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
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