State of Illinois
2017 and 2018


Introduced 2/15/2018, by Sen. Chapin Rose


205 ILCS 657/30

    Amends the Transmitters of Money Act. Provides that a money transmitter applicant or a money transmitter licensee shall post a bond in the amount of $50,000 or an amount equal to 1% of all Illinois-based activity, whichever is greater (rather than the greater of $100,000 or an amount equal to the daily average of outstanding payment instruments for the preceding 12 months or operational history). Effective immediately.

LRB100 16046 SMS 31165 b






SB3084LRB100 16046 SMS 31165 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Transmitters of Money Act is amended by
5changing Section 30 as follows:
6    (205 ILCS 657/30)
7    Sec. 30. Surety bond.
8    (a) An applicant for a license shall post and a licensee
9must maintain with the Director a bond or bonds issued by
10corporations qualified to do business as surety companies in
11this State.
12    (b) The applicant or licensee shall post a bond in the
13amount of $50,000 or an amount equal to 1% of all
14Illinois-based activity, whichever is greater, the greater of
15$100,000 or an amount equal to the daily average of outstanding
16payment instruments for the preceding 12 months or operational
17history, whichever is shorter, up to a maximum amount of
18$2,000,000. When the amount of the required bond exceeds
19$1,000,000, the applicant or licensee may, in the alternative,
20post a bond in the amount of $1,000,000 plus a dollar for
21dollar increase in the net worth of the applicant or licensee
22over and above the amount required in Section 20, up to a total
23amount of $2,000,000.



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1    (c) The bond must be in a form satisfactory to the Director
2and shall run to the State of Illinois for the benefit of any
3claimant against the applicant or licensee with respect to the
4receipt, handling, transmission, and payment of money by the
5licensee or authorized seller in connection with the licensed
6operations. A claimant damaged by a breach of the conditions of
7a bond shall have a right to action upon the bond for damages
8suffered thereby and may bring suit directly on the bond, or
9the Director may bring suit on behalf of the claimant.
10    (d) (Blank).
11    (e) (Blank).
12    (f) After receiving a license, the licensee must maintain
13the required bond plus net worth (if applicable) until 5 years
14after it ceases to do business in this State unless all
15outstanding payment instruments are eliminated or the
16provisions under the Revised Uniform Unclaimed Property Act
17have become operative and are adhered to by the licensee.
18Notwithstanding this provision, however, the amount required
19to be maintained may be reduced to the extent that the amount
20of the licensee's payment instruments outstanding in this State
21are reduced.
22    (g) If the Director at any time reasonably determines that
23the required bond is insecure, deficient in amount, or
24exhausted in whole or in part, he may in writing require the
25filing of a new or supplemental bond in order to secure
26compliance with this Act and may demand compliance with the



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1requirement within 30 days following service on the licensee.
2(Source: P.A. 100-22, eff. 1-1-18.)
3    Section 99. Effective date. This Act takes effect upon
4becoming law.