Bill Text: IL SB3084 | 2017-2018 | 100th General Assembly | Engrossed
Bill Title: 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.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2019-01-09 - Session Sine Die [SB3084 Detail]
Download: Illinois-2017-SB3084-Engrossed.html
| |||||||
| |||||||
| |||||||
1 | AN ACT concerning regulation.
| ||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||
3 | represented in the General Assembly:
| ||||||
4 | Section 5. The Transmitters of Money Act is amended by | ||||||
5 | changing 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 | ||||||
9 | must maintain with the Director a bond or bonds issued by | ||||||
10 | corporations
qualified to do business as surety companies in | ||||||
11 | this State.
| ||||||
12 | (b) The applicant or licensee shall post a bond in the | ||||||
13 | amount of $50,000 or an amount equal to 1% of all | ||||||
14 | Illinois-based activity, whichever is greater, the greater
of | ||||||
15 | $100,000
or an amount equal to the daily average of outstanding | ||||||
16 | payment instruments
for the preceding 12 months or operational | ||||||
17 | history, 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, | ||||||
20 | post a bond in
the amount of $1,000,000 plus a dollar for | ||||||
21 | dollar increase in the net worth of
the applicant or licensee | ||||||
22 | over and above the amount required in Section 20, up
to a total | ||||||
23 | amount of $2,000,000.
|
| |||||||
| |||||||
1 | (c) The bond must be in a form satisfactory to the Director | ||||||
2 | and shall run
to the State of Illinois for the benefit of any | ||||||
3 | claimant against the applicant
or licensee with respect to the | ||||||
4 | receipt, handling, transmission, and payment
of money by the | ||||||
5 | licensee or authorized seller in connection with the licensed
| ||||||
6 | operations. A claimant damaged by a breach of the conditions of | ||||||
7 | a
bond
shall have a right to action upon the bond for damages | ||||||
8 | suffered thereby and
may bring suit directly on the bond, or | ||||||
9 | the 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
| ||||||
13 | the required bond plus net worth (if applicable) until
5 years | ||||||
14 | after it ceases to do business in this State unless all | ||||||
15 | outstanding
payment instruments are eliminated or the | ||||||
16 | provisions under the Revised Uniform
Unclaimed Property Act | ||||||
17 | have become operative and are adhered to by the
licensee. | ||||||
18 | Notwithstanding this provision, however, the amount required | ||||||
19 | to be
maintained may be reduced to the extent that the amount | ||||||
20 | of the licensee's
payment instruments outstanding in this State | ||||||
21 | are reduced.
| ||||||
22 | (g) If the Director at any time reasonably determines that | ||||||
23 | the required bond
is insecure, deficient in amount, or
| ||||||
24 | exhausted in
whole or in part, he may in writing require the | ||||||
25 | filing of a new or supplemental
bond in order to secure | ||||||
26 | compliance with this Act and may
demand compliance with the |
| |||||||
| |||||||
1 | requirement 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 | ||||||
4 | becoming law.
|