§ 9-587 — Surety bond or other required security

(a) An applicant for a money transmission license shall provide and a licensee at all times shall maintain security consisting of a surety bond in a form satisfactory to the commissioner or, with the commissioner's approval, a deposit instead of a bond in accordance with this section.
(b) The amount of the required security shall be:
(1) The greater of $200,000 or an amount equal to 100% of the licensee's average daily money transmission liability in Kansas calculated for the most recently completed three-month period, up to a maximum of $1,000,000; or
(2) $200,000, if the licensee's tangible net worth exceeds 10% of total assets.
(c) A licensee that maintains a bond in the maximum amount provided for in subsection (b) shall not be required to calculate its average daily money transmission liability in Kansas for purposes of this section.
(d) A licensee may exceed the maximum required bond amount pursuant to K.S.A. 2024 Supp. 9-589, and amendments thereto.
(e) This section shall take effect on and after January 1, 2025.

Legislative History

L. 2024, ch. 64, § 33; July 1.