61G7-5.005. Deficiency in Tangible Accounting and Accounting Net Worth; Guaranty Form Acceptable to Board; Sufficient Evidence of Guarantor's Adequate Resources

(1) When an applicant chooses to have a guaranty to offset any deficiency in tangible accounting net worth regarding an initial application, accounting net worth or working capital regarding a renewal application, such guaranty shall be made on Board Form DBPR EL-4505, Board Approved Guaranty Form, effective March 2013, incorporated herein by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-09131. Such guaranty shall be irrevocable until such time that the deficiency causing the guaranty has been corrected, as demonstrated by the applicant’s annual financial statement meeting the requirements of either Rule 61G7-5.0031 or 61G7-5.0032, F.A.C., or until a new guaranty has been submitted and found acceptable by the Board to replace the previously submitted guaranty.

(2) Initial applicants and licensed employee leasing companies who submit a guaranty in accordance with subsection (1), shall also show that the guarantor has adequate resources to satisfy the obligation of the guaranty. Upon the Board’s finding that the guarantor’s resources and the guaranty are acceptable, the applicant or licensed employee leasing company shall provide the original guaranty to the Board to keep with the leasing company’s file.

(3) When an initial applicant or a licensed employee leasing company chooses to submit an irrevocable letter of credit to offset any deficiency in tangible accounting net worth regarding an initial applicant, accounting net worth or net working capital regarding a licensed employee leasing company, such irrevocable letter of credit is acceptable so long as:

(a) The responsibility for repayment of any sums disbursed under the letter of credit is not an obligation of the employee leasing company or any entity affiliated with the employee leasing company;

(b) The letter of credit contains an “evergreen” clause, which automatically renews the letter of credit unless the issuer of the letter of credit notifies the employee leasing company and the Department within sixty (60) days of the decision not to renew; and,

(c) The letter of credit is issued by a financial institution authorized to do so under applicable state or federal banking laws.

Rulemaking Authority 468.522, 468.525(3)(d) FS. Law Implemented 468.525(3) FS. History–New 9-6-93, Amended 5-29-94, 5-26-96, 9-5-04, 6-8-08, 8-16-11, 6-19-13, 2-28-18.