New York Instruments Budget Planner Bond
Obtain one of the most important requirements for budget planners in New York ASAP!
What is a New York Instruments Budget Planner Bond?
It is a budget planner license requirement that will be used as a trust fund for debtors.
This bond will serve as assurance regarding the budget planners’ compliance with the relevant laws of the state. That includes carrying out the terms of the contract that the budget planner has entered into with the debtor.
In addition, in the event of a bond claim, the proceeds for the said claim will be used for the following:
- Reimburse payment by debtors that have not been properly distributed to creditors
- Reimburse fees determined by the Superintendent to be improperly charged or collected
- Pay outstanding Banking Department examination costs and assessments in case of insolvency, liquidation, or bankruptcy of the budget planner
This requirement is in pursuance of Article XII-C of the New York Banking Law.
How much does a New York Instruments Budget Planner Bond cost?
The bond premium will vary per budget planner license applicant. This will be based on the applicant’s credit score.
The bond premium will range from 1% to 10% of the bond amount.
Know more by giving us a call. You may also GET YOUR FREE SURETY BOND QUOTE HERE!
The Superintendent of Banks of the State of New York may require a larger bond amount if the “licensee has engaged in a pattern of conduct resulting in bona fide consumer complaints of misconduct and that such increased bond is necessary for the protection of consumers.”
The Superintendent of Banks of the State of New York may “increase or decrease the amount of such bond based upon the applicant's or licensee's financial condition, business plan, and the actual or estimated aggregate amount of payments and fees paid by debtors to such licensee.”
How can I get a New York Instruments Budget Planner Bond?
APPLY FOR THIS BOND – We begin the bonding process with an application. You may send your application for this bond HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
ISSUANCE – Once the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you as soon as the indemnity agreement has been signed.
How does a New York Instruments Budget Planner Bond work?
Parties to the bond:
- Principal – budget planner license applicant
- Obligee – Superintendent of Banks of the State of New York
- Surety – Surety bond provider
This bond will protect the debtor against losses if the principal violates any of his or her contractual obligations. The bond will remain void if the Principal fulfills all the required duties without any violation. If the opposite happens, the Obligee will seek compensation for the losses incurred by filing a claim against the bond. The Surety will pay the Obligee, but the Principal must reimburse the Surety after.
Ready to apply for your surety bond? START HERE!