Illinois License Bond for Community Currency Exchanges

Category: Uncategorized
Published: Aug 26, 2011
SB 87/HB 159: License Bond – Currency Exchanges

This will increase the amount of the license bond for community currency exchanges from 10K to 50K. This provides services for cashing checks, drafts, money orders or any other acceptable evidences of money. The Director of Financial Institutions is permitted to require a larger bond amount. This cannot exceed the exchanges outstanding liabilities. This bond secures any liability the exchange inherited on any money orders, and for any sums due for unpaid checks, draft or money orders left with the exchange for collection, and for any liability incurred in connection with the services permitted under current law. This new bill will clarify this to include the payment of any penalties and fees incurred by the remitter in the case that a money order is returned unpaid. Under current law an exchange is permitted to provide a blanket bond for all licensees belonging to a statewide association of exchanges. This bill will increase the required amount of the blanket bond from $2 million to $10 million.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.

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