(815 ILCS 602/5-50)
Sec. 5-50.
Minimum net worth or bond requirement.
(a) In connection with the offer or sale of a business
opportunity, no seller may make or use any of the
representations set forth in Section 5-5.10(a)(4) and Section
5-5.10(a)(5) of this Law unless the seller has at all times a
minimum net worth of $25,000 as determined in accordance with
generally accepted accounting principles. In lieu of the minimum
net worth requirement, the Secretary of State may, by rule,
regulation, or order, require a business opportunity seller to
obtain a surety bond issued by a surety company authorized to do
business in this State. The surety bond shall be in an amount
not less than $25,000 and shall be in favor of this State for
the benefit of any purchaser. The Secretary of State may by
rule, regulation, or order, increase the amount of the bond for
the protection of purchasers and may require the seller to file
reports of all sales in this State to determine the appropriate
amount of bond.
(b) Where the seller is required to obtain a surety bond,
the seller shall maintain a surety bond for the duration of the
guarantee or representation giving rise to the surety bond
requirement. Upon expiration of the period of the guarantee, the
seller may allow the surety bond to lapse provided that the
seller shall give notice to the Secretary of State and all
business opportunity purchasers in this State at least 30 days
prior to the lapse of the bond.
(Source: P.A. 89-209, eff. 1-1-96.)
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