Section 26-C2204. SUBSTITUTION OF OTHER SECURITY DEVICE

 

2204.1An applicant that seeks to substitute a security device other than a surety bond or irrevocable letter of credit pursuant to section 8(a) of the Act shall file a request for approval for the substituted security device with the Department.

 

2204.2The request for a substitute security device pursuant to § 2204.1 shall be made in writing and shall include an explanation of the reason(s) the applicant is seeking the substitution and why such other security device should be acceptable under the Act.

 

2204.3Upon receipt of a request for a substitute security device pursuant to § 2204.2, the Department shall review the request to determine if the substituted security device is in a form satisfactory to the Department and if the substituted security device runs to the District of Columbia for the benefit of all claimants against the applicant to secure the faithful performance of the applicant with respect to the receipt, handling, transmission, or payment of money in connection with the sale and issuance of payment instruments or transmission of money. In addition, the Department shall determine if just and reasonable cause exists for a substitution and if a substitution pursuant to § 2204.2 would be consistent with the purposes of the Act.

 

2204.4Within sixty (60) days of receipt of a request pursuant to § 2204.2 and upon completion of the review pursuant to § 2204.3, the Department shall determine whether to approve the substitute security device in lieu of a surety bond or irrevocable letter of credit.

 

source

Final Rulemaking published at 50 DCR 10329, 10331-10332 (December 5, 2003).