Oklahoma § 6-2108 - Surety bond or irrevocable letter of credit

§ 6-2108. Surety bond or irrevocable letter of credit

Each approved applicant shall furnish a corporate surety bond in

the principal sum of One Hundred Thousand Dollars ($100,000.00) for

one (1) to fifteen (15) locations within this state at which checks

of the licensee are issued or sold, Two Hundred Fifty Thousand

Dollars ($250,000.00) for sixteen (16) to five hundred (500)

locations within this state at which checks of the licensee are

issued or sold, One Million Dollars ($1,000,000.00) for five hundred

one (501) to eight hundred (800) locations within this state at

which checks of the licensee are issued or sold, or One Million Five

Hundred Thousand Dollars ($1,500,000.00) for over eight hundred

(800) locations, within this state at which checks of the licensee

are issued or sold, but in no event shall the bond be required to be

in excess of One Million Five Hundred Thousand Dollars

($1,500,000.00). A licensee may furnish a bond in the maximum

amount required by this section, or deposit securities equal to such

amount as provided in subsection (b) of Section 2109 of this title,

even though the locations in this state at which checks of the

licensee are issued or sold do not total a number requiring a bond

or a deposit of securities in such maximum amount. Each application

for a license or for the renewal of a license shall be accompanied

by a list of the locations, including agencies, at which the

applicant engages in the business of selling checks in this state.

The bond shall be conditioned that the obligor will faithfully

conform to and abide by the provisions of this act and will honestly

and faithfully apply all funds received and perform all obligations

and undertakings for exchange issued and sold under this act and

will pay to the state and to any person entitled thereto all money

that becomes due and owing to the state or to such person under the

provisions of this act because of any checks or exchange issued or

sold in this state by such licensee. The bond shall remain in force

and effect until canceled by the surety, which cancellation may be

had only upon thirty (30) days' written notice to the Commissioner.

Such cancellation shall not affect any liability incurred or accrued

prior to the termination of such thirty-day period.

Oklahoma Statutes - Title 6. Banks and Trust Companies

In lieu of the corporate surety bond required herein, the

Commissioner may in his discretion permit an approved applicant to

furnish an irrevocable letter of credit from a bank approved in

writing by the Commissioner in the same amount as would be required

for a corporate surety bond. A new irrevocable letter of credit

from a qualifying bank would be required within fifteen (15) days if

the bank originally issuing the irrevocable letter of credit refuses

to continue the letter of credit or is otherwise notified by the

Commissioner that the original bank is no longer qualified to issue

a letter of credit for the purposes described in this section.

Added by Laws 1961, p. 428, § 8. Amended by Laws 1988, c. 216, § 6,

eff. Nov. 1, 1988; Laws 1990, c. 104, § 3, eff. Sept. 1, 1990; Laws

2005, c. 48, § 20, eff. Nov. 1, 2005.