California Finance Lender and Finance Broker Bond
Know why you need this bond and how to obtain one fast!
What is a California Finance Lender and Finance Broker Bond?
Every finance lender or finance broker who is applying for a California Finance Lenders license is required by the California Department of Business Oversight to obtain this bond.
This bond will ensure that the finance lender or finance broker will fulfill their duties in compliance with the relevant provisions of the California Financial Code.
It will also be conditioned that they will comply with the rules and regulations set forth by the Commissioner of the California Department of Business Oversight.
In the event that the finance lender or finance broker fails to accomplish the said obligations or violates any of the relevant laws, rules, and regulations, the person who will be harmed will be eligible for financial compensation by filing a bond claim.
This requirement is in pursuance of Section 22112 of the California Financial Code.
How much does a California Finance Lender and Finance Broker Bond cost?
This will vary per finance lender or finance broker. The bond cost will typically range from less than 1% to 5% of the bond amount, depending on the license applicant’s credit score.
The bond amount will be determined by the Commissioner of the California Department of Business Oversight. The minimum bond amount is $25,000.
If you have determined your bond amount, you may check your bond premium by getting your FREE QUOTE HERE from us!
How can I get a California Finance Lender and Finance Broker Bond?
The first thing that you should do is to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Your application will be processed as soon as we’ve received it. One of our expert surety bond agents will contact you regarding the next step. You will be guided throughout the whole process. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will assess the following during the prequalification step:
- Your financial strength
- Your job/business performance history
- Your credit score
Once that’s done, you’ll be asked to sign an indemnity agreement. After that, the bond will be issued and sent to you.
How does a California Finance Lender and Finance Broker Bond work?
A surety bond is a three-party agreement.
Principal – finance lender or finance broker
Obligee – State of California
Surety – the party who will issue the bond
The Principal and the Surety will partner in assuring the performance of the former to the Obligee. The Principal is primarily responsible for the fulfillment of the obligations required by the Obligee. If the Principal fails to do any of the bonded obligations required by the relevant laws, rules, and regulations, the Obligee can file a bond claim.
The claim will first be verified by the Surety before it is settled. Once the Surety has settled the claim, the Principal will reimburse the Surety for the payments made.
Ready to start on your bond? APPLY HERE!