1. (1) Notwithstanding s. 517.131(1) and until the department 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), 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 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. (2)

   1. (a) Notwithstanding the provisions of ss. 517.131 and 517.141, moneys in the Securities Guaranty Fund shall be used to pay investors who have filed claims with the Department of Banking and Finance after October 1, 1996, and on or before December 31, 1997, 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 department 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.

   2. (b) 1. Claims shall be paid in the order that they have been filed with the department, unless the department has 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 is 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 under this section, the department 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 department 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.

   3. (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.
3. (3) In rendering a determination, the department 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.

History.--s. 8, ch. 96-338; s. 9, ch. 97-224.