Illinois Compiled Statutes 410 ILCS 705/15-55 – Financial responsibility
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Evidence of financial responsibility is a requirement for the issuance, maintenance, or reactivation of a license under this Article. Evidence of financial responsibility shall be used to guarantee that the dispensing organization timely and successfully completes dispensary construction, operates in a manner that provides an uninterrupted supply of cannabis, faithfully pays registration renewal fees, keeps accurate books and records, makes regularly required reports, complies with State tax requirements, and conducts the dispensing organization in conformity with this Act and rules. Evidence of financial responsibility shall be provided by one of the following:
(1) Establishing and maintaining an escrow or surety
(1) Establishing and maintaining an escrow or surety
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account in a financial institution in the amount of $50,000, with escrow terms, approved by the Department, that it shall be payable to the Department in the event of circumstances outlined in this Act and rules.
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(A) A financial institution may not return money
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in an escrow or surety account to the dispensing organization that established the account or a representative of the organization unless the organization or representative presents a statement issued by the Department indicating that the account may be released.
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(B) The escrow or surety account shall not be
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canceled on less than 30 days’ notice in writing to the Department, unless otherwise approved by the Department. If an escrow or surety account is canceled and the registrant fails to secure a new account with the required amount on or before the effective date of cancellation, the registrant’s registration may be permanently revoked. The total and aggregate liability of the surety on the bond is limited to the amount specified in the escrow or surety account.
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(2) Providing a surety bond in the amount of $50,000,
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naming the dispensing organization as principal of the bond, with terms, approved by the Department, that the bond defaults to the Department in the event of circumstances outlined in this Act and rules. Bond terms shall include:
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(A) The business name and registration number on
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the bond must correspond exactly with the business name and registration number in the Department’s records.
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(B) The bond must be written on a form approved
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by the Department.
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(C) A copy of the bond must be received by the
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Department within 90 days after the effective date.
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(D) The bond shall not be canceled by a surety on
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less than 30 days’ notice in writing to the Department. If a bond is canceled and the registrant fails to file a new bond with the Department in the required amount on or before the effective date of cancellation, the registrant’s registration may be permanently revoked. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond.
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Terms Used In Illinois Compiled Statutes 410 ILCS 705/15-55
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14