Surety bond or irrevocable letter of credit required, costs, amount,special examinations.
361.711. Each application for a license shall be accompanied by acorporate surety bond in the principal sum of one hundred thousand dollars.The bond shall be in form satisfactory to the director and shall be issuedby a bonding company or insurance company authorized to do business in thisstate, to secure the faithful performance of the obligations of theapplicant and the agents and subagents of the applicant with respect to thereceipt, transmission, and payment of money in connection with the sale orissuance of checks and also to pay the costs incurred by the division toremedy any breach of the obligations of the applicant subject to the bondor to pay examination costs of the division owed and not paid by theapplicant. Upon license renewal, the required amount of bond shall be asfollows:
(1) For all licensees selling payment instruments or stored valuecards, five times the high outstanding balance from the previous year witha minimum of one hundred thousand dollars and a maximum of one milliondollars;
(2) For all licensees receiving money for transmission, five timesthe greatest amount transmitted in a single day during the previous yearwith a minimum of one hundred thousand dollars and a maximum of one milliondollars.
If in the opinion of the director the bond shall at any time appear to beinadequate, insecure, exhausted, or otherwise doubtful, additional bond inform and with surety satisfactory to the director shall be filed withinfifteen days after notice of the requirement is given to the licensee bythe director. An applicant or licensee may, in lieu of filing any bondrequired under this section, provide the director with an irrevocableletter of credit, as defined in section 400.5-103, RSMo, issued by anystate or federal financial institution. Whenever in the director'sjudgment it is necessary or expedient, the director may perform a specialexamination of any person licensed under sections 361.700 to 361.727 withall authority under section 361.160 as though the licensee were a bank.The cost of such examination shall be paid by the licensee.
Surety bond or irrevocable letter of credit required, costs, amount,special examinations.
361.711. Each application for a license shall be accompanied by acorporate surety bond in the principal sum of one hundred thousand dollars.The bond shall be in form satisfactory to the director and shall be issuedby a bonding company or insurance company authorized to do business in thisstate, to secure the faithful performance of the obligations of theapplicant and the agents and subagents of the applicant with respect to thereceipt, transmission, and payment of money in connection with the sale orissuance of checks and also to pay the costs incurred by the division toremedy any breach of the obligations of the applicant subject to the bondor to pay examination costs of the division owed and not paid by theapplicant. Upon license renewal, the required amount of bond shall be asfollows:
(1) For all licensees selling payment instruments or stored valuecards, five times the high outstanding balance from the previous year witha minimum of one hundred thousand dollars and a maximum of one milliondollars;
(2) For all licensees receiving money for transmission, five timesthe greatest amount transmitted in a single day during the previous yearwith a minimum of one hundred thousand dollars and a maximum of one milliondollars.
If in the opinion of the director the bond shall at any time appear to beinadequate, insecure, exhausted, or otherwise doubtful, additional bond inform and with surety satisfactory to the director shall be filed withinfifteen days after notice of the requirement is given to the licensee bythe director. An applicant or licensee may, in lieu of filing any bondrequired under this section, provide the director with an irrevocableletter of credit, as defined in section 400.5-103, RSMo, issued by anystate or federal financial institution. Whenever in the director'sjudgment it is necessary or expedient, the director may perform a specialexamination of any person licensed under sections 361.700 to 361.727 withall authority under section 361.160 as though the licensee were a bank.The cost of such examination shall be paid by the licensee.
Surety bond or irrevocable letter of credit required, costs, amount,special examinations.
361.711. Each application for a license shall be accompanied by acorporate surety bond in the principal sum of one hundred thousand dollars.The bond shall be in form satisfactory to the director and shall be issuedby a bonding company or insurance company authorized to do business in thisstate, to secure the faithful performance of the obligations of theapplicant and the agents and subagents of the applicant with respect to thereceipt, transmission, and payment of money in connection with the sale orissuance of checks and also to pay the costs incurred by the division toremedy any breach of the obligations of the applicant subject to the bondor to pay examination costs of the division owed and not paid by theapplicant. Upon license renewal, the required amount of bond shall be asfollows:
(1) For all licensees selling payment instruments or stored valuecards, five times the high outstanding balance from the previous year witha minimum of one hundred thousand dollars and a maximum of one milliondollars;
(2) For all licensees receiving money for transmission, five timesthe greatest amount transmitted in a single day during the previous yearwith a minimum of one hundred thousand dollars and a maximum of one milliondollars.
If in the opinion of the director the bond shall at any time appear to beinadequate, insecure, exhausted, or otherwise doubtful, additional bond inform and with surety satisfactory to the director shall be filed withinfifteen days after notice of the requirement is given to the licensee bythe director. An applicant or licensee may, in lieu of filing any bondrequired under this section, provide the director with an irrevocableletter of credit, as defined in section 400.5-103, RSMo, issued by anystate or federal financial institution. Whenever in the director'sjudgment it is necessary or expedient, the director may perform a specialexamination of any person licensed under sections 361.700 to 361.727 withall authority under section 361.160 as though the licensee were a bank.The cost of such examination shall be paid by the licensee.
