§ 6.2-1904. (Effective October 1, 2010) Bond required.
A. The application for a license shall be accompanied by a surety bondsatisfactory to the Commission in the principal amount as determined by theCommission. The amount of the bond shall be not less than $25,000 nor morethan $ 1 million. The bond shall be conditioned as the Commission may requirefor the benefit of purchasers, payees, and holders of money orders sold bythe licensee and its authorized delegates in the Commonwealth, and for thebenefit of purchasers of money transmission services. If any materialinformation provided to the Commission in an application changes during theinvestigation period, the applicant shall immediately notify the Commission.
B. As an alternative security device and in lieu of the surety bond requiredby subsection A, a license applicant may deposit with a financial institutiondesignated by such applicant and approved by the Commission for that purpose,cash, stocks and bonds, notes, debentures or other obligations of the UnitedStates or any agency or instrumentality thereof, or guaranteed by the UnitedStates, or of the Commonwealth, or of a locality or other politicalsubdivision of the Commonwealth, in an aggregate amount, based upon theprincipal amount or market value, whichever is lower, of not less than theamounts required by the Commission pursuant to subsection A. Such cash orsecurities shall be deposited and held to secure obligations established insubsection A, but the licensee shall be entitled to (i) receive all interestand dividends thereon and (ii) substitute, with the Commission's priorapproval, other securities for those deposited. The Commission may alsodirect the licensee, for good cause shown, to substitute other securities forthose deposited.
C. The security device required by this section shall remain in place forfive years after a licensee ceases money order sales or money transmissionactivities within the Commonwealth. The Commission may permit the securitydevice to be reduced or eliminated prior to that time to the extent theamount of such licensee's money orders and money transmission transactionsoutstanding in the Commonwealth are reduced. The Commission may also permitany licensee to substitute a letter of credit, or such other form of securitydevice as may be acceptable to the Commission, for the security device inplace at the time the licensee ceases money order sales or money transmissionactivities in the Commonwealth.
(1974, c. 578, § 6.1-372; 1987, c. 283; 1990, c. 259; 1992, c. 283; 1994, c.889; 1996, c. 274; 2001, c. 372; 2009, c. 346; 2010, c. 794.)
§ 6.2-1904. (Effective October 1, 2010) Bond required.
A. The application for a license shall be accompanied by a surety bondsatisfactory to the Commission in the principal amount as determined by theCommission. The amount of the bond shall be not less than $25,000 nor morethan $ 1 million. The bond shall be conditioned as the Commission may requirefor the benefit of purchasers, payees, and holders of money orders sold bythe licensee and its authorized delegates in the Commonwealth, and for thebenefit of purchasers of money transmission services. If any materialinformation provided to the Commission in an application changes during theinvestigation period, the applicant shall immediately notify the Commission.
B. As an alternative security device and in lieu of the surety bond requiredby subsection A, a license applicant may deposit with a financial institutiondesignated by such applicant and approved by the Commission for that purpose,cash, stocks and bonds, notes, debentures or other obligations of the UnitedStates or any agency or instrumentality thereof, or guaranteed by the UnitedStates, or of the Commonwealth, or of a locality or other politicalsubdivision of the Commonwealth, in an aggregate amount, based upon theprincipal amount or market value, whichever is lower, of not less than theamounts required by the Commission pursuant to subsection A. Such cash orsecurities shall be deposited and held to secure obligations established insubsection A, but the licensee shall be entitled to (i) receive all interestand dividends thereon and (ii) substitute, with the Commission's priorapproval, other securities for those deposited. The Commission may alsodirect the licensee, for good cause shown, to substitute other securities forthose deposited.
C. The security device required by this section shall remain in place forfive years after a licensee ceases money order sales or money transmissionactivities within the Commonwealth. The Commission may permit the securitydevice to be reduced or eliminated prior to that time to the extent theamount of such licensee's money orders and money transmission transactionsoutstanding in the Commonwealth are reduced. The Commission may also permitany licensee to substitute a letter of credit, or such other form of securitydevice as may be acceptable to the Commission, for the security device inplace at the time the licensee ceases money order sales or money transmissionactivities in the Commonwealth.
(1974, c. 578, § 6.1-372; 1987, c. 283; 1990, c. 259; 1992, c. 283; 1994, c.889; 1996, c. 274; 2001, c. 372; 2009, c. 346; 2010, c. 794.)
§ 6.2-1904. (Effective October 1, 2010) Bond required.
A. The application for a license shall be accompanied by a surety bondsatisfactory to the Commission in the principal amount as determined by theCommission. The amount of the bond shall be not less than $25,000 nor morethan $ 1 million. The bond shall be conditioned as the Commission may requirefor the benefit of purchasers, payees, and holders of money orders sold bythe licensee and its authorized delegates in the Commonwealth, and for thebenefit of purchasers of money transmission services. If any materialinformation provided to the Commission in an application changes during theinvestigation period, the applicant shall immediately notify the Commission.
B. As an alternative security device and in lieu of the surety bond requiredby subsection A, a license applicant may deposit with a financial institutiondesignated by such applicant and approved by the Commission for that purpose,cash, stocks and bonds, notes, debentures or other obligations of the UnitedStates or any agency or instrumentality thereof, or guaranteed by the UnitedStates, or of the Commonwealth, or of a locality or other politicalsubdivision of the Commonwealth, in an aggregate amount, based upon theprincipal amount or market value, whichever is lower, of not less than theamounts required by the Commission pursuant to subsection A. Such cash orsecurities shall be deposited and held to secure obligations established insubsection A, but the licensee shall be entitled to (i) receive all interestand dividends thereon and (ii) substitute, with the Commission's priorapproval, other securities for those deposited. The Commission may alsodirect the licensee, for good cause shown, to substitute other securities forthose deposited.
C. The security device required by this section shall remain in place forfive years after a licensee ceases money order sales or money transmissionactivities within the Commonwealth. The Commission may permit the securitydevice to be reduced or eliminated prior to that time to the extent theamount of such licensee's money orders and money transmission transactionsoutstanding in the Commonwealth are reduced. The Commission may also permitany licensee to substitute a letter of credit, or such other form of securitydevice as may be acceptable to the Commission, for the security device inplace at the time the licensee ceases money order sales or money transmissionactivities in the Commonwealth.
(1974, c. 578, § 6.1-372; 1987, c. 283; 1990, c. 259; 1992, c. 283; 1994, c.889; 1996, c. 274; 2001, c. 372; 2009, c. 346; 2010, c. 794.)
