21. Termination of fidelity bond
(1)(a) A fidelity bond given pursuant to this Act may be terminated by the insurance company that executed it by notice in writing served upon the licensee to whom the bond relates, the Commissioner of Police and the Commissioner.
(b) The notice shall specify the date, being a date not earlier than 30 days after the date of the service of the notice, upon which the bond is to terminate.
(c) The obligation of the insurance company that executed the bond shall as from that date so specified be determined but notwithstanding such determination the insurance company shall continue to be liable ¾
(i) in respect of all penalties, damages and costs adjudged against the licensee to whom the bond relates in respect of any act, done or omitted before the date of the determination of the bond; and
(ii) for the due accounting after the specified date by the licensee to the persons entitled thereto, of all trust money received by the licensee before the specified date.
(2) When a fidelity bond given in respect of a licensee is so terminated during the currency of the licence held by the licensee, then, as from the date the bond is terminated, and until a further bond has been duly lodged with the Commissioner and is in force, the licence held by the licensee is suspended and the debt collector to whom the licence was issued shall be deemed not to be a licensee.
(3) Any person may, with the written approval of the Minister, sue upon any fidelity bond or approved security lodged pursuant to this Act for indemnity in respect of any loss covered, by the bond or approved security.
(4) Any action taken pursuant to subsection (3) shall be taken within 2 years after the date upon which the cause of the action arose.
[Section 21 amended by No. 55 of 2004 s. 229.]