What is an Indiana Money Transmitter Bond?

Know the how-to of this important requirement for money transmitters!

Indiana Money Transmitter BondIn order to perform the following tasks, a money transmitter must first obtain a license and a surety bond:

  • Receive money for transmission
  • Issue payment instruments

The Indiana Department of Financial Institutions requires persons who are applying for a money transmitter license to procure a surety bond.

This is to ensure that the money transmitter will perform its obligations according to the Indiana Money Transmitter Act (IMTA), as well as the rules and regulations of the Indiana Department of Financial Institutions.

If the licensed money transmitter deviates from the IMTA and the applicable rules, resulting in damages suffered by a person, the Obligee of the surety bond will have the right to recover the amount lost by filing a claim against the surety bond.

This requirement is in accordance with Section 28-8-4-27 of the Indiana Code.

 

What is the Money Transmitter Bond amount?

The bond amount is $300,000.

If you have an excellent credit score, you will be eligible to pay for a low bond premium or just 1% of the bond amount!

 

How can I get a Money Transmitter Bond?

You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.

Here’s how to do get bonded:

  1. You have to send an application to us. Fill out our FREE SURETY BOND QUOTE HERE.
  2. After we have received your application, we will ask you to submit the necessary information needed for the underwriting process, including your credit score report.

An expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.

  1. Your surety bond will be issued and sent to you!

 

What are the surety bond conditions?

  • The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of Indiana
  • The State of Indiana, Department of Financial Institutions should be named as the Obligee
  • The surety bond should be written on a form that is approved by the Director of Financial Institutions
  • The licensed money transmitter is obligated to comply with the provisions of the Indiana Money Transmitter Act (IMTA) or IC 28-8-4-20 through IC 28-8-4-23 and IC 28-8-4-27(d), as well as the rules and regulations of the State of Indiana, Department of Financial Institutions
  • If the licensed money transmitter commits a valid violation, the aggrieved party will be eligible to file a claim against the surety bond up to its penal sum

Ready to apply? Contact us now!

Liked this content? Share it!