§ 2-232c Process Server Trust Fund.
RCNY § 2-232
(a)Establishment. There is hereby established a Process Server Trust Fund (hereinafter, "the Fund") to provide for the payment of outstanding awards to aggrieved consumers and fines owed to the City. The Fund will be administered by the Comptroller of the City of New York pursuant to Section 93(h) of the Charter.
(b)Participation in the Fund.
(1)To qualify for participation in the Fund, an applicant for a process server license or renewal therefore must submit with such server's application a copy of its completed application to two sureties approved by the Commissioner for the bond required by § 20-406.1 of the Administrative Code of the City of New York and the original copies of the rejection or denial of such application by such sureties. Pursuant to such section, process serving agencies are not eligible to participate in the Fund.
(2)Any process server who qualifies for participation in the fund may participate by submitting with the application for a process server license or renewal thereof a certified check or money order in the amount $1,000, made payable to the New York City Department of Consumer and Worker Protection for depositing the amount in such Fund.
(3)A bonded licensee may participate in the Fund in lieu of continued compliance with the bond requirement of § 20-406.1(a) of such Code by submitting proof that consists of an original copy from the process server's current surety denying renewal and the completed applications and original denials from two additional sureties approved by the Commissioner, and upon submitting to the Department a certified check or money order in the amount of $1,000 made payable to the New York City Department of Consumer and Worker Protection, prior to the expiration or cancellation of the licensee's bond.
(4)The required deposit to be made by applicants to participate in the Fund may not be refundable upon the issuance of a process server license. If the Department denies issuance of a license or renewal thereof, the deposit made by the applicant must be refunded within thirty days after the application for a license or renewal thereof is denied.
(5)Participation in the Fund does not relieve a licensee of any obligation to pay awards or fines imposed by the Department or judgments or arbitration awards rendered against the licensee by a court of competent jurisdiction. If a process server's license is revoked, surrendered or the process server fails to renew its license, and the Fund is invaded to pay an award, fine or judgment that was rendered against such process server pursuant to the provisions of the Code or these rules, no license may be issued or reinstated to such process server unless the amount(s) paid out of the Fund on behalf of such process server is reimbursed by such process server in full.
(c)Invasion of the Fund.
(6)Nothing contained herein may be construed to provide for the payment of awards or judgments rendered against Fund participants in personal injury actions.
(d)Accounting. The Commissioner must, by January 31 of each year, cause an accounting to be made of all of the Fund's activities during the preceding calendar year. (Amended City Record 9/23/2022, eff. 10/23/2022)
