Section 26-C2205. DEPOSITING OF CASH, INTEREST-BEARING STOCKS AND BONDS, NOTES, DEBENTURES OR OTHER OBLIGATIONS

 

2205.1An applicant that seeks to deposit cash, interest-bearing stocks and bonds, notes, debentures or other obligations, in lieu of a security device, pursuant to section 8(b) of the Act shall file a request for approval with the Department.

 

2205.2A request filed pursuant to § 2205.1 shall be made in writing and shall include an explanation of the reason(s) the applicant is seeking substituted deposit(s) and why a substituted deposit should be acceptable to the Department. The request also shall include a calculation of the applicant's permissible investments and their aggregate market value, calculated in accordance with generally accepted accounting principles and the amount of all outstanding payment instruments issued or sold by the applicant in the United States.

 

2205.3Upon receipt of a request filed pursuant to § 2205.2, the Department shall review the request to determine if the cash, interest-bearing stocks and bonds, notes debentures or other obligations the applicant proposes to use as a security device in lieu of a bond are issued or guaranteed by the United States or the District of Columbia or an agency or instrumentality of the United States or the District of Columbia.  In addition, the Department shall determine if just and reasonable cause exists for a substitute deposit and if a substitute deposit pursuant to § 2205.2 would be consistent with the purposes of the Act.

 

2205.4Within sixty (60) days of receipt of a request pursuant to § 2205.2 and upon completion of the review pursuant to § 2205.3, the Department shall determine whether to approve the substitute deposit.

 

source

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