Missouri Code of State Regulations
Title 15 - ELECTED OFFICIALS
Division 30 - Secretary of State
Chapter 130 - Professional Employer Organization Act
Section 15 CSR 30-130.060 - Proof of Positive Working Capital, Bonds, and Letters
Universal Citation: 15 MO Code of State Regs 30-130.060
Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: This rule describes positive working capital, as well as, the posting of bonds and letters of credit.
(1) An applicant or registered professional employer organization (PEO) must demonstrate positive working capital. This must be demonstrated in the financial audit that-
(A) Was prepared in accordance with generally
accepted accounting principles;
(B)
Was audited by an independent certified public accountant without qualification
as to the ongoing concern status of the applicant or registered PEO;
(C) Reflects positive working capital;
and
(D) Is based on adequate
reserves for taxes, insurance, and incurred claims that are not paid.
(2) An applicant who does not have a positive working capital may provide a bond-
(A) With a minimum market value equaling the
deficiency plus one hundred thousand dollars ($100,000);
(B) Held by a lender authorized to do
business in the state of Missouri and found on
https://treasurer.mo.gov/LinkedDepositProgramParticipatingInstitutions/default.aspx;
(C) Is payable to the Missouri secretary of
state; and
(D) States that the
surety will provide the secretary written notice sixty (60) days prior to
cancelling the bond.
(3) In the alternative, an applicant who does not have a positive working capital may provide a letter of credit with a minimum market value equaling the deficiency plus one hundred thousand dollars ($100,000) that-
(A) Is irrevocable;
(B) Is issued by a financial institution
authorized to do business in the state of Missouri and which is financially
responsible for the amount of the letter;
(C) Does not require examination of the
performance of the underlying transaction between the secretary and the
applicant;
(D) Is payable to the
secretary on sight or within a reasonable period of time after presentation of
all required documents; and
(E)
Does not include any condition that makes payment to the secretary contingent
upon the consent of, or other actions by, the applicant or other
party.
Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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