US Laws, Codes, Statutes & Cases

                                  TITLE  26
                              BANKS AND BANKING
                                  CHAPTER 29
                              MONEY TRANSMISSION
    26-2908.  BOND OR OTHER SECURITY DEVICE. (1) Each application must be
accompanied by a surety bond, irrevocable letter of credit or such other
similar security device, hereinafter referred to as security device,
acceptable to the director in the amount of ten thousand dollars ($10,000). If
the applicant proposes to engage in business under the provisions of this
chapter at more than one (1) location, through authorized representatives or
otherwise, then the amount of the security device will be increased by five
thousand dollars ($5,000) per location, up to a maximum of five hundred
thousand dollars ($500,000). The security device shall be in a form
satisfactory to the director and shall run to the state for the benefit of any
claimants against the licensee to secure the faithful performance of the
obligations of the licensee with respect to the receipt, handling,
transmission, and payment of money in connection with either the sale and
issuance of payment instruments and the transmission of money. In the case of
a bond, the aggregate liability of the surety in no event shall exceed the
principal sum of the bond. Claimants against the licensee or its authorized
representatives may themselves bring suit directly on the security device or
the director may bring suit on behalf of such claimants, either in one (1)
action or in successive actions. Permissible investments required in section
26-2906, Idaho Code, may be pledged as collateral for the surety bond,
irrevocable letter of credit, or similar security device required in this
section.
    (2)  In lieu of such security device or of any portion of the principal
thereof, as required in this section, the licensee may deposit with the
director, or with such banks in this state as the licensee may designate and
the director may approve, cash, interest-bearing 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 this state,
or of a city, county, town, school district or instrumentality of this state,
or guaranteed by this state, to an aggregate amount, based upon principal
amount or market value, whichever is lower, of not less than the amount of the
security device or portion thereof. The securities or cash, or both, shall be
deposited as aforesaid and held to secure the same obligations as would the
security device, but the depositor shall be entitled to receive all interest
and dividends thereon, shall have the right, with the approval of the
director, to substitute other securities for those deposited, and shall be
required to do so on written order of the director made for good cause shown.
    (3)  The security device shall remain in effect until cancellation, which
may occur only after thirty (30) days' written notice to the director.
Cancellation shall not affect any liability incurred or accrued during said
period.
    (4)  The security device or deposit in lieu thereof shall remain in place
for a period of two (2) years from the date the licensee ceases money
transmission operations in this state. Notwithstanding the preceding sentence,
the director shall permit the security device or deposit in lieu thereof to be
reduced or eliminated prior to the expiration of the two (2) year
post-cessation period to the extent that the amount of the licensee's payment
instruments outstanding in this state are reduced. The director shall also
permit a licensee to substitute a letter of credit or such other form of
security device acceptable to the director for the security device, or deposit
in lieu thereof, in place at the time the licensee ceases money transmission
operations in this state.
    (5)  Two (2) years following the cessation of money transmission
operations in this state, a former licensee has the option to transfer any
funds held to pay outstanding payment instruments to the state tax commission,
who shall administer said funds in accordance with chapter 5, title 14, Idaho
Code.