093_HB2425enr

 
HB2425 Enrolled                      LRB093 08185 JLS 08392 b

 1        AN ACT concerning currency exchanges.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Currency  Exchange  Act  is  amended by
 5    changing Section 5 as follows:

 6        (205 ILCS 405/5) (from Ch. 17, par. 4812)
 7        Sec. 5.  Bond; condition; amount.
 8        (a)  Before any license shall be issued  to  a  community
 9    currency  exchange the applicant shall file annually with and
10    have approved by the Director a  surety  bond,  issued  by  a
11    bonding  company  authorized  to do business in this State in
12    the principal sum of $10,000.  Such bond  shall  run  to  the
13    Director  and  shall  be  for the benefit of any creditors of
14    such currency exchange for  any  liability  incurred  by  the
15    currency  exchange  on any money orders issued or sold by the
16    currency exchange and  for  any  liability  incurred  by  the
17    currency  exchange  for  any  sum or sums due to any payee or
18    endorsee of any check, draft or money  order  left  with  the
19    currency  exchange  for  collection,  and  for  any liability
20    incurred by the currency  exchange  in  connection  with  the
21    rendering  of any of the services referred to in Section 3 of
22    this Act.
23        From time to time the Director may determine  the  amount
24    of  liabilities  as  described  herein  and shall require the
25    licensee to file a bond in an additional sum if the  same  is
26    determined   to   be   necessary   in   accordance  with  the
27    requirements of this Section.  In no case shall the  bond  be
28    less  than the initial $10,000, nor more than the outstanding
29    liabilities.
30        (b)  In  lieu  of  the  surety   bond   requirements   of
31    subsection  (a),  a  community currency exchange licensee may
 
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 1    submit  evidence  satisfactory  to  the  Director  that   the
 2    community  currency exchange licensee is covered by a blanket
 3    bond that covers multiple licensees  who  are  members  of  a
 4    statewide  association of community currency exchanges.  Such
 5    a blanket bond must be issued by a bonding company authorized
 6    to do business in this State and in a principal aggregate sum
 7    of not less than $2,000,000.
 8        (c)  An ambulatory currency exchange may  sell  or  issue
 9    money  orders  at  any  location  with  regard to which it is
10    issued a license pursuant to  this  Act,  including  existing
11    licensed  locations,  without  the  necessity  of  a  further
12    application  or  hearing and without regard to any exceptions
13    contained in existing licenses, upon the  filing  with    the
14    Director of a surety bond approved by the Director and issued
15    by  a  bonding  company or insurance company authorized to do
16    business in Illinois, in the principal sum of $100,000.  Such
17    bond may be a blanket bond covering all  locations  at  which
18    the  ambulatory  currency  exchange  may  sell or issue money
19    orders, and shall run to the Director for the use and benefit
20    of any creditors of such ambulatory currency exchange for any
21    liability incurred by the ambulatory currency exchange on any
22    money orders issued or sold by it. Such bond shall be renewed
23    annually. If after the expiration of one year from  the  date
24    of  approval  of  such  bond by the Director, it shall appear
25    that the average amount of such liability during the year has
26    exceeded $100,000, the Director shall require the licensee to
27    furnish a bond for the ensuing year, to be  approved  by  the
28    Director,  for an additional principal sum of $1,000 for each
29    $1,000 of such liability or fraction thereof in excess of the
30    original $100,000, except that the  maximum  amount  of  such
31    bond shall not be required to exceed $250,000.
32    (Source: P.A. 86-432.)

33        Section  99.  Effective date.  This Act takes effect upon
 
HB2425 Enrolled             -3-      LRB093 08185 JLS 08392 b
 1    becoming law.