Minimum Net Worth or Surety Bond Requirement

Section 135 Section 135.500  Minimum Net Worth or Surety Bond Requirement 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.