13-10-13. Surety bond and minimum net worth requirements - Surety bond required.
217 words·~1 min read·
/nd/title-13/chapter-13-10-mortgage-loan-originators/13-10-13·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. Each mortgage loan originator must be covered by a surety bond in accordance with
this section. If the mortgage loan originator is an employee or exclusive agent of a
person subject to this chapter, the surety bond of such person subject to this chapter
may be used in lieu of the mortgage loan originator's surety bond requirement.
a. The surety bond shall provide coverage for each mortgage loan originator in an
amount as prescribed in subsection 2.
b. The surety bond must be in a form as prescribed by the commissioner.
c. The commissioner may promulgate rules or regulations with respect to the
requirements for such surety bonds as are necessary to accomplish the purposes
of this chapter.
2. The licensee shall maintain a surety bond in the amount as determined by the
commissioner by rule. The amount must be reflective of the dollar amount of loans
originated as of the previous yearend. However, the commissioner may increase the
amount of the surety bond if the commissioner determines that such an increase is
necessary to protect the public interests.
3. When an action is commenced on a licensee's bond, the commissioner may require
the filing of a new bond.
4. Immediately upon recovery upon any action on the bond, the licensee shall file a new
bond.