6.1-372 - (Repealed effective October 1, 2010) Application; financial statements; application fee; surety bond; alternative security device.
§ 6.1-372. (Repealed effective October 1, 2010) Application; financialstatements; application fee; surety bond; alternative security device.
A. Applications for a license shall be made on forms furnished by theCommission and shall set forth the name and address of the applicant, whichshall be a corporation, limited liability company, or other legal orcommercial entity, a description of the manner in which and the locations atwhich it proposes to do business, and such additional relevant information asthe Commission requires. The application shall be accompanied by such auditedfinancial statements as the Commission may require, an application fee of$1,000 and, except as provided in subsection B, a surety bond satisfactory tothe Commission in the principal amount as determined by the Commission butnot less than $25,000 nor more than $1 million, and conditioned as theCommission may require for the benefit of purchasers, payees, and holders ofmoney orders sold by the licensee and its authorized delegates in thisCommonwealth, and for the benefit of purchasers of money transmissionservices. If any material information provided to the Commission in anapplication changes during the investigation period, the applicant shallimmediately notify the Commission. The application fee shall not berefundable in any event. The fee shall not be abated by the expiration,surrender, or revocation of the license.
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 this Commonwealth, or of a city, county, town or otherpolitical subdivision of this Commonwealth, in an aggregate amount, basedupon the principal amount or market value, whichever is lower, of not lessthan the amounts required by the Commission pursuant to subsection A. Suchcash or securities shall be deposited and held to secure obligationsestablished in subsection A, but the licensee shall be entitled to (i)receive all interest and dividends thereon and (ii) substitute, with theCommission's prior approval, other securities for those deposited. TheCommission may also direct the licensee, for good cause shown, to substituteother securities for those deposited.
C. The security device required by this section shall remain in place forfive years after a licensee under this chapter ceases money order sales ormoney transmission activities within this Commonwealth. However, theCommission may permit the security device to be reduced or eliminated priorto that time to the extent the amount of such licensee's money orders andmoney transmission transactions outstanding in this Commonwealth are reduced.The Commission may also permit any such licensee to substitute a letter ofcredit, or such other form of security device as may be acceptable to theCommission, for the security device in place at the time the applicant ceasesmoney order sales or money transmission activities in this Commonwealth.
(1974, c. 578; 1987, c. 283; 1990, c. 259; 1992, c. 283; 1994, c. 889; 1996,c. 274; 2001, c. 372; 2009, c. 346.)