Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 1140 - Division of Finance › Chapter 12 - Sale of Checks (Money Order) Licensees › Section 20 CSR 1140-12.010 - Sale of Checks (Money Order) Bonds

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: All licensees, pursuant to the Missouri sale
				  of checks law (sections 361.700-361.727, RSMo), must post a bond or an
				  irrevocable letter of credit to insure faithful performance and that all checks
				  (that is, money orders and travelers checks) will be paid. This rule sets the
				  minimum acceptable standards for those bonds or irrevocable letters of
				  credit.
No sale of checks license will be issued or renewed without
				  the posting of a corporate surety bond or irrevocable letter of credit in the
				  amount of one (1) million dollars; provided, however, that a lesser bond or
				  letter of credit in an amount equal to five (5) times the high outstanding
				  balance of checks sold in Missouri by the applicant and its agents during the
				  previous calendar year rounded to the nearest one thousand dollars ($1,000)
				  will be acceptable upon a verification of the high outstanding balance and
				  provided further that in no event may the bond or letter of credit be less than
				  twenty-five thousand dollars ($25,000). Verification shall be a sworn
				  statement, on a form provided by the director, of the high outstanding balance;
				  documents and records to prove such sworn statement must be maintained at the
				  principal office of the licensee and be available for examination by the
				  Division of Finance at all reasonable times and failure to maintain such
				  records will subject the licensee to revocation per sections 361.700-361.727,
				  RSMo. Money order accounts must be dedicated and no funds commingled with other
				  funds of the agent. For purposes of this rule, the high outstanding balance of
				  checks shall mean the highest dollar amount of checks sold but not yet paid on
				  any day. The bond or irrevocable letter of credit shall be in a form
				  satisfactory to the director and, if a bond, shall be issued by a bonding
				  company or insurance company authorized to do business in Missouri or, if an
				  irrevocable letter of credit, be issued by a federally insured financial
				  institution, to secure the faithful performance of the obligations of the
				  applicant and the receipt, transmission and payment of the money in connection
				  with the sale or issuance of checks. At the time an application is forwarded to
				  an initial applicant and at the renewal of any existing license, the
				  applicant/renewal applicant must provide an affidavit declaring the high
				  outstanding balance of checks sold within Missouri during the previous calendar
				  year and must provide a bond or irrevocable letter of credit sufficient to
				  cover all those liabilities within the limits stated here. In consideration of
				  the tasks necessary to complete the process, compliance with the verification
				  procedures for the licensing year which began April 15, 1995, will be
				  considered timely if completed by July 17, 1995.
*Original authority: 361.727, RSMo 1984, amended
					 1993.