(a) Every person licensed to transmit money pursuant to Banking Law, section 641, shall file with the superintendent one or more corporate surety bonds, in form satisfactory to the superintendent in such principal amount as the superintendent shall have determined. Such corporate surety bond shall be issued by a bonding company or insurance company authorized to do business in this State.

(b) One such bond shall be in favor of the superintendent for the protection of the purchasers and holders of New York instruments sold by the licensee. The principal amount of such bond shall be not less than $500,000 and it shall contain substantially the following language:

“The proceeds of this bond shall constitute a trust fund for the exclusive benefit of the purchasers and holders of the licensee's New York instruments. In the event of the insolvency or bankruptcy of the licensee, the proceeds of the bond shall be paid to the Superintendent forthwith for disposition in accordance with the applicable provisions of the Banking Law; provided, however, if any New York instruments have been assigned to the fund, the proceeds of the bond shall constitute a trust fund for the benefit of, and shall be payable to, the fund to the extent of such assignment. As used herein, the terms “New York instruments”, “fund”, “purchasers,” and “holders” shall have the meanings ascribed to them in section 653 of the Banking Law.“

(c) If the licensee engages in the sale of New York traveler's checks, such licensee shall file with the superintendent a separate bond. Said bond shall be in favor of the superintendent for the protection of the purchasers and holders of New York traveler's checks sold by the licensee. The principal amount of such bond shall not be less than $750,000 and it shall contain substantially the following language:

“The proceeds of this bond shall constitute a trust fund for the exclusive benefit of the purchasers and holders of the licensee's New York traveler's checks. In the event of the insolvency or bankruptcy of the licensee, the proceeds of the bond shall be paid to the Superintendent forthwith for disposition in accordance with applicable provisions of the Banking Law. As used herein, the terms “New York Traveler's checks”, “purchasers” and “holders” shall have the meanings ascribed to them in section 653 of the Banking Law.”