75-15-11 - Accompanying financial statement and bond. - Mississippi Statutes

§ 75-15-11. Accompanying financial statement and bond.
 

Each application for a license shall be accompanied by: 
 

(a) Certified financial statements, reasonably satisfactory to the commissioner, showing that the applicant has a net worth of at least Twenty-five Thousand Dollars ($25,000.00) plus Fifteen Thousand Dollars ($15,000.00) for each location in excess of one (1) at which the applicant proposes to sell checks in this state, computed according to generally accepted accounting principles, but in no event shall the net worth be required to be in excess of Two Hundred Fifty Thousand Dollars ($250,000.00). 

(b) A surety bond issued by a bonding company or insurance company authorized to do business in this state, in the principal sum of Twenty-five Thousand Dollars ($25,000.00) and in an additional principal sum of Fifteen Thousand Dollars ($15,000.00) for each location, in excess of one (1) at which the applicant proposes to sell checks in this state, but in no event shall the bond be required to be in excess of Two Hundred Fifty Thousand Dollars ($250,000.00). If the bond accompanying the application be in a principal sum of less than Two Hundred Fifty Thousand Dollars ($250,000.00), the application shall also be accompanied by a list of the locations at which the business is to be conducted. The bond shall be in form satisfactory to the commissioner and shall run to the state for the benefit of any claimants against the applicant or his agents to secure the faithful performance of the obligations of the applicant and his agents with respect to the receipt, handling, transmission and payment of money in connection with the sale of the checks in Mississippi. The aggregate liability of the surety in no event shall exceed the principal sum of the bond. The surety on the bond shall have the right to cancel such bond upon giving sixty (60) days' notice in writing to the commissioner and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of said cancellation. Such claimants against the applicant or his agents may themselves bring suit directly on the bond, or the Attorney General may bring suit thereon in behalf of such claimants, either in one (1) action or successive actions. 

(c) In lieu of such corporate surety bond the applicant may deposit with the State Treasurer bonds or other obligations of the United States or guaranteed by the United States or bonds or other obligations of this state or of any municipal corporation, county, or other political subdivision or agency of this state, or certificates of deposit of national or state banks doing business in Mississippi, having an aggregate market value at least equal to that of the corporate surety bond otherwise required. Such bonds or obligations or certificates of deposit shall be deposited with the State Treasurer to secure the same obligations as would a corporate surety bond, but the depositor shall be entitled to receive all interest and dividends thereon and shall have the right to substitute other bonds or obligations or certificates of deposit for those deposited, with the approval of the commissioner, and shall be required so to do on order of the commissioner made for good cause shown. The State Treasurer shall provide for custody of such bonds or obligations or certificates of deposits by a qualified trust company or bank located in the State of Mississippi or by any Federal Reserve Bank. The compensation, if any, of the custodian for acting as such under this section shall be paid by the depositing licensee. 
 

Sources: Codes, 1942, § 5131-06; Laws,  1966, ch. 257, § 6; Laws,  1995, ch. 373, § 2, eff from and after July 1, 1995.