CHAPTER 421

AN ACT TO AMEND CHAPTER 23, TITLE 5, DELAWARE CODE, BY PROVIDING FURTHER REGULATION OF THE BUSINESS OF FORWARDING OR TRANSMITTING MONEY OR OTHER VALUABLE INSTRUMENTS BY PROVIDING FOR THE SUBMISSION OF PROOF OF FINANCIAL RESPONSIBILITY AND PROOF OF THE POSSESSION OF INSURANCE.

WHEREAS, it has come to the attention of the General Assembly that the general public welfare requires regulation of the business of transporting money beyond that presently provided by the statutes of this State; and

WHEREAS, the General Assembly finds that the general public welfare requires that such additional regulation be imposed at this time;

NOW, THEREFORE,

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Title 5, Section 2304, is amended by striking the present provision and by inserting in lieu thereof the following:

(a) Each money forwarder shall, before engaging in such as business, file with the said State Bank Commissioner a good and sufficient bond in the penal sum of not less than $10,000, with a surety company authorized to transact business in the State of Delaware as surety thereon, conditioned that (1) said licensee shall pay to the State of Delaware all fees or other charges due the said State, and (2) that said licensee shall well and truly keep, do and perform each and every, all and singular the matters and things contained in all contracts, either oral or written, that said licensee may at any time enter into with respect to business described in Section 2301 (a), and (3) that the said licensee shall pay over, make good and reimburse all loss or damage which any person, firm or corporation may sustain by reason of failure or default on the part of said licensee. Said bond shall run in favor of the State of Delaware and/or any other persons doing business with, or having a claim against said licensee, and any such person shall be permitted to maintain an action upon said bond with the same force and effect as though the State of Delaware instituted such action. The said bond shall be approved by the State Bank Commissioner prior to the issuance of the license required by § 2301 (a). A certificate showing such bond to be still in effect shall be furnished the said State Bank Commissioner annually prior to the renewal of the license.

(b) In addition to the bond above provided for, each person, firm or corporation desiring such license shall furnish certificates or other acceptable evidence to the said State Bank Commissioner establishing that it has in force and effect a contract of insurance with good and reputable insurance companies, licensed to do business in the State of Delaware, an underlying all risk (except for customary war risk exclusions) policy in an amount not less than $3,000,000 insuring licensee and/or any persons doing business with, or having a claim against said licensee arising from any loss through any risk assumed by the licensee in any contract for the transportation, handling or storage of moneys, including lawful currency and coin, negotiable and non-negotiable securities, stocks, bonds, coupons and things of unusual value. Such certificates shall be furnished annually prior to renewal of the license.

(c) In the event that the security provided by such bond shall be impaired, encumbered or reduced during the term of the license or, in the event that the insurance contracts required by Subsection (b) shall lapse or be cancelled, then the State Bank Commissioner, in his discretion, may, upon ten days' notice to licensee, cancel the license herein provided for until such time as a new and sufficient bond has been furnished or the required insurance contracts have gone into effect. Surety and insurance companies issuing bonds or insurance contracts pursuant to this Section shall within three days of notice to the licensee that the effect of the said bond has been altered or that the said insurance contracts are no longer in effect, shall give similar notice to the State Bank Commissioner of such notice to the licensee shall be of no force and effect.

(d) The State Bank Commissioner is authorized to make such investigations and promulgate such regulations as are necessary to implement this Section.

(e) The failure of any licensee to give prompt or correct information to the State Bank Commissioner concerning compliance with this Section shall be, following notice and hearing, ground for cancellation of this license. The intentional submission of false information to the State Bank Commissioner concerning compliance with this Section shall be a misdemeanor and upon conviction shall be punishable by a fine of not less than $500 nor more than $10,000 or by imprisonment for no more than 5 years or both.

(f) The cancellation or non-cancellation of the license required hereunder shall not prejudice, hamper, restrict, encumber or destroy the right of any person to maintain a claim against both said licensee and surety on said bond for any loss or claim arising by reason of default of licensee under its contract for carriage or handling of property, and regardless of licensee's compliance with the terms and provisions of this Section, his liability to such persons shall continue and not be affected by said licensee's failure to obtain a license or by the cancellation of such license.

Approved June 27, 1966.