Maine Money Transmitter License Surety Bond

Maine's Bureau of Consumer Credit Protection oversees many aspects of the consumer finance industry. The office administers state credit-related statutes and protects consumers by conducting compliance examinations, investigates consumer complaints, issuing licenses and providing consumer education and outreach. Money transmitters are among the industries the office regulates.

A money transmitter or servicer is a person or business that sells or issues payment instruments, or receives money for transmission or transmitting money by any means, including, but not limited to, payment instrument, wire, facsimile or electronic transfer.

Payment instruments include checks, drafts, money orders, traveler's checks or other instruments for the transmission or payment of money.

Money transmitters in Maine must be licensed before they can operate their business and are required to have a form of security such as a surety bond.

Surety Bond Requirements:

Maine money transmitters are required to obtain a $100,000 surety bond or other security. Maine's Bureau of Consumer Credit Protection is the obligee requiring the bond.

A surety bond secures the faithful performance of the licensee with respect to the sale and issuance of payment instruments and transmission of money. If a money transmitter violates state laws or regulations, a claim may be placed against the security device. In the case of a claim on a surety bond, the licensee (the principal listed on the bond) is responsible for repayment of the claimed amount. If the surety pays the claim, the principal is required to reimburse the surety.

Surety bond requirements include:

• Money transmitters must upload and mail an original surety bond for $100,000 by a surety company that is authorized to do business in Maine. SuretyGroup.com is licensed to write surety bonds in Maine and fulfills this requirement.
• All DBAs must be listed on the surety bond
• The name of the principal insured on the bond must match exactly the Full Legal Name of applicant and must include the names of all DBAs.
• Instead of a surety bond, licensees may submit another for of security including cash, interest-bearing stocks and bonds, notes, and debentures.
• The security remains in place until cancellation, which may only occur after 30 days' written notice to the administrator. Cancellation does not affect any liability incurred or accrued during that period.
• The security remains in place for five years after the licensee ceases money transmission operations in the State. The administrator may allow the security to be reduced or eliminated during this time, or to be replaced with another type of security.

License Requirements:

Money transmitters in Maine must be licensed, and a single license allows a licensee to conduct business at one or more locations.

Information and Documentation Needed for Licensing Includes:

• Submit an application found on the National Mortgage Licensing System (NMLS), along with application fee of $500 plus $50 for each delegate, up to $2,500 maximum.
• Applicants must show a net worth of not less than $100,000, plus an additional worth of $50,000 for each authorized delegate, up to a $500,000 maximum.
• Authorized Agents (Delegates) Locations: On a quarterly basis, report authorized agents on the NMLS.
• Other Trade Name: List all DBAs that are registered with the Maine Secretary of State. There is no limit on the number of DBAs.
• Resident/Registered Agent
• Bank Account information
• Disclosure Questions - Provide an explanation for any "yes" answers.
• Financial Statements
• Permissible Investments
• Business Volume
• Business Plan
• Certificate of Authority/Good Standing Certificate
• Authorized Delegate Agreement
• Document Samples
• Formation Document
• Management Chart
• Organizational Chart/Description
• Trust Account Authorization
• Surety Bond: Upload and mail the original $100,000 surety bond.

How Much Does This Bond Cost?

The premium that you pay for a Maine Money Transmitter Surety Bond is dependent on credit and the bond amount required. Our rates start at 1.5% of the bond amount. Business and personal financial documents will be required for underwriting. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

Did You Know?

Once a licensee's application is complete, the administrator will investigate the applicant's financial condition and responsibility, financial and business experience, character, and general fitness.

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