(a) An applicant for a money transmission license shall provide, and a licensee at all times shall maintain, security consisting of a surety bond.
(b) (1) The surety bond under subsection (a) shall be in a form satisfactory to the Securities Commissioner and shall run to the State of Arkansas for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with money transmission.(2) The commissioner has the discretion to require the applicant to obtain additional security coverage to address related cybersecurity risks inherent in the applicant's business model as it relates to virtual currency transmission and to the extent the risks are not within the scope of the required surety bond.
(1) The surety bond under subsection (a) shall be in a form satisfactory to the Securities Commissioner and shall run to the State of Arkansas for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with money transmission.
(2) The commissioner has the discretion to require the applicant to obtain additional security coverage to address related cybersecurity risks inherent in the applicant's business model as it relates to virtual currency transmission and to the extent the risks are not within the scope of the required surety bond.
(c) The amount of the required security under this section shall be:(1) the greater of $100,000 or an amount equal to 100 percent of the licensee's average daily money transmission liability in this state, calculated for the most recently completed three-month period, up to a maximum of $500,000; or(2) if the licensee's tangible net worth exceeds 10 percent of total assets, then the licensee shall maintain a surety bond of $100,000.
(1) the greater of $100,000 or an amount equal to 100 percent of the licensee's average daily money transmission liability in this state, calculated for the most recently completed three-month period, up to a maximum of $500,000; or
(2) if the licensee's tangible net worth exceeds 10 percent of total assets, then the licensee shall maintain a surety bond of $100,000.
(d) A licensee that maintains a bond in the maximum amount provided for in subsection (c), as applicable, is not required to calculate its average daily money transmission liability in this state for purposes of § 23-55-702.
(e) A licensee may exceed the maximum required bond amount under § 23-55-702(a)(6).
(f) (1) A party having a claim against the licensee may bring suit directly on the surety bond, or the commissioner may bring suit on behalf of any claimants, either in one action or in successive actions.(2) Consumer claims shall be given priority in recovering from the surety bond.(3) Every bond shall provide for suit on the surety bond by a person who has a cause of action under this article.
(1) A party having a claim against the licensee may bring suit directly on the surety bond, or the commissioner may bring suit on behalf of any claimants, either in one action or in successive actions.
(2) Consumer claims shall be given priority in recovering from the surety bond.
(3) Every bond shall provide for suit on the surety bond by a person who has a cause of action under this article.
(g) (1) The surety bond shall remain in effect until cancellation, which may occur only after 60 days' written notice to the commissioner.(2) Cancellation shall not affect any liability incurred or accrued during that period.
(1) The surety bond shall remain in effect until cancellation, which may occur only after 60 days' written notice to the commissioner.
(2) Cancellation shall not affect any liability incurred or accrued during that period.
(h) (1) Except as provided by subdivision (h)(2), the surety bond shall remain in place for no less than 5 years after the licensee ceases money transmission operations in this state.(2) The commissioner may permit the surety bond to be reduced or eliminated before that time to the extent that the amount of the licensee's outstanding payment instruments, stored value obligations, and money transmitted in this state is reduced.
(1) Except as provided by subdivision (h)(2), the surety bond shall remain in place for no less than 5 years after the licensee ceases money transmission operations in this state.
(2) The commissioner may permit the surety bond to be reduced or eliminated before that time to the extent that the amount of the licensee's outstanding payment instruments, stored value obligations, and money transmitted in this state is reduced.