Illinois Administrative Code
Title 14 - COMMERCE
Part 135 - REGULATIONS UNDER THE BUSINESS OPPORTUNITY SALES LAW OF 1995
Subpart C - REGISTRATION OF BUSINESS OPPORTUNITIES
Section 135.500 - Minimum Net Worth or Surety Bond Requirement
Universal Citation: 14 IL Admin Code ยง 135.500
Current through Register Vol. 48, No. 38, September 20, 2024
a) In lieu of the minimum net worth requirement set forth in Section 5-50 of the Act, the seller may post a surety bond issued by a surety company authorized to do business in this State. The surety bond shall:
1) be in an amount
equivalent to the aggregate of the amount of outstanding guarantees on sales
made in this State within the meaning of Section 5-80 of the Act;
2) shall remain in effect for the duration of
the guarantee(s) or representation(s) giving rise to the surety bond
requirement; and
3) shall be in
favor of this State for the benefit of purchasers.
b) Any sale made in this State within the meaning of Section 5-80 of the Act which makes use of representations of guarantee pursuant to Section 5-5.10(a)(4) of the Act when the seller knows or reasonably should know that the guarantee is not covered or is insufficiently covered in the aggregate with other guarantees of the seller, is a per se violation of Section 5-95(3) of the Act.
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