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Illinois bonds

Illinois — Community Currency Exchange Bond

Illinois community currency exchanges file annual security based on licensed locations: $25,000 per location, with a normal $350,000 aggregate for the licensee. Bring the full location list and any Department direction for additional security. This is the community-exchange filing, not the separate ambulatory or money-transmitter requirement.

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Recorded state
Illinois
Bond type
Check Cashing / Seller of Checks Bond
Category
Financial services

What this bond does

Provide annual approved security for the community currency-exchange license under Section 5 of the Illinois Currency Exchange Act.

Who needs it
The licensed community currency-exchange business and its approved locations. Each exchange requires a license; an ambulatory operation or a money-transmission business should use its own applicable requirements.
Who it protects
Section 5 protects creditors for ordinary-course money-order liabilities, including remitter charges when an order is returned unpaid; sums due to payees or endorsees of instruments left for collection; and public liabilities from covered services. It excludes the exchange's own-account and controlling-person transactions. This is not security for cash obtained to fund the exchange's operations or pay its own bills.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details for licensed locations and the two date fields

Use the community currency-exchange principal and each licensed location. Section 5(a)'s starting sum is $25,000 per licensed location up to a $350,000 aggregate for that licensee; the Secretary may require additional security based on covered liabilities. An amount suited to one site is not automatically the amount for a multi-location business.

Section 5(b) allows satisfactory evidence of a qualifying statewide association blanket covering multiple licensees. The current statutory aggregate for that blanket is at least $4 million. Membership alone is not evidence that this business is covered, and the association aggregate is not the ordinary per-location amount.

The posted community form asks separately for the twelve-month period ending April 30 and the license term ending December 31. Obtain the Department's required year entries and match each field to its own period. Do not copy the calendar-license date into every field or assume purchase creates an indefinite continuation.

Prepare the principal/exchange name and address, surety and address, penal sum, execution date, principal signatures/seals, applicable secretary attestation and surety attorney-in-fact signature. Complete the form's notarial acknowledgment for the signers. Use the Department's accepted current format and instructions for submission.

The statute's public protection has limits: money orders or liabilities for the exchange's own account or its controlling persons are excluded even if the resulting funds or property are used in operations. The form provides for a court action in the Director's name; follow the Department's claim directions rather than treating the undertaking as a business reimbursement policy.

Licensing remains a separate review, including the community-need investigation. The posted checklist asks for the application, individual questionnaires, financial statements, qualifying references, lease intent, financing information and evidence supporting the location's need. Annual reports and renewals remain necessary after security is approved.

Sources

Have these ready

  1. Confirm the community-exchange licensee and every covered licensed location.
  2. Match the Section 5 location sum and any additional-liability direction or actual blanket evidence.
  3. Obtain the correct April 30 bond-period and December 31 license-year entries.
  4. Arrange principal/surety execution, applicable attestation and the notarial acknowledgment.
  5. Complete the Department's licensing, community-need, annual-report and renewal requirements.

Questions about this bond

Does the bond cover money orders used to pay the exchange's own bills?

No. Section 5 excludes transactions for the exchange's own account and its controlling persons, including obtaining operating cash or paying their liabilities. The protected ordinary-course customer/public obligations are different.

Can qualifying association blanket coverage satisfy the requirement?

Section 5(b) allows evidence satisfactory to the Secretary of qualifying statewide association coverage. Confirm this licensee is actually covered; the current $4 million association aggregate is not a substitute for proof or the normal per-location calculation.

What follows Purchase Now?

Propeller's Illinois Community Currency Exchange application opens in a new tab. Match the licensee, locations, accepted Section 5 condition, required sum, both operative date fields and execution, then complete Department filing and licensing. Payment does not approve a new location or establish blanket membership coverage.

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