What is a Louisiana Money Transmitter Bond?
Know why this surety bond matters and how to apply for one today!
You need this surety bond if you provide the following services:
- Transmit money within or outside of the United States
- Issue payment instruments such as traveler’s checks, money orders, or checks
- Accept bill payments as a third-party billing center
All money transmitters in the State of Louisiana are required to submit a surety bond as a prerequisite for their license.
Aside from the surety bond ensuring the compliance of the licensed money transmitters to the laws that govern them, it will also serve as a protection tool for the licensee’s clients.
Under the provisions of the state law, any person who has been injured due to the misconduct of the licensed money transmitter will be eligible to receive compensation through the surety bond.
The surety bond is in line with Section 6:1037 of the Louisiana Revised Statutes.
What is the Money Transmitter Bond amount?
New License Applicant – the bond amount will be based on the first-time license applicant’s business plan for the first year. The minimum bond amount is $25,000.
License Renewal – the bond amount will be based on the following:
- 1/2 of the outstanding checks
- 1% of annual volume of money transmitted rounded to the nearest thousand
The minimum bond amount for license renewals is $25,000, and the maximum bond amount is $500,000.
If you currently have an excellent credit score, you will be eligible to pay a small fraction of the bond amount as your bond premium! Know more by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Money Transmitter Bond?
In order to secure this type of bond, the public adjuster license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the pre-qualification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond conditions?
- The surety bond should be executed by a Louisiana-authorized surety bond agent or company
- The Obligee of the surety bond should be the Louisiana Office of Financial Institutions
- The licensee is obligated to abide by Title 6 Chapter 13 of the Louisiana Revised Statutes, as well as the rules and regulations of the Louisiana Office of Financial Institutions
- If a violation is committed, the person injured can file a surety bond claim
Get bonded immediately! APPLY TODAY!