expire on the thirty-first day of May of each year.

Sec. 2. In addition to the privilege license provided for in Section 1 of this act, every person, firm, association or corporation, who shall engage in the business of signing, executing and becoming surety on appearance bonds in any court in Harnett County for a fee or compensation, shall, as a condition precedent to signing, executing, and becoming surety upon any appearance bond, deposit with the Clerk of the Superior Court of Harnett County not less than five thousand dollars ($5,000) in cash or marketable securities approved by the clerk and shall, at the same time, post an agreement with the Clerk of the Superior Court of Harnett County that such cash or marketable securities shall, at all times, be available for the purpose of the payment of any bonds signed by such person, firm, association or corporation, which has been declared by the court to be forfeited. If the amount of any such forfeited bond is not paid within 10 days from the date of the forfeiture, the Clerk of the Superior Court of Harnett County is authorized to apply the amount of the forfeiture out of said deposit and the person, firm, association or corporation, whose deposit is thus reduced, shall immediately, upon notice by the Clerk of the Superior Court of Harnett County, deposit an additional sum with the Clerk of the Superior Court of Harnett County in order that the deposit shall always be in at least the sum of five thousand dollars ($5,000) either in cash or marketable securities. The Clerk of the Superior Court of Harnett County is hereby authorized to deposit the funds received under this section in any bank or building and loan association and to become trustee of the said deposits.

No bondsman shall be allowed to sign an individual bond which shall exceed two-fifths (2/5) of the deposit with the clerk of superior court. No bondsman shall be allowed to sign bonds when his aggregate amount of outstanding bonds totals six times his deposit. No bondsman may receive a refund of his deposit until such time as all outstanding bonds are settled and the bondsman has surrendered his license to sign bonds in Harnett County and produced proof of same to the clerk of superior court. The clerk of superior court shall notify all persons authorized to take bonds of the license surrender.

Sec. 3. No person, firm, association, or corporation, who shall execute or become surety upon any appearance bond in any court in Harnett County, shall charge a fee therefor, and for all services in connection therewith, an amount not in excess of fifteen percent (15%) of the amount of said bond.

Sec. 4. No bondsman shall be allowed to solicit business in any of the courts or on the premises of any of the courts of this State, in the office of any magistrate and in or about any place where prisoners are confined. Loitering in or about a magistrate's office or any place where prisoners are confined shall be prima facie evidence of soliciting.

Sec. 5. Any person, firm, association, or corporation, who shall engage in the business defined in Section 1 of this act without securing the privilege license and making the deposit required by this act, or who violates any of the other provisions of this act, shall be guilty of a misdemeanor and upon conviction shall be fined or imprisoned in the discretion of the court.

Sec. 6. This act shall not apply to surety or bonding companies regularly licensed by the Insurance Department of the State of North Carolina.

Sec. 7. This act shall apply to Harnett County only.

Sec. 8. All laws and clauses of laws in conflict with this act are hereby repealed to the extent of such conflict.

Sec. 9. This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 11th day of June, 1975.