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91_HB4308
LRB9113002JSpc
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 6 as follows:
6 (205 ILCS 405/6) (from Ch. 17, par. 4813)
7 Sec. 6. Insurance against loss. Every applicant for a
8 license hereunder shall, after his application for a license
9 has been approved, file with and have approved by the
10 Director, a policy or policies of insurance issued by an
11 insurance company or indemnity company authorized to do
12 business under the law of this State, which shall insure the
13 applicant against loss by theft, burglary, robbery or forgery
14 in a principal sum as hereinafter provided; if the average
15 amount of cash and liquid funds to be kept on hand in the
16 office of the community currency exchange during the year
17 will not be in excess of $10,000 the policy or policies shall
18 be in the principal sum of $10,000. If such average amount
19 will be in excess of $10,000, the policy or policies shall be
20 for an additional principal sum of $500 for each $1,000 or
21 fraction thereof of such excess over the original $10,000.
22 From time to time, the Director may determine the amount of
23 cash and liquid funds on hand in the office of any community
24 currency exchange and shall require the licensee to submit
25 additional policies if the same are determined to be
26 necessary in accordance with the requirements of this
27 Section.
28 Any such policy or policies, with respect to forgery, may
29 carry a condition that the community currency exchange
30 assumes the first $1,000 $100 of each claim thereunder.
31 Before an ambulatory currency exchange shall sell or
-2- LRB9113002JSpc
1 issue money orders, it shall file with and have approved by
2 the Director, a policy or policies of insurance issued by an
3 insurance company or indemnity company authorized to do
4 business under the laws of this State, which shall insure
5 such ambulatory currency exchange against loss by theft,
6 burglary, robbery, forgery or embezzlement in the principal
7 sum of not less than $500,000. If the average amount of cash
8 and liquid funds to be kept on hand during the year will
9 exceed $500,000, the policy or policies shall be for an
10 additional principal sum of $500 for each $1,000 or fraction
11 thereof in excess of $500,000. From time to time the Director
12 may determine the amount of cash and liquid funds kept on
13 hand by an ambulatory currency exchange and shall require it
14 to submit such additional policies as are determined to be
15 required within the limits of this Section. No ambulatory
16 currency exchange subject to this Section shall be required
17 to furnish more than one policy of insurance if the policy
18 furnished insures it against the foregoing losses at all
19 locations served by it.
20 Any such policy may contain a condition that the insured
21 assumes a portion of the loss, provided the insured shall
22 file with such policy a sworn financial statement indicating
23 its ability to act as self-insurer in the amount of such
24 deductible portion of the policy without prejudice to the
25 safety of any funds belonging to its customers. If the
26 Director is not satisfied as to the financial ability of the
27 ambulatory currency exchange, he may require it to deposit
28 cash or United States Government Bonds in the amount of part
29 or all of the deductible portion of the policy.
30 (Source: P.A. 86-432.)
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.