                                 CODE OF VIRGINIA

(REPEALED EFFECTIVE JULY 1, 2026) BOND REQUIRED (§ 6.2-1904)

A. The application for a license shall be accompanied by a surety bond
satisfactory to the Commissioner in the principal amount as determined by the
Commissioner. The amount of the bond shall be not less than $25,000 nor more
than $1 million. The bond shall be conditioned upon the licensee (i) performing
its obligations to purchasers, payees, and holders of money orders and money
transmission services sold by the licensee and its authorized delegates and (ii)
conducting the licensed business in conformity with this chapter.

B. As an alternative security device and in lieu of the surety bond required by
subsection A, a license applicant may deposit with a financial institution
designated by such applicant and approved by the Commissioner for that purpose,
cash, stocks and bonds, notes, debentures or other obligations of the United
States or any agency or instrumentality thereof, or guaranteed by the United
States, or of the Commonwealth, or of a locality or other political subdivision
of the Commonwealth, in an aggregate amount, based upon the principal amount or
market value, whichever is lower, of not less than the amounts required by the
Commissioner pursuant to subsection A. Such cash or securities shall be
deposited and held to secure obligations established in subsection A, but the
licensee shall be entitled to (i) receive all interest and dividends thereon and
(ii) substitute, with the Commissioner&#8217;s prior approval, other securities
for those deposited. The Commissioner may also direct the licensee, for good
cause shown, to substitute other securities for those deposited.

C. The security device required by this section shall remain in place for five
years after a licensee ceases money order sales or money transmission
activities. The Commissioner may permit the security device to be reduced or
eliminated prior to that time to the extent the amount of such licensee&#8217;s
outstanding money orders and money transmission transactions are reduced. The
Commissioner may also permit any licensee to substitute a letter of credit, or
such other form of security device as may be acceptable to the Commissioner, for
the security device in place at the time the licensee ceases money order sales
or money transmission activities.

HISTORY: 1974, c. 578, § 6.1-372; 1987, c. 283; 1990, c. 259; 1992, c. 283;
1994, c. 889; 1996, c. 274; 2001, c. 372; 2009, c. 346; 2010, c. 794; 2014, c.
454; 2025, c. 214.