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February 29, 2024 Clouds | 32°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 3: Bonds; requirements; issuance and revocation of licenses; trust fund for depositors

Section 3. Except as otherwise expressly provided herein, the provisions of this section shall apply to the bonds required by section two. Each such bond shall be executed by the person of whom it is required, as principal, and a surety company, approved by the commissioner, as surety. In lieu of the aforesaid surety, the person may deposit and the state treasurer shall accept as security for the fulfillment of the provisions of the bond, money, bonds of the United States, of the commonwealth or of any municipality thereof or, if approved by the commissioner, other bonds, certificates of deposit issued by a savings bank, cooperative bank, credit union, trust company, federal savings bank, federal savings and loan association, federal credit union or national bank, or savings accounts in such institutions. The money or securities so deposited shall be held upon the conditions specified in the bond. If securities be deposited in lieu of an approved surety and be accepted, the state treasurer shall require the depositor to maintain such deposit at a value equal to the amount fixed as the penalty of the bond and he may, in his discretion, permit the substitution of securities for money, or of money for securities, in whole or in part, or of money or securities for an approved surety, or of a bond for money or securities deposited or the withdrawal of securities deposited and the substitution of others of equal value in their place and, if the total value of the securities becomes substantially impaired, he shall require the deposit of money or additional securities sufficient to cover the impairment in value. No bond required by section two shall be accepted until it has been first examined and approved by the commissioner and the state treasurer and, upon such approval by the state treasurer, it shall be filed in his office. Upon notice of such approval by the state treasurer, the commissioner shall issue a license authorizing said person to carry on the business of receiving deposits of money for the purpose of transmitting the same or equivalents thereof to foreign countries. Such license shall be for a period of one year from July first. No person shall engage or become financially interested or continue to engage or be financially interested in the aforesaid business without such authority. The fee for such license shall be determined annually by the commissioner of administration under the provisions of section three B of chapter seven. The license shall not be transferred or assigned. It shall not authorize the transaction of business at any place other than that described in the license, except with the written approval of the commissioner. Immediately upon the receipt of the license issued by the commissioner, the licensee named therein shall cause the license to be posted and at all times conspicuously displayed in the place of business for which it is issued, so that all persons visiting such place may readily see the same. It shall be unlawful for any licensee to post the license or permit the license to be posted upon premises other than those described therein or those to which it has been transferred with the written approval of the commissioner, or knowingly to deface or destroy any such license. The money and securities deposited with the state treasurer as herein provided and the money which in case of breach of the bond shall be paid by any licensee or surety thereon, shall constitute a trust fund for the benefit of such persons as shall deposit money with the licensee for transmission as aforesaid and such beneficiaries shall be entitled to an absolute preference as to such money or securities over all general creditors of the licensee. The license shall be revocable at all times by the commissioner for cause shown and in the event of such revocation or a surrender of the license, no refund shall be made in respect to any license fee paid. Every license shall be surrendered to the commissioner within twenty-four hours after written notice to the holder that the license has been revoked. In case of revocation or surrender of, or failure to renew, a license, the money and securities and the bond, if there be one, shall continue to be held by the state treasurer for a period of one year from the date of such revocation, surrender or failure to renew and until the expiration of sixty days after final judgment in any action or suit commenced prior to the end of said period, unless otherwise directed by the order or judgment of a court of competent jurisdiction.