What is a North Carolina Loan Broker Bond?
Get the information you need about this surety bond right here!
What is a Loan Broker Bond?
The North Carolina Department of Insurance requires every loan broker to procure a surety bond before he or she can assist or obtain a third-party loan for any person.
The purpose of the surety bond is to ensure that the loan broker will faithfully perform his or her duties in accordance with the relevant statutes, rules, and regulations.
Some of these includes:
- That every loan brokerage contract will be in writing
- That the loan broker will not use misleading statements in the loan brokerage contract
- That the loan broker will provide a disclosure statement in the form of a written document to the person he or she is entering into a contract with
- File two copies of the disclosure statement with the Secretary of State
The Obligee of the surety bond will have the right to take action on the surety bond if the loan broker commits misconduct.
This is to compensate any rightful beneficiary who has been harmed by the loan broker’s wrongful acts.
This requirement is mandated by Article 20 of the North Carolina General Statutes.
What is a Loan Broker Bond amount?
The bond amount is $10,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium! Bond premium starts at $100.
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Loan Broker 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:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- 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 that is authorized to conduct business in the State of North Carolina
- The surety bond should be made payable to the State of North Carolina
- The loan broker is obligated to obey the provisions of Article 20 of the North Carolina General Statutes as well as the rules and regulations of the North Carolina Department of Insurance
- If the loan broker commits a violation, the aggrieved party will be eligible to file a claim against the surety bond