(a) Except as otherwise provided in section 414, a provider that is required to be registered under this chapter shall file a surety bond with the Lieutenant Governor which must:
(1) be in effect during the period of registration and for two years after the provider ceases providing debt-management services to individuals in the Virgin Islands; and
(2) run to Government of the Virgin Islands for the benefit of the Government of the Virgin Islands and of individuals who reside in the Virgin Islands when they agree to receive debt-management services from the provider, as their interests may appear.
(b) Subject to adjustment of the dollar amount pursuant to section 432(f), a surety bond filed pursuant to subsection (a) must:
(1) be in the amount of $50,000 or other larger or smaller amount that the Lieutenant Governor determines is warranted by the financial condition and business experience of the provider, the history of the provider in performing debt-management services, the risk to individuals, and any other factor the Lieutenant Governor considers appropriate;
(2) be issued by a bonding, surety, or insurance company authorized to do business in the Virgin Islands and rated at least A by a nationally recognized rating organization; and
(3) have payment conditioned upon noncompliance of the provider or its agent with this chapter.
(c) If the principal amount of a surety bond is reduced by payment of a claim or a judgment, the provider shall immediately notify the Lieutenant Governor and, within 30 days after notice by the Lieutenant Governor, file a new or additional surety bond in an amount set by the Lieutenant Governor. The amount of the new or additional bond must be at least the amount of the bond immediately before payment of the claim or judgment. If for any reason a surety terminates a bond, the provider shall immediately file a new surety bond in the amount of $50,000 or other amount determined pursuant to subsection (b).
(d) The Lieutenant Governor or an individual may obtain satisfaction out of the surety bond procured pursuant to this section if:
(1) the Lieutenant Governor assesses expenses under section 432(b)(1), issues a final order under section 433(a)(2), or recovers a final judgment under section 433(a)(4) or (5) or (d); or
(2) an individual recovers a final judgment pursuant to section 435(a), (b), or (c)(1), (2), or (4).
(e) If claims against a surety bond exceed or are reasonably expected to exceed the amount of the bond, the Lieutenant Governor, on the initiative of the Lieutenant Governor or on petition of the surety, shall, unless the proceeds are adequate to pay all costs, judgments, and claims, distribute the proceeds in the following order:
(1) to satisfaction of a final order or judgment under section 43(a)(2), (4), or (5) or (d);
(2) to final judgments recovered by individuals pursuant to section 435(a), (b), or (c)(1), (2) or (4), pro rata;
(3) to claims of individuals established to the satisfaction of the Lieutenant Governor, pro rata; and
(4) if a final order or judgment is issued under Section 33(a), to the expenses charged pursuant to section 432(b)(1).