Licensees and applicants for a money transmitter or a seller of payment instruments license must have and maintain a surety bond in a form and terms acceptable and payable to the Department. Minimum bond requirements are $100,000 for money transmitters and $250,000 for sellers of payment instruments. Additional bond coverage may be required, but may not exceed $2,000,000.
Electronic Surety Bonds (ESB)
Electronic surety bonds (ESB) for money transmitters and sellers of payment instruments were available in NMLS starting January 23, 2017. New company license applications of these types submitted after January 23, 2017 are required to meet all surety bond requirements by completing the electronic surety bond process. See the ESB Adoption Map and Table for more information.
What is a surety bond and why do I need to have one?
A surety bond is a three-party instrument between a surety (insurance company), the licensee, and the Department. The agreement binds the licensee to comply with the terms and conditions of the laws and regulations concerning the issuance of their license. If the licensee is unable to successfully meet those requirements, the surety assumes certain monetary obligations required for performance under that surety bond for the licensee, and ensures that the obligations are met. Such obligations may be those owed to qualifying consumers, other creditors, or the Department.
Can the Department return my bond?
The Department cannot return a bond to a licensee or its surety.
Can the Department release the Surety from liability?
The Department cannot execute a general release that discharges a surety from any past, present or future liability under a bond.