Okla. Admin. Code § 85:15-3-3

Current through Vol. 42, No. 4, November 1, 2024

Section 85:15-3-3 - Security

(a) A surety bond, letter of credit, or other similar security acceptable to the Commissioner in the amount of $50,000 plus $10,000 per location of each authorized delegate, not exceeding a total of $500,000, must accompany an application for a license. The issuer of the security must be authorized to do business in this state and in good standing under Oklahoma law (if applicable) and the law of its state of organization.

(b) Security must be in a form satisfactory to the Commissioner and payable to the Department for the benefit of (1) any claimant against the licensee and/or its authorized delegates to secure the faithful performance of the obligations of the licensee with respect to money transmission; and (2) any costs, expenses, and fees (including attorneys fees) incurred by the Department in connection with enforcement of the Act with respect to the licensee and its authorized delegates.

(c) The aggregate liability on a surety bond may not exceed the principal sum of the bond. A claimant against a licensee may maintain an action on the bond, or the Commissioner may maintain an action on behalf of the claimant and/or the Department.

(d) A surety bond must cover claims for so long as the Commissioner specifies, but for at least five years after the licensee ceases to provide money transmission services in this State. However, the Commissioner may permit the amount of security to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee's obligations outstanding in this State is reduced. The Commissioner may permit a licensee to substitute another form of security acceptable to the Commissioner for the security effective at the time the licensee ceases to provide money services in this State.

(e) The Commissioner may increase the amount of security required to a maximum of $1,000,000 if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria.

Okla. Admin. Code § 85:15-3-3

Added at 24 Ok Reg 843, eff 5-11-07