§ 523g-6

523G.6 Evidence of financial responsibility. 1. An invention developer shall maintain as security evidence of financial responsibility as approved by the commissioner. The security shall be either a bond or cash deposit inan amount which is equal to the greater of either ten percent of the invention developer’sgross income from the invention development business in this state during the inventiondeveloper’s preceding fiscal year, or twenty-five thousand dollars. The commissioner shallapprove the security before the invention developer renders or offers to render inventiondevelopment services in this state. The invention developer shall have ninety days beginningon the first day of the invention developer’s new fiscal year to change the security as necessaryto conform to the requirements of this subsection. 2. A surety who issues a bond must be approved by the commissioner. A copy of the bond shall be filed in a manner and according to procedures approved by the commissioner.A cash deposit shall be filed with the treasurer of state in a manner and according toprocedures approved by the treasurer of state in consultation with the commissioner.

approved by the commissioner.A cash deposit shall be filed with the treasurer of state in a manner and according toprocedures approved by the treasurer of state in consultation with the commissioner. Thetreasurer of state shall not refund a deposit until sixty days following either the date that theinvention developer has ceased doing business in the state or a bond has been filed with thecommissioner in compliance with this section. 3. a. The security shall be in favor of the state for the benefit of any person entering into a contract with and damaged by an invention developer, if the damages are caused by one ofthe following: (1) A failure by the invention developer to perform the terms of the contract.(2) The insolvency of the invention developer or the cessation of the invention developer’s business. (3) The intentional violation of a provision of this chapter by the invention developer.b. A person claiming against the security may maintain an action at law against the invention developer. An action against a bond may also include the surety. The aggregateliability of the surety to all persons for all breaches of conditions of the bond shall not exceedthe amount of the bond.

developer. An action against a bond may also include the surety. The aggregateliability of the surety to all persons for all breaches of conditions of the bond shall not exceedthe amount of the bond. 92 Acts, ch 1114, §7, 13; 2012 Acts, ch 1023, §157Implementation contingent upon appropriation; 92 Acts, ch 1114, §13; 94 Acts, ch 1031, §21 Sat Dec 23 01:02:32 2023 Iowa Code 2024, Section 523G.6 (16, 0)