What is the Nebraska Money Transmitter Bond?
As mandated by the Department of Banking and Finance, all those who engage in money transmission services operating within the state of Nebraska are obligated to post the Nebraska Money Transmitter Bond.
This is a reliable and fail-safe guarantee aimed at protecting all consumers and the state that in the operations of money transmission, a licensed money transmitter will rigorously meet all the terms contained in the money conveyance trade registration requisites and observe the provisions laid down within the Nebraska Money Transmitters Act.
If and when appropriate transmission of money has not been complied with, the party whose money was mismanaged or misused will be compensated through the bond.
Why do you need the Nebraska Money Transmitter Bond?
The Nebraska Transmitter Bond is tremendously indispensable if you want to be recognized as a money transmitter of reliability and uprightness. As you are a business engaged in the trade of funds transfer, it is vital that your clients know that you are operating your business by the state’s money transmission laws and all other regulations applicable to the industry of money transfer. This will give your clients peace of mind that could be translated into lasting trust and confidence for your business.
More details about the Nebraska Money Transmitter Bond
This bond shall remain enforceable until revoked by the surety firm or by the money transmitter. Its validity can be revoked with written notice sent to the Director of the Department of Banking and Finance 30 days before the date of actual revocation.
What is the cost of a Nebraska Money Transmitter Bond?
The Nebraska Money Transmitter Bond is for $100,000. Additionally, the Department of Banking and Finance likewise obliges money transmitters to an additional $5,000 of coverage for each additional location, not to exceed $250,000.
The Nebraska Money Transmitter Bond amount is established by knowing the amount of business entered into by the money transmitter. In particular, the bond must be more than $300,000 or 1% of the aggregate yearly dollar volume of business in the state. The law stipulates that the bond amount shall not exceed $2,000,000 unless the money transmitter’s financial condition is unsatisfactory or problematic, in which case, the bond amount may be set as high as $5,000,000.
The Bond premium amounts vary and are significantly reliant on the money transmitter’s financial strength demonstrated by his/her credit score. Due to the risks involved in this transaction, the actual rate of the bond premium is higher than most surety bonds.
How do I get a Nebraska Money Transmitter Bond?
Obtaining the Nebraska Transmitter Bond is simple. Once required documents have been submitted and inquiries answered, the surety bond company will conduct a preliminary assessment which doesn’t take so much time. Based on the outcomes of the appraisal, the money transmitter bond application will either be approved, or the licensee will be requested to present additional documentation to aid the underwriting process. For faster results, choose a genuine surety bond practitioner and be afforded the professional treatment you rightly deserve.