§100.50. Suitable Guaranty

In order to receive the Secretary's certification of a qualified security procedure, an applicant is required to:

 

a)         Provide suitable guaranty in the form of a surety bond executed by an insurer lawfully operating in this State or an irrevocable letter of credit issued by a financial institution lawfully operating in this State in the amount of $100,000.

 

b)         The form of the suitable guaranty or letter of credit must:

 

1)         identify the insurer;

 

2)         identify the applicant;

 

3)         be made payable to the Secretary for the purpose of persons holding qualified rights of payment against the applicant named as principal of the bond or customer of the letter of credit;

 

4)         state that the bond or letter of credit is issued under the Act; and

 

5)         specify a term of effectiveness of at least five years.