Surety bonds

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  1. (a)

    1. (1) Except as otherwise provided in subsection (b), a money transmission licensee shall maintain a surety bond in an amount based on the previous year's:

      1. (A) Money transmission dollar volume;

      2. (B) Payment instrument dollar volume; and

      3. (C) Stored value dollar volume.

    2. (2) The minimum surety bond amount shall be at least $10,000, and the maximum surety bond amount shall not exceed $300,000.

    3. (3) The commissioner may set specific required bond amounts by rule.

  2. (b) The surety bond must be in a form satisfactory to the commissioner.

  3. (c) Every surety bond shall provide for suit on the bond by any person who has a cause of action under this chapter. The aggregate liability of the surety to all persons, cumulative or otherwise, may not exceed the principal sum of the bond.

  4. (d) A surety bond must cover claims for so long as the commissioner specifies, but for at least five years after the licensee ceases to provide money services in this State. However, the commissioner may permit the amount of a surety bond to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee's payment instruments or stored-value and prepaid access obligations outstanding in this State is reduced.

  5. (e) The commissioner may increase the amount of a surety bond required to a maximum of $1,000,000 if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria.


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