Sec. 7-12. Surety bond required.
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/il/chapter-205/act-635/7-12A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 7-12. Surety bond required.
(a)Each mortgage loan originator shall be covered by a surety bond in accordance with this Section. In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to this Act, the surety bond of such person subject to this Act can be used in lieu of the mortgage loan originator's surety bond requirement. The surety bond shall provide coverage for each mortgage loan originator in an amount prescribed under subsection
(b)of this Section. The surety bond shall be in a form prescribed by the Director. The Director may promulgate rules or regulations with respect to the requirements for such surety bonds as necessary to accomplish the purposes of this Act.
(b)The penal sum of the surety bond shall be maintained in an amount that reflects the dollar amount of loans originated as determined by the Director.
(c)When an action is commenced on a licensee's bond the Director may require the filing of a new bond.
(d)Immediately upon recovery upon any action on the bond the licensee shall file a new bond.