Florida Regulations 69V-160.038: Liquid Assets, Letter of Credit, and Surety Bond
Current as of: 2024 | Check for updates
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(1) A consumer finance licensee must at all times maintain liquid assets in the amount of $25,000, on deposit with the institution and held solely for the purpose of licensure. In lieu of liquid assets, one of the following alternative collateral devices may be maintained:
(a) A certificate of deposit pledged to the Office in the amount of $25,000 for this location. The certificate of deposit must be deposited in a financial institution as defined in Section 655.005(1)(i), F.S. An original of Form OFR-516-03, incorporated by reference in Fl. Admin. Code R. 69V-160.037 must be submitted to the Office.
(b) An irrevocable letter of credit in the amount of $25,000 for this location. The irrevocable letter of credit must be issued by a financial institution as defined in Section 655.005(1)(i), F.S.
(c) A surety bond in the amount of at least $25,000. A consumer finance company with at least one currently licensed location must provide to the Office a rider or surety bond in an amount of at least $5,000 for each additional license. However, the aggregate amount of the surety bond required for a consumer finance company with multiple licenses may not exceed $100,000. The surety bond or rider must be issued by a bonding company or insurance company authorized to do business in this state. An original of Form OFR-516-02, incorporated by reference in Fl. Admin. Code R. 69V-160.037, must be submitted to the Office.
Rulemaking Authority Florida Statutes § 516.22(1). Law Implemented 516.05, 516.07 FS. History-New 2-16-23.
Terms Used In Florida Regulations 69V-160.038
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
(b) An irrevocable letter of credit in the amount of $25,000 for this location. The irrevocable letter of credit must be issued by a financial institution as defined in Section 655.005(1)(i), F.S.
(c) A surety bond in the amount of at least $25,000. A consumer finance company with at least one currently licensed location must provide to the Office a rider or surety bond in an amount of at least $5,000 for each additional license. However, the aggregate amount of the surety bond required for a consumer finance company with multiple licenses may not exceed $100,000. The surety bond or rider must be issued by a bonding company or insurance company authorized to do business in this state. An original of Form OFR-516-02, incorporated by reference in Fl. Admin. Code R. 69V-160.037, must be submitted to the Office.
Rulemaking Authority Florida Statutes § 516.22(1). Law Implemented 516.05, 516.07 FS. History-New 2-16-23.