Illinois Code § 625 ILCS 5/7-206

Release from liability.
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(a) A person shall be
relieved from the requirement for deposit of security required by Section
7-201 in the event there shall be filed with the Secretary
of State satisfactory evidence that the person
who would otherwise be required to deposit security has been released from liability.

 
(b) A covenant not to sue shall relieve the parties thereto
as to each other from the security requirements of this Article.

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