AN ACT Relating to requiring a bond or other
security from persons seeking a license to sell checks, drafts, or money
orders; amending RCW 31.45.030; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1.
RCW 31.45.030 and 1991 c 355 s 3 are each amended to read as follows:
(1) Except as provided in RCW 31.45.020, no
check casher or seller may engage in business without first obtaining a license
from the supervisor in accordance with this chapter.
(2) Each application for a license shall be in
writing in a form prescribed by the supervisor and shall contain the following
information:
(a) The legal name, residence, and business
address of the applicant and, if the applicant is a partnership, association,
or corporation, of every member, officer, and director thereof;
(b) The location where the initial registered
office of the applicant will be located in this state;
(c) The complete address of any other locations
at which the applicant proposes to engage in business as a check casher or
seller;
(d) Such other data, financial statements, and
pertinent information as the supervisor may require with respect to the
applicant, its directors, trustees, officers, members, or agents.
(3) Any information in the application
regarding the personal residential address or telephone number of the applicant
is exempt from the public records disclosure requirements of chapter 42.17 RCW.
(4) The application shall be filed together
with an investigation and supervision fee established by rule by the
supervisor. Such fees collected shall be deposited to the credit of the
banking examination fund in accordance with RCW 43.19.095.
(5)(a) ((If the applicant intends to engage
in the business of selling checks, drafts, money orders, or other commercial
paper serving the same purpose, the supervisor shall require the applicant to
obtain and maintain an adequate fidelity bond or blanket fidelity bond covering
each officer, employee, or agent having access to funds collected by or for the
licensee. The bond shall be for the protection of the public against loss
suffered through embezzlement by any person having access to funds collected by
or for the licensee or having authority to draw against such funds, or from
mysterious disappearance, theft, holdup, or burglary)) Before granting a
license to sell checks, drafts, or money orders under this chapter, the
supervisor shall require that the licensee file with the supervisor a surety
bond running to the state of Washington, which bond shall be issued by a surety
insurer which meets the requirements of chapter 48.28 RCW, and be in a format
acceptable to the supervisor. The supervisor shall adopt rules to determine
the penal sum of the bond that shall be filed by each licensee. The bond shall
be conditioned upon the licensee paying all persons who purchase checks,
drafts, or money orders from the licensee the face value of any check, draft,
or money order which is dishonored by the drawee bank, savings bank, or savings
and loan association due to insufficient funds or by reason of the account
having been closed. The bond shall only be liable for the face value of the
dishonored check, draft, or money order, and shall not be liable for any
interest or consequential damages.
The bond shall be continuous and may be
canceled by the surety upon the surety giving written notice to the supervisor
and licensee of its intent to cancel the bond. The cancellation is effective
thirty days after the notice is received by the supervisor. Whether or not the
bond is renewed, continued, reinstated, reissued, or otherwise extended,
replaced, or modified, including increases or decreases in the penal sum, it
shall be considered one continuous obligation, and the surety upon the bond
shall not be liable in an aggregate or cumulative amount exceeding the penal
sum set forth on the face of the bond. In no event shall the penal sum, or any
portion thereof, at two or more points in time be added together in determining
the surety's liability. The bond shall not be liable for any liability of the
licensee for tortious acts, whether or not such liability is imposed by statute
or common law, or is imposed by contract. The bond shall not be a substitute
or supplement to any liability or other insurance required by law or by the
contract. If the surety desires to make payment without awaiting court action
against it, the penal sum of the bond shall be reduced to the extent of any
payment made by the surety in good faith under the bond.
Any person who is a purchaser of a check,
draft, or money order from the licensee having a claim against the licensee for
the dishonor of any check, draft, or money order by the drawee bank, savings
bank, or savings and loan association due to insufficient funds or by reason of
the account having been closed, may bring suit upon such bond or deposit in the
superior court of the county in which the check, draft, or money order was
purchased, or in the superior court of a county in which the licensee maintains
a place of business. Jurisdiction shall be exclusively in the superior court.
Any such action must be brought not later than one year after the dishonor of
the check, draft, or money order on which the claim is based. In the event
valid claims against a bond or deposit exceed the amount of the bond or
deposit, each claimant shall only be entitled to a pro rata amount, based on
the amount of the claim as it is valid against the bond, or deposit, without
regard to the date of filing of any claim or action.
(b) In lieu of ((providing a bond, the
licensee may deposit with the supervisor security in the form and amount
determined by the supervisor sufficient to protect the public against loss
suffered through embezzlement by any person having access to funds collected by
or for the licensee or having authority to draw against such funds, or from
mysterious disappearance, theft, holdup, or burglary)) the surety bond
required by this section, the applicant may file with the supervisor a deposit
consisting of cash or other security acceptable to the supervisor in an amount
equal to the penal sum of the required bond. The supervisor may adopt rules
necessary for the proper administration of the security. A deposit given
instead of the bond required by this section shall not be deemed an asset of
the licensee for the purpose of complying with the liquid asset provisions of
this chapter.
(c) Such security may be sold by the supervisor
at public auction if it becomes necessary to satisfy the requirements of this
chapter. Notice of the sale shall be served upon the licensee who placed the
security personally or by mail. If notice is served by mail, service shall be
addressed to the licensee at its address as it appears in the records of the
supervisor. Bearer bonds of the United States or the state of Washington
without a prevailing market price must be sold at public auction. Such bonds
having a prevailing market price may be sold at private sale not lower than the
prevailing market price. Upon any sale, any surplus above amounts due shall be
returned to the licensee, and the licensee shall deposit with the supervisor
additional security sufficient to meet the amount required by the supervisor.
A deposit given instead of the bond required by this section shall not be
deemed an asset of the licensee for the purpose of complying with the liquid
asset provisions of this chapter.
NEW SECTION. Sec. 2.
This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its existing public
institutions, and shall take effect immediately.
