Administrative Code

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Virginia Administrative Code
Title 10. Finance and Financial Institutions
Agency 5. State Corporation Commission
Chapter 120. Money Order Sellers and Money Transmitters
4/20/2019

10VAC5-120-30. Alternative to Surety Bond.

A. As an alternative to the surety bond required under 10VAC5-120-20, in whole or in part, a licensee may be permitted to substitute the deposit of certain property with a bank, trust company or savings institution authorized to conduct business in Virginia. Such deposited property, other than cash, shall be valued at the lower of face or market value for the purposes of this regulation.

B. The deposited property may consist only of cash, or securities issued or guaranteed by the United States or any agency or instrumentality thereof, or securities issued by the Commonwealth of Virginia or any political subdivision thereof. The commissioner shall determine the amount of property deposit to be required of a licensee in accordance with the factors and limitations set forth in 10VAC5-120-20.

C. The property deposit shall be made upon the commissioner's authorization, and pursuant to a written agreement using a form prescribed by the commissioner. The agreement shall provide, among other things, that the commissioner shall have the authority to permit or require the substitution or liquidation of property held under the agreement, and that interest and dividends attributable to the property will be paid to the licensee making the deposit.

D. If a licensee ceases money order sales and money transmission in the Commonwealth of Virginia and surrenders its license, the commissioner shall have authority to permit reduction or elimination of the property deposit to the extent that the former licensee's obligations arising from its licensed business are reduced or eliminated, and shall have authority to permit the substitution of other means of security for the property deposit.

Statutory Authority

§ 6.2-1913 of the Code of Virginia.

Historical Notes

Derived from Volume 12, Issue 22, eff. July 1, 1996.

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