(205 ILCS 405/5) (from Ch. 17, par. 4812)
Sec. 5. Bond; condition; amount.
(a) Before any license shall be issued
to a community
currency exchange the applicant shall file annually with and
have approved by the Secretary a surety bond, issued by a bonding
company authorized to do business in this State in the principal sum
of $25,000. Such bond shall run to the Secretary and shall
be for the benefit of any creditors of such currency exchange
for any liability incurred by the currency exchange on any
money orders, including any fees and penalties incurred by the remitter should the money order be returned unpaid, issued or sold by the currency exchange and for
any liability incurred by the currency exchange for any sum or
sums due to any payee or endorsee of any check, draft or money
order left with the currency exchange for collection, and for
any liability incurred by the currency exchange in connection
with the rendering of any of the services referred to in
Section 3 of this Act.
From time to time the Secretary may determine the amount of liabilities
as described herein and shall require the licensee to file a bond in an
additional sum if the same is determined to be necessary in accordance with
the requirements of this Section. In no case shall the bond be less than
the initial $25,000, nor more than the outstanding liabilities.
(b) In lieu of the surety bond requirements of subsection (a), a community
currency exchange licensee may submit evidence satisfactory to the Secretary
that the community currency exchange licensee is covered by a blanket bond that
covers multiple licensees who are members of a statewide association of
community currency exchanges. Such a blanket bond must be issued by a bonding
company authorized to do business in this State and in a principal aggregate
sum of not less than $3,000,000 as of May 1, 2012, and not less than $4,000,000 as of May 1, 2014.
(c) An ambulatory currency exchange may sell or issue money orders
at any location with regard to which it
is issued a license pursuant to this Act, including existing
licensed locations, without the necessity of a further
application or hearing and without regard to any exceptions
contained in existing licenses, upon the filing with
the Secretary of a surety bond approved by the Secretary and issued by a bonding
company
or insurance company authorized to do business in Illinois,
in the principal sum of $100,000. Such bond may be a blanket
bond covering all locations at which the ambulatory currency
exchange may sell or issue money orders,
and shall run to the Secretary for the
use and benefit of any creditors of such ambulatory currency
exchange for any liability incurred by the ambulatory currency
exchange on any money orders issued or sold by it.
Such bond shall be renewed annually. If after
the expiration of one year from the date of approval of such
bond by the Secretary, it shall appear that the average amount
of such liability during the year has exceeded $100,000,
the Secretary shall require the licensee to furnish a bond for
the ensuing year, to be approved by the Secretary,
for an additional principal sum of $1,000 for each $1,000 of
such liability or fraction thereof in excess of the original
$100,000, except that the maximum amount of such bond shall not be required to
exceed $250,000.
(Source: P.A. 97-315, eff. 1-1-12.)
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