§1386. Required documents; surety bond; tangible net worth

            A.(1) Before a license is issued pursuant to the provisions of this Chapter, an applicant shall submit a surety bond in the amount of one hundred thousand dollars to the department that secures the applicant's faithful performance of its duties pursuant to the provisions of this Chapter or in an amount the office specifies based on the nature and extent of risks in the applicant's virtual currency business plan.

            (2)(a) The licensee shall maintain or increase the minimum amount of the surety bond to reflect the dollar amount of all licensed virtual currency business activity in this state in the preceding calendar year in accordance with the provisions of this Paragraph.

Dollar Amount of Virtual Currency Business Activity           Minimum Surety Bond

                                                                                                      Amount Required

            $0 to $5,000,000                                                                    $ 100,000

            $5,000,000.01 to $10,000,000                                               $ 200,000

            $10,000,000.01 to $15,000,000                                             $ 300,000

            $15,000,000.01 to $20,000,000                                             $ 400,000

            $20,000,000.01 to $25,000,000                                             $ 500,000

            $25,000,000.01 to $30,000,000                                             $ 600,000

            $30,000,000.01 to $35,000,000                                             $ 700,000

            $35,000,000.01 to $40,000,000                                             $ 800,000

            $40,000,000.01 to $45,000,000                                             $ 900,000

            Over $45,000,000                                                                   $1,000,000

            (b) The office may increase the amount of the surety bond required to a maximum of seven million dollars.

            (c) The surety bond shall be issued by an entity authorized to sell insurance in this state in a form satisfactory to the commissioner and payable to the office for the benefit of any claimant against the licensee to secure the faithful performance of the obligations and duties of the licensee with respect to virtual currency business activities with, or on behalf of, residents of this state and the payment of required but unpaid fee amounts due to the office and assessed but unpaid civil money penalties.

            (d) The aggregate liability on a surety bond shall not exceed the principal sum of the bond. A claimant against a licensee may maintain an action on the bond.

            (e) A surety bond shall cover claims for as long as the office specifies but for at least five years after the licensee ceases to engage in virtual currency business activities in this state. However, the commissioner may permit the amount of the surety bond to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee's obligations outstanding in this state is reduced.

            B.(1)In addition to the surety bond required pursuant to Subsection A of this Section, a licensee, at the time of the application for a license pursuant to the provisions of this Chapter, shall submit to the office evidence of and maintain at all times a tangible net worth of the greater of one hundred thousand dollars or three percent of total assets for the first one hundred million dollars, two percent of additional assets for one hundred million to one billion dollars, and one-half percent of additional assets for over one billion dollars.

            (2) If a licensee materially violates any provision of this Chapter, any rule or regulation promulgated by the office, or any order issued by the commissioner pursuant to this Chapter, the commissioner may, at any time, require a licensee to increase its tangible net worth required to be maintained pursuant to this Section. The licensee shall submit to the commissioner evidence that it has the required additional tangible net worth not later than thirty days after the licensee is notified in writing of the required increase.

            (3) In determining the required additional tangible net worth, the commissioner may consider factors including but not limited to the following:

            (a) The actual and projected volume of the licensee's virtual currency business activity in this state.

            (b) Whether the licensee is currently licensed or regulated by the commissioner in accordance with the Sale of Checks and Money Transmission Act, R.S. 6:1031 et seq., and whether the licensee is in good standing in that capacity.

            (c) The amount of leverage employed by the licensee.

            (d) The liquidity position of the licensee.

            (e) The products or services offered by the licensee.

            Acts 2020, No. 341, §1; Acts 2023, No. 331, §1, eff. June 13, 2023; Acts 2024, No. 159, §1; Acts 2024, No. 700, §2.

NOTE: The provisions of Acts 2023, No. 331, will terminate on July 1, 2027. See Acts 2024, No. 700.

NOTE: The provisions of Acts 2023, No. 331, have no termination date. See Acts 2024, No. 159.