§135.500. Minimum Net Worth or Surety Bond Requirement

a)         In lieu of the minimum net worth requirement set forth in Section 5-50 of the Act, the seller may post a surety bond issued by a surety company authorized to do business in this State.  The surety bond shall:

 

1)         be in an amount equivalent to the aggregate of the amount of outstanding guarantees on sales made in this State within the meaning of Section 5-80 of the Act;

 

2)         shall remain in effect for the duration of the guarantee(s) or representation(s) giving rise to the surety bond requirement; and

 

3)         shall be in favor of this State for the benefit of purchasers.

 

b)         Any sale made in this State within the meaning of Section 5-80 of the Act which makes use of representations of guarantee pursuant to Section 5-5.10(a)(4) of the Act when the seller knows or reasonably should know that the guarantee is not covered or is insufficiently covered in the aggregate with other guarantees of the seller, is a per se violation of Section 5-95(3) of the Act.

 

(Source:  Amended at 22 Ill. Reg. 9571, effective May 20, 1998)