The Florida Senate

517.1203  Allocation and disbursement of assessment fees.--

(1)  Notwithstanding s. 517.131(1), an additional amount equal to 25 percent of all revenues received as assessment fees pursuant to s. 517.12(10) and (11) from persons applying for or renewing registrations as associated persons shall be allocated to the Securities Guaranty Fund and disbursed as provided in this section. This allocation shall continue until the office determines, by final order, that sufficient funds have been allocated to the Securities Guaranty Fund pursuant to this section to satisfy all valid claims filed in accordance with subsection (2) and until all amounts payable under any service contract entered into by the office pursuant to s. 517.1204, and all notes, bonds, certificates of indebtedness, other obligations, or evidences of indebtedness secured by such notes, bonds, certificates of indebtedness, or other obligations, have been paid or provision has been made for the payment of such amounts, notes, bonds, certificates of indebtedness, other obligations, or evidences of indebtedness. This assessment fee shall be part of the regular license fee and shall be transferred to or deposited into the Securities Guaranty Fund. The moneys allocated to the Securities Guaranty Fund under this section shall not be included in the calculation of the allocation of the assessment fees referred to in s. 517.131(1)(b). Moneys allocated under this section in excess of the valid claims filed pursuant to subsection (2) shall be allocated to the Anti-Fraud Trust Fund.

(2)(a)  Notwithstanding the provisions of ss. 517.131 and 517.141, moneys allocated to the Securities Guaranty Fund under this section shall be used to pay amounts payable under any service contract entered into by the office pursuant to s. 517.1204, subject to annual appropriation by the Legislature, and to pay investors who have filed claims with the Department of Banking and Finance after October 1, 1996, and on or before December 31, 1998, who have:

1.  Received a final judgment against an associated person of GIC Government Securities, Inc., based upon allegations which would amount to a violation of s. 517.07 or s. 517.301; or

2.  Demonstrated to the former Department of Banking and Finance or office that the claimant has suffered monetary damages as a result of the acts or actions of GIC Government Securities, Inc., or any associated person thereof, based upon allegations which would amount to a violation of s. 517.07 or s. 517.301

(b)1.  Claims shall be paid in the order that they were filed with the former Department of Banking and Finance, unless the department noticed its intent to deny the claim in whole or in part. If a notice of intent to deny a claim in whole or in part was issued, the claim shall not be paid until a final order has been entered which is not subject to an order staying its effect.

2.  If at any time the money in the Securities Guaranty Fund allocated under this section is insufficient to satisfy any valid claim or portion of a valid claim approved by the department or office under this section, the office shall prorate the payment based upon the ratio that the person's claim bears to the total approved claims filed on the same day. The office shall satisfy the unpaid claims as soon as a sufficient amount of money has been deposited in or transferred to the fund as provided in this section.

3.  A claimant shall not be substantially affected by the payment of another person's claim.

(c)  Claims shall be limited to the amount of the investment, reduced by any amounts received from a bankruptcy proceeding or from any other source. If an investor is deceased, the award shall be made to the surviving spouse. If the investor and surviving spouse are both deceased, the award shall be made pursuant to the laws of descent and distribution. Neither the office nor the Investment Fraud Restoration Financing Corporation shall make payment to assignees, secured parties, lien creditors, or other such entities.

(3)  In rendering a determination, the office may rely on records from the bankruptcy proceeding regarding GIC Government Securities, Inc., unless there is good cause to believe that the record is not genuine.

(4)  Amounts deposited into the Securities Guaranty Fund pursuant to this section shall be applied to or allocated for payment of amounts payable by the office pursuant to paragraph (2)(a), under a service contract entered into by the office pursuant to s. 517.1204, subject to annual appropriation by the Legislature, before making or providing for any other disbursements from the fund.

History.--s. 8, ch. 96-338; s. 9, ch. 97-224; s. 2, ch. 98-82; s. 595, ch. 2003-261.