Each surety bond or other approved security issued for a manufactured home manufacturer, a manufactured home retail dealer, a salesperson, or a manufacturer's representative must be indemnity for a loss sustained by a consumer as a result of:

1. (1) a violation of a provision of this chapter or regulation of the board;
2. (2) a violation of the written warranty or to fulfill warranty obligations as outlined in Section 40-29-170;
3. (3) fraud in the execution or performance of a contract;
4. (4) a misrepresentation in reference to the sale of a manufactured home;
5. (5) refusal, failure, or inability to transfer good and sufficient legal title to the consumer;
6. (6) a misappropriation of funds belonging to the consumer;
7. (7) an alteration to deceive the consumer as to the manufacture or construction of the product;
8. (8) a false and fraudulent representation or deceitful practice in selling, financing, or representing a product or service.