§240.1510. Definitions

a)         Bond means surety bond or other security in lieu thereof.

 

b)         Surety bond means an indemnity agreement in a sum certain payable to the Department, executed by the permittee as principal and which is supported by the guarantee of a corporation authorized to transact business as a surety in Illinois.  Surety bond does not include surplus line insurance procured by a surplus line producer.

 

c)         Other security means an indemnity agreement in a sum certain executed by the permittee as principal which is supported by the deposit with the Department of one or more of the following:

 

1)         An irrevocable letter of credit of any bank organized or authorized to transact business in Illinois, payable only to the Department upon presentation;

 

2)         Certificates of deposit, drawn on a federally insured bank, made payable or assigned to the Department and placed in its possession.

 

(Source:  Amended at 22 Ill. Reg. 22314, effective December 14, 1998)