(240 ILCS 10/6) (from Ch. 111 2/3, par. 124)
Sec. 6. Bond or legal liability insurance policy. Prior to the issuance of a license, the personal property warehouseman
shall file with the Commission
a surety bond, or legal liability insurance policy on a
form prescribed by the Commission, signed by the warehouseman as principal
and by a responsible company authorized to execute surety bonds within the
State of Illinois. The bond
shall contain provisions for faithful performance by the applicant of
his duties as a warehouseman in accordance with this Act, the rules and
regulations thereof, and the "Uniform Commercial Code", as now or
hereafter amended. Such bond shall also contain provisions for the
payment of any loss or damage sustained by any depositor of property
stored.
The bond or insurance policy shall be in the amount set by the Commission by rule.
Such bond or insurance policy is to be made payable to the People of the State of
Illinois, for the use and benefit of all persons aggrieved by the
failure of the operator to comply with this Act, and shall not be
cancelled during the period for which any license is issued, except upon
at least 90 days' notice, in writing, to the Commission.
If bond other than a surety bond is filed, it must be secured by real
estate having a value of not less than double the amount of such bond
over and above all exemptions and liens thereon. Such bond shall be
recorded and be a lien on the real estate for the amount thereof, and
the recording fees paid by the applicant or operator.
Any operator may, in lieu of a bond, file with the Commission a
certified copy of a legal liability insurance policy or a certificate
of deposit. The principal
amount of the legal liability insurance policy and the certificate of deposit
shall be the same as that required for a surety bond under this Act. Any
certificate of deposit filed with the Commission, in lieu of a surety bond,
shall be payable to the Commission as Trustee and the interest
thereon shall be made payable to the purchaser thereof.
The legal liability insurance policy shall contain a loss payable endorsement
making such policy payable to the People of the State of Illinois, with
the Commission as Trustee. The legal liability insurance
policy shall not
be cancelled during the period for which any license is issued, except
upon at least 90 days' notice in writing to the Commission. When in the
discretion of the Commission, the legal liability insurance policy or the assets
of a warehouseman appear to be insufficient, when compared to his
storage obligations or to meet the bond requirements of the United
States, or any agency or corporation controlled by the United States
when they have a contract for storage with the warehouseman, or for any
other reason it may appear necessary to the Commission, the Commission
may require such additional bond or legal liability insurance policy as may be
reasonable in the circumstances.
The Commission as trustee of the bond or policy shall have
the authorities granted him in Section 205-410 of the
Department
of Agriculture Law (20 ILCS 205/205-410) and the rules and regulations adopted pursuant thereto.
Failure to keep such bond or insurance policy in effect is cause for
the revocation of any license.
(Source: P.A. 96-515, eff. 1-1-10.)
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