| Date: | 01/02/1997 |
|---|---|
| Organization: | Division of Banks |
| Docket Number: | 97-258 |
- This page, Summary of Selected Opinion 97-258, is offered by
- Division of Banks
Opinion
Opinion Summary of Selected Opinion 97-258
Table of Contents
Bond Requirements For Licensees
Mass. Gen. Laws ch. 169 § 2 requires a bond in the sum equal to twice the average weekly amount of money or equivalents transmitted to foreign countries and establishes a minimum bond of $50,000. Additionally, a licensee carrying on business at more than one location is required to post only one bond equal to twice the average total weekly amount of money transmitted from all locations or $50,000, whichever is greater. This section also authorizes the Division to increase the bond at any time to such an amount determined to be necessary by an examination. The Division determines the method for reporting and calculating applicable bond requirements. Pursuant to Mass. Gen. Laws ch. 169 § 2, it has been the consistent position of the Division to calculate bond requirements at the license renewal stage using data submitted by the licensee in its prior year annual report. Accordingly, a licensee is required to increase its bond to the amount determined by the Division as a prerequisite to the Division's issuance of a renewal license. This bond should be maintained until the expiration of the applicable licensing period.