What is a Nevada Money Transmitter Bond?
If you want to engage in the trade of vending or transmitting money or credits within the state of Nevada, you need to comply with the Nevada Department of Business and Industry’s requirement of posting a surety bond, the Nevada Money Transmitter Bond.
The Nevada Money Transmitter Bond is a fail-safe guarantee protecting all consumers that businesses engaged in money transmission will rigorously comply with the money transmitting trade registration requisites mandated within Section 5330 of Title 31, United States Code.
Also, the company responsible for sending money will act decorously and according to sanctioned procedures. Whenever proper transmission of money has not been complied with, the party whose money was mishandled will be compensated through the bond.
Why is the Nevada Money Transmitter Bond an imperative need for you?
As a business engaged in the trade of funds transfer, it is important that your clients and other entities involved, know that you are conducting 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 can be translated into enduring trust for your business.
More details about the Nevada Money Transmitter Bond
For money transmitters operating within the state of Nevada, the $10,000 bond requisite includes an additional $5,000 bond for every location that it is working on but not to exceed $250,000. The said bond must be in the form that the Commissioner will find satisfactory and must be issued by a bonding company authorized to do business in Nevada.
At any time that the Commissioner decides that the security of the public so demands, the Commissioner may issue a directive to increase the initial amount of the bond, but should not be over $10,000 if the licensee has presented his/her current financial statements.
Neither a bonded money transmitter nor the transmitter’s surety may call off or modify a bond except when notification has been sent to the Commissioner by registered or certified mail. Termination or modification does not have an effect on any liability acquired or built upon the bond before the cessation of the 30-day period.
Is the Nevada Money Transmitter Bond expensive?
There are no predetermined amounts for this type of bond. It varies and will greatly depend on your individual financial strength as demonstrated in your credit score. Due to the risks involved in this transaction, the actual rate of the bond premium is higher than most surety bonds.
How can I get a Nevada Money Transmitter Bond?
Obtaining a bond is not difficult. Once required documents have been submitted and inquiries answered, the surety bond company of your choice will conduct a preliminary assessment. Based on the outcomes of the appraisal, your money transmitter bond application will either be approved, or you will be requested to present additional documentation to aid the underwriting process.
So as not to waste time and effort, contact only genuine professionals. Give Surety Bond Authority specialists a call! You will have the answers you need and the solution you need to protect your business and your clients.