093_HB2425eng HB2425 Engrossed 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 HB2425 Engrossed -2- LRB093 08185 JLS 08392 b 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 Engrossed -3- LRB093 08185 JLS 08392 b 1 becoming law.