What is an Ohio Money Transmitter Bond?

Get to know what this bond is all about and how you can apply for one!

Ohio Money Transmitter BondMoney Transmitter license applicants and licensees are required to post and maintain a surety bond as mandated by the Ohio Department of Commerce’s Division of Financial Institutions, in accordance with Chapter 1315.07 of the Ohio Revised Code.

A Money Transmitter is a person or business entity who is authorized in the State of Ohio to engage in the business of performing money transmission services.

 

What is the bond amount?

The bond amount varies. The Superintendent of Financial institutions will determine the bond amount for the license applicant.

However, the bond amount will not be less than $300,000, nor should it exceed $2,000,000.

Those who have excellent credit scores may qualify for a very low bond premium or just 1% of the bond amount!  Find out what you need to pay by getting your FREE quote here!

 

What are the Money Transmitter bond conditions?

  • The bond will be a legally binding agreement between these three key parties:

Principal – The Money Transmitter license applicant or licensee

Obligee – The Superintendent of the Ohio Division of Financial Institutions

Surety – the surety bond company who will issue the bond

  • The surety bond company should be authorized to conduct business in the State of Ohio such as Surety Bond Authority
  • The bond should be made payable to the Superintendent of the Ohio Division of Financial Institutions
  • The Money Transmitter license applicant or licensee should comply with the provisions of Chapter 1315 of the Ohio Revised Code, the rules and regulations of Ohio Department of Commerce’s Division of Financial Institutions, and all the other applicable rules that govern money transmitters in Ohio
  • All money, or its equivalent, that is deposited to the Money Transmitter should be properly transmitted
  • In case of a valid violation committed by the Money Transmitter licensee, the aggrieved party will be eligible to file a claim on the bond
  • The bond shall remain valid until canceled. In the case of cancellation, a 30-day notice is required.

 

How can I obtain a Money Transmitter bond?

In order to secure this type of bond, the Money Transmitter license applicant must seek the assistance of a surety bond company.

You will be asked to apply for this bond.

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. We will make sure that you understand all the conditions before we issue the bond.

An underwriter will then evaluate your financial strength, job/business performance history, and your credit score.

Once the pre-qualification process is fulfilled, we will execute the bond and send it to you!

Are you ready to get started on this bond today? Call us today!

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