Sec. 10-2. Surety bond.
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/il/chapter-205/act-658/10-2·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 10-2. Surety bond.
(a)An applicant for a money transmission license must provide, and a licensee at all times must maintain, security consisting of a surety bond in a form satisfactory to the Secretary. The bond shall run to the State of Illinois for the benefit of any claimant against the applicant or licensee with respect to the receipt, handling, transmission, and payment of money by the licensee or authorized delegate in connection with the licensed operations. A claimant damaged by a breach of the conditions of a bond shall have a right to action upon the bond for damages suffered thereby and may bring suit directly on the bond, or the Secretary may bring suit on behalf of the claimant.
(b)The amount of the required security shall be the greater of $100,000 or an amount equal to 100% of the licensee's average daily money transmission liability in this State calculated for the most recently completed quarter, up to a maximum of $2,000,000;
(c)A licensee that maintains a bond in the maximum amount provided for in subsection
(b)is not required to calculate its average daily money transmission liability in this State for purposes of this Section.
(d)A licensee may exceed the maximum required bond amount pursuant to paragraph
(5)of subsection
(a)of Section 10-4.
(e)After receiving a license, the licensee must maintain the required bond plus net worth until 3 years after it ceases to do business in this State unless all outstanding payment instruments are eliminated or the provisions under the Revised Uniform Unclaimed Property Act have become operative and are adhered to by the licensee. Notwithstanding this provision, however, the amount required to be maintained may be reduced to the extent that the amount of the licensee's payment instruments outstanding in this State are reduced.
(f)Instead of a paper surety bond, each licensee and applicant shall file and maintain an electronic surety bond in NMLS or in a manner otherwise authorized by the Secretary.