2010 Code of Virginia
Title 6.2 - FINANCIAL INSTITUTIONS AND SERVICES.
Chapter 19 - Money Order Sellers and Money Transmitters (6.2-1900 thru 6.2-1921)
6.2-1904 - (Effective October 1, 2010) Bond required.

§ 6.2-1904. (Effective October 1, 2010) Bond required.

A. The application for a license shall be accompanied by a surety bond satisfactory to the Commission in the principal amount as determined by the Commission. The amount of the bond shall be not less than $25,000 nor more than $ 1 million. The bond shall be conditioned as the Commission may require for the benefit of purchasers, payees, and holders of money orders sold by the licensee and its authorized delegates in the Commonwealth, and for the benefit of purchasers of money transmission services. If any material information provided to the Commission in an application changes during the investigation period, the applicant shall immediately notify the Commission.

B. As an alternative security device and in lieu of the surety bond required by subsection A, a license applicant may deposit with a financial institution designated by such applicant and approved by the Commission for that purpose, cash, stocks and bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States, or of the Commonwealth, or of a locality or other political subdivision of the Commonwealth, in an aggregate amount, based upon the principal amount or market value, whichever is lower, of not less than the amounts required by the Commission pursuant to subsection A. Such cash or securities shall be deposited and held to secure obligations established in subsection A, but the licensee shall be entitled to (i) receive all interest and dividends thereon and (ii) substitute, with the Commission's prior approval, other securities for those deposited. The Commission may also direct the licensee, for good cause shown, to substitute other securities for those deposited.

C. The security device required by this section shall remain in place for five years after a licensee ceases money order sales or money transmission activities within the Commonwealth. The Commission may permit the security device to be reduced or eliminated prior to that time to the extent the amount of such licensee's money orders and money transmission transactions outstanding in the Commonwealth are reduced. The Commission may also permit any licensee to substitute a letter of credit, or such other form of security device as may be acceptable to the Commission, for the security device in place at the time the licensee ceases money order sales or money transmission activities 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.)