(815 ILCS 610/12) (from Ch. 29, par. 50-12)
Sec. 12.
Bonding requirements.
Every dance studio which requires or
receives advance payment from any customer in excess of $50 or more frequently
than once each month shall maintain a bond for the benefit of any person who
has entered into a contract for dance studio services with the dance studio,
whether or not such contract is void under this Act, and is damaged by the
failure of the studio to provide the services
specified in the contract or by the failure of the studio to comply with
this Act. The principal sum of the bond shall be 10% of the studio's gross
income from the dance studio business in this State during the studio's
last preceding fiscal year, except that the principal sum of the bond shall
not be less than $10,000.
The bond shall be issued by a bonding firm licensed to do business as such
in this State, and shall be filed with the Secretary of State, together
with a declaration under penalty of perjury signed by the owner of the studio
stating the studio's gross income from the dance studio business in this
State during the last preceding fiscal year.
(b) In lieu of furnishing such bond a dance studio may deposit with the
Secretary of State a cash deposit in a like amount. This cash deposit may
be satisfied by any of the following:
(1) certificates of deposit payable to the Secretary of State issued by
banks doing business in this State and insured by the Federal Deposit Insurance
Corporation;
(2) investment certificates or share accounts assigned to the Secretary
of State and issued by a savings and loan association doing business in
this State and insured by the Federal Savings and Loan Insurance Corporation;
(3) bearer bonds issued by the United States government or by this State; or
(4) cash deposited with the Secretary of State.
(c) No dance studio shall engage in business in this State while it is
not in compliance with the provisions of this Section.
(Source: P.A. 82-346.)
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