Public Act 094-0538
 
SB1629 Enrolled LRB094 10660 MKM 41020 b

    AN ACT concerning regulation.
 
    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 6 as follows:
 
    (205 ILCS 405/6)  (from Ch. 17, par. 4813)
    Sec. 6. Insurance against loss.
    (a) Every applicant for a license hereunder shall, after
his application for a license has been approved, file with and
have approved by the Secretary of Financial and Professional
Regulation Director, a policy or policies of insurance issued
by an insurance company or indemnity company authorized to do
business under the law of this State, which shall insure the
applicant against loss by theft, burglary, robbery or forgery
in a principal sum as hereinafter provided; if the average
amount of cash and liquid funds to be kept on hand in the
office of the community currency exchange during the year will
not be in excess of $10,000 the policy or policies shall be in
the principal sum of $10,000. If such average amount will be in
excess of $10,000, the policy or policies shall be for an
additional principal sum of $500 for each $1,000 or fraction
thereof of such excess over the original $10,000. From time to
time, the Secretary Director may determine the amount of cash
and liquid funds on hand in the office of any community
currency exchange and shall require the licensee to submit
additional policies if the same are determined to be necessary
in accordance with the requirements of this Section.
    However, any community currency exchange licensed under
this Act may meet the bonding requirements of this subsection
(a) by submitting evidence satisfactory to the Secretary that
the licensee is covered by a blanket bond that covers multiple
licensees. The blanket bond: (i) shall insure the licensee
against loss by theft, robbery, or forgery; (ii) shall be
issued by a bonding company authorized to do business in this
State; and (iii) shall be in the principal sum of an amount
equal to the maximum amount required under this Section for any
one licensee covered by the bond.
    Any such policy or policies, with respect to forgery, may
carry a condition that the community currency exchange assumes
the first $1,000 of each claim thereunder.
    (b) Before an ambulatory currency exchange shall sell or
issue money orders, it shall file with and have approved by the
Secretary Director, a policy or policies of insurance issued by
an insurance company or indemnity company authorized to do
business under the laws of this State, which shall insure such
ambulatory currency exchange against loss by theft, burglary,
robbery, forgery or embezzlement in the principal sum of not
less than $500,000. If the average amount of cash and liquid
funds to be kept on hand during the year will exceed $500,000,
the policy or policies shall be for an additional principal sum
of $500 for each $1,000 or fraction thereof in excess of
$500,000. From time to time the Secretary Director may
determine the amount of cash and liquid funds kept on hand by
an ambulatory currency exchange and shall require it to submit
such additional policies as are determined to be required
within the limits of this Section. No ambulatory currency
exchange subject to this Section shall be required to furnish
more than one policy of insurance if the policy furnished
insures it against the foregoing losses at all locations served
by it.
    Any such policy may contain a condition that the insured
assumes a portion of the loss, provided the insured shall file
with such policy a sworn financial statement indicating its
ability to act as self-insurer in the amount of such deductible
portion of the policy without prejudice to the safety of any
funds belonging to its customers. If the Secretary Director is
not satisfied as to the financial ability of the ambulatory
currency exchange, he may require it to deposit cash or United
States Government Bonds in the amount of part or all of the
deductible portion of the policy.
(Source: P.A. 92-271, eff. 8-7-01.)

Effective Date: 1/1/2006