Illinois General Assembly - Full Text of Public Act 093-0614
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Public Act 093-0614


 

Public Act 93-0614 of the 93rd General Assembly


Public Act 93-0614

HB2425 Enrolled                      LRB093 08185 JLS 08392 b

    AN ACT concerning currency exchanges.

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

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

    (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 Director a  surety  bond,  issued  by  a
bonding  company  authorized  to do business in this State in
the principal sum of $10,000.  Such bond  shall  run  to  the
Director  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 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 Director 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 $10,000, 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  Director  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 $2,000,000.
    (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
Director of a surety bond approved by the Director 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 Director 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 Director, it shall appear
that the average amount of such liability during the year has
exceeded $100,000, the Director shall require the licensee to
furnish a bond for the ensuing year, to be  approved  by  the
Director,  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. 86-432.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

Effective Date: 11/18/03