CHAPTER 423

FORMERLY HOUSE BILL

NO. 794

AN ACT TO AMEND TITLE 5, DELAWARE CODE, BY ADOPTING A NEW CHAPTER 32 THERETO TO PROVDIE FOR THE LICENSING AND REGULATION OF TRANSPORTATION OF MONEY AND VALUABLES AND PROVIDING FOR THE SUBMISSION OF PROOF OF FINANCIAL RESPONSIBILITY.

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

Section 1. Title 5 of the Delaware Code of 1953, is amended by adopting a new Chapter 32 to read as follows:

CHAPTER 32. TRANSPORTATION OF MONEY

AND VALUABLES.

§ 3201. Citation

This act may be cited as the "Transportation of Money and Valuables Act."

§ 3202. Definitions

For purposes of this act:

(a) "Person" means any individual, partnership, association, joint stock association, or corporation, but does not include the United States Government or the Government of this State.

(b) "Licensee" means a person duly licensed by the State Bank Commissioner pursuant to this act.

(c) "Money" includes cash, legal tender or currency of the United States or of any other State or Nation.

(d) "Transporter" means any person engaged in the business of transporting for hire, money or other valuables.

(e) "Valuables" includes bullion, securities, stocks, bonds, any negotiable or non-negotiable documents, jewels or other property or documents of substantial monetary value.

§ 3203. License required

No person requiring a license by this Chapter shall engage in this state in the business of a Transporter until his application for a license to so engage in business is finally approved by the State Bank Commissioner.

§ 3204. Exempt from licensing

(a) No license as a Transporter shall be required of any of the following:

(i) Banks, trust companies, building and loan associations, organized under the laws of this state or authorized to do business in this State while transporting their own property.

(ii) Incorporated telegraph companies insofar as they receive money at any of their respective offices or agencies for immediate transmission by telegraph.

(b) Nothing contained in this section or in any other section of this act shall be construed to enlarge or limit the rights which any of the above-named organizations have under any existing law.

§ 3205. Qualifications

To qualify for a license hereunder an applicant shall meet the following requirements:

(a) The applicant shall have a net worth of at least $50,000.00, computed according to generally accepted accounting principles.

(b) The financial responsibility, financial condition, and business experience, and character and general fitness of the applicant shall be such as reasonably to warrant the belief that applicant's business will be conducted honestly, carefully and efficiently. To the extent deemed advisable by the Commissioner, the Commissioner may investigate and consider the qualifications

of the applicant including officers and directors of an applicant in determining whether this qualification has been met.

§ 3206. Applications

Each application for a license shall be made in writing and under oath to the Commissioner in such form and containing such information as he may prescribe including the name and business and residence address:

(a) Of the proprietor, if the applicant is an individual;

(b) Of every member, if the applicant is a partnership or unincorporated association.

(c) Of the corporation and each officer and director thereof, if the applicant is a corporation, stating the date and the state of incorporation.

§ 3207. Accompany fee and statements

Each application for a license shall be accompanied by:

(a) An investigation fee of $150, which shall not be subject to refund.

(b) The annual license fee as specified in § 3210.

(c) Financial statements reasonably satisfactory to the Commissioner.

§ 3208. Action by the Commissioner; conditional approval

Upon the filing of the application and the payment of the investigation fee and the annual license fee, Commissioner shall, to the extent he deems advisable, investigate the financial responsibility, financial condition, financial and business experience, character and general fitness of the applicant, and if he finds these qualities are such as to warrant the belief that the applicant's business will be conducted honestly, fairly, equitably, carefully and efficiently within the purposes of the intent of this Act, and in the manner commanding the confidence and trust of the community, the Commissioner shall advise the applicant in writing

of his conditional approval of the application, and thereafter, upon compliance by the applicant with the provisions of Section 3209 of this Chapter, shall issue to the applicant a license to engage in the business of a Transporter. If the Commissioner determines on the basis of his investigation that the applicant does not comply with the purposes of this Chapter as set forth in the preceding sentence of this section, he shall notify the applicant of the denial of the conditional approval of the license stating the reasons therefor in writing.

§ 3209. License; bond; insurance

(a) Within 30 days after the applicant receives written notice of the conditional approval by the Commissioner of an application for original license as provided in Section 3208 hereof, or within such longer period as the Commissioner may authorize, the applicant shall file with the Commissioner a corporate surety bond in the principal sum of $10,000. Such bond shall be in a form satisfactory to the Commissioner and shall be issued by a surety company authorized by the laws of state to conduct business in this state. The bond shall run to the state and shall be conditioned that the licensee will pay any and all monies that may become due and owing any claimant or creditor of or against the licensee arising out of the licensee's business within the state as Transporter. The aggregate liability of the surety bond shall, in no event, exceed the amount of the bond. The surety on the bond shall have the right to cancel such bond upon giving 30 days' written notice to the Commissioner and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of said cancellation.

In any event, the bonds shall continue to be in effect as a condition for the continuance or renewal of the license issued hereunder.

(b) In lieu of such corporate surety bond the applicant may keep on deposit with any federally insured banking institution or savings and loan association in this state as such applicant shall designate and the Commissioner shall approve, securities, interest bearing stocks and bonds, notes, debentures, or other obligations of the United States or agency or instrumentality thereof, or guaranteed by the United States or of this state or any subdivision thereof, or dollar deposits, to an aggregate amount, based upon

principal amount or market value, whichever is lower, of not less than the amount of the required corporate surety bond. The securities shall be deposited as aforesaid and held to secure the same obligations as would the corporate surety bond, but the depositor shall be entitled to receive all interest and dividends thereon and shall have the right, with the approval of the Commissioner, to substitute other securities for those deposited.

(c) In addition to the bond required in subparagraph (a) hereof, within 30 days after the applicant receives written notice of the conditional approval by the Commissioner of an application fOr original license as provided in Section 3208 hereof or within such longer period as the Commissioner may authorize, the applicant shall file certificates or other acceptable evidence with the State Bank Commissioner, establishing that it has in full force and effect a contract of insurance with a good and reputable insurance company, licensed to do business in this state, an underlying all risk (except for customary war risk exclusions) policy in an amount not less than $5,000,000 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 monies, 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. If the insurance contracts required by this subsection shall lapse or be cancelled, then the State Bank Commissioner, in his discretion, may, upon 10 days' notice to the Licensee, cancel the license provided for in this chapter, until such time as the required insurance contracts have gone into effect. Insurance companies issuing contracts pursuant to this section shall, within three days after giving notice to the Licensee that the effect of the contracts have been altered or are no longer in effect, give similar notice to the State Bank Commissioner of such notice to the Licensee.

(d) A license issued under this chapter shall remain in full force and effect until surrendered, suspended or revoked pursuant to this Chapter.

(e) If the Commissioner shall at any time reasonably determine that the bond or securities of the aforesaid are insecure, deficient in amount, or exhausted in whole or in part, or if the

surety on the bond shall have notified the Commissioner of its intention to cancel the bond, he shall by written order require the filing of a new or supplemental bond or the depositing of a new or additional securities in order to secure compliance with this act, such order to be compiled with within 20 days following service thereof upon the Licensee.

§ 3210. Annual license fee

Each licensee shall pay to the Commissioner annually, or on before January 1 of each year, a license fee of $200 for the ensuing calendar year.

§ 3211. Agents

A Licensee may conduct his business at one or more locations within the state and through or by means of such agents as the Licensee may from time to time designate or appoint. No license under this act shall be required of any agent of a Licensee. In order for an agent to be authorized to act for the Licensee in this state, the Licensee shall have on file with the Commissioner the name and address of the agent and the Licensee shall notify the Commissioner within 30 days of the change of name and/or address of an agent or of the termination of any such agent. The requirements of this section shall not apply to any agent of a Licensee who is exempt from the provisions of this chapter pursuant to paragraph (a) of Section 3204 hereof.

§ 3212. Liability of licensee

(a) Each Licensee shall be absolutely liable for any loss, damage, destruction or impairment of the money or valuables placed in his possession in addition to whatever additional liability shall be imposed upon him by reason of contractual obligations or the laws of this state or any other applicable law.

(b) In any action to recover money or valuables delivered to a Transporter, the burden of proving the delivery to and the receipt of such money or valuables by the person to whom it was directed to be paid or delivered shall be upon the Transporter.

§ 3213. Revocation of license; examination

The Commissioner may revoke any license on any ground on which he may refuse to grant a license or for violation of any provision of this Chapter. In furtherance of the foregoing, the Commissioner may examine the business, books and records of the Licensee at any time and the reasonable cost of such examination is to be paid by the Licensee.

§ 3124. Hearings

(a) No license shall be denied or revoked except after a hearing thereon. An applicant denied a conditional approval for a license as set forth in Section 3205 may demand in writing a hearing on said refusal within 20 days and after receipt of the notice of the denial of such conditional approval.

(b) The Commissioner shall give the applicant or Licensee at least 20 days' written notice of the time and place of such hearing by registered or certified mail addressed to the principal place of business of such applicant or Licensee.

(c) Any order by the Commissioner denying or revoking such license shall state the grounds upon which it is based and shall not be effective until 20 days after written notice thereof has been sent by registered or certified mail to the applicant or Licensee at such principal place of business or unless the Commissioner deems that it is in the public interest that the revocation take place sooner than the 20-day period in which event he shall so notify the Licensee and shall grant the Licensee an immediate hearing if the same has been demanded in writing.

(d) Any hearing required by this section shall be conducted on the record, witnesses shall be sworn and evidence presented to the Commissioner which shall be appropriately identified and preserved. The Commissioner is hereby granted subpoena powers to compel the attendance of witnesses.

§ 3215. Appeal from Commissioner

(a) Any applicant or Licensee aggrieved by any order or decision of the Commissioner shall have the right to appeal to the Superior Court of the State of Delaware in and for such county as the appellant may determine.

(b) The appeal shall not be a trial de novo but shall be based upon the record before the Commissioner.

(c) The scope of review before the Superior Court shall be that the Commissioner's finding shall be upheld if they are supported by sufficient evidence, free of error of law and not arbitrary or capricious.

§ 3216. Penalties

Any person who violates any provision of this chapter shall be guilty of a misdemeanor, and shall be fined not less than $100 nor more than $1,000 or imprisoned for not more than five years, or both for each such offense.

§ 3217. Rules and regulations

The Commissioner may adopt such rules and regulations as are necessary for the proper administration of this chapter.

§ 3218. Severability

Should any provision, sentence, clause, section or part of this chapter for any reason be held unconstitutional, illegal or invalid, such unconstitutionality, illegality, or invalidity shall not affect or impair any of the remaining provisions, sentences, clauses, sections or parts of this chapter.

§ 3219. Limitation on construction of chapter

This chapter shall not be construed as permitting any corporation, domestic or foreign, to transact in this State the business of a state bank and trust company, savings bank, industrial bank, private bank or building or savings and loan association.

Section 2. This act shall become effective on January 1, 1973.

Approved June 11, 1972.