# 50 Ill. Adm. Code 205.80: Section 205.80 Collateral Security

> Illinois · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_80

## Section

- **Citation:** 50 Ill. Adm. Code 205.80
- **Heading:** Section 205.80 Collateral Security
- **Jurisdiction:** Illinois
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Illinois Administrative Code / Title 50 INSURANCE / CHAPTER I: DEPARTMENT OF INSURANCE / Part 205 MUNICIPAL BOND INSURANCE / Section 205.80 Collateral Security

## Text

Section 205
Section 205.80  Collateral
Security
An insurer transacting municipal
bond insurance as defined in Section 205.30 insurer may, for the purposes of
Section 205.50, treat the amount of a clean, irrevocable letter of credit or
other assets which would qualify under Section 173.1(2) of the Illinois
Insurance Code (Ill. Rev. Stat. 1985, ch.73, par. 171.1(2)) deposited with it
or held in trust to secure payment of the insured principal and interest, as a
reduction in the amount of exposure insured.

## Nearby sections

- [50 Ill. Adm. Code 205.10 Section 205.10  Authority](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_10.md)
- [50 Ill. Adm. Code 205.20 Section 205.20  Purpose](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_20.md)
- [50 Ill. Adm. Code 205.30 Section 205.30  Definitions](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_30.md)
- [50 Ill. Adm. Code 205.40 Section 205.40  Requirements](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_40.md)
- [50 Ill. Adm. Code 205.50 Section 205.50  Limitations and Restrictions](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_50.md)
- [50 Ill. Adm. Code 205.60 Section 205.60  Financial Statements](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_60.md)
- [50 Ill. Adm. Code 205.70 Section 205.70  Reinsurance](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_70.md)
- [50 Ill. Adm. Code 205.80 Section 205.80  Collateral Security](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_80.md)
- [50 Ill. Adm. Code 205.90 Section 205.90  Applicability of Other Laws](https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_90.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T50_P205_S205_80. Check the current official text before relying on it. Not legal advice.