Ill. Admin. Code tit. 14 § 135.500

Current through Register Vol. 49, No. 2, January 10, 2025

Section 135.500 - Minimum Net Worth or Surety Bond Requirement

a) In lieu of the minimum net worth requirement set forth in Section 5-50 of the Act, the seller may post a surety bond issued by a surety company authorized to do business in this State. The surety bond shall:

1) be in an amount equivalent to the aggregate of the amount of outstanding guarantees on sales made in this State within the meaning of Section 5-80 of the Act;

2) shall remain in effect for the duration of the guarantee(s) or representation(s) giving rise to the surety bond requirement; and

3) shall be in favor of this State for the benefit of purchasers.

b) Any sale made in this State within the meaning of Section 5-80 of the Act which makes use of representations of guarantee pursuant to Section 5-5.10(a)(4) of the Act when the seller knows or reasonably should know that the guarantee is not covered or is insufficiently covered in the aggregate with other guarantees of the seller, is a per se violation of Section 5-95(3) of the Act.

Ill. Admin. Code tit. 14, § 135.500

Amended at 22 Ill. Reg. 9571, effective May 20, 1998