Mich. Admin. Code R. 436.2007 - Unencumbered securities; maintenance of value
Rule 7.
(1) Each
retail licensee who provides to the commission cash or unencumbered securities
as proof of financial responsibility shall maintain the value of the cash or
unencumbered securities at not less than $50,000.00 during the entire period in
which the license is in effect. Securities shall not be encumbered during any
period in which they serve as proof of financial responsibility to the
commission.
(2) The value of
unencumbered securities shall be determined by the current market price as
reported at the time of filing and thereafter in a nationally recognized
financial publication or other reliable source as determined by the
commission.
(3) If the market value
of unencumbered securities provided to the commission as proof of financial
responsibility falls below $50,000.00, the licensee shall immediately provide
additional unencumbered securities or cash to the commission so as to restore,
to not less than $50,000.00, the value of unencumbered securities and cash held
by the commission. Failure to provide additional unencumbered securities or
cash immediately shall result in the license being suspended until such time as
additional unencumbered securities or cash has been provided to the
commission.
Notes
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