Ill. Admin. Code tit. 14 § 200.506

Current through Register Vol. 48, No. 45, November 8, 2024

Section 200.506 - Certificate of Deposit

a) A franchisor who posts a Certificate of Deposit must post one Certificate of Deposit for each franchise that is authorized for sale by the Administrator. Each Certificate of Deposit shall be in an amount equal to the initial franchise fee.

b) Each Certificate of Deposit is to be deposited with a federally insured savings institution and issued in the name of the Administrator for the benefit of the franchisee. The Certificate and accrued interest thereon shall be renewed for such periods necessary to maintain it until such time that the Administrator determines that it may be released either to the franchisor or to franchisees upon notice to both parties.

Ill. Admin. Code tit. 14, § 200.506

Added at 12 Ill. Reg. 9424, effective May 18, 1988