North Dakota Money Transmitter Company Surety Bond
North Dakota requires a Money Transmitter Company to have a license and a surety bond to operate a check cashing, money transfer or pay day loan business. The bond guarantees faithful performance of the receipt, handling, transmission and payment of money. The bond amount varies, and can be from $150,000 to $500,000. Applicants must apply through the National Mortgage Licensing System (NMLS).
The Surety Bond and License Requirements:
- Applicants must complete the application and pay the license and credit report fees.
- Provide a copy of the business financial statements prepared by a CPA that includes a Balance Sheet, Income Statement, Statement of Cash Flows and any relevant notes. Applicants must show a net worth of no less than $100,000.
- Provide a personal financial statement for any individual that owns 25% of the company directly or indirectly.
- Provide the following documents: a business plan, a management chart, an organizational chart, document samples such as contract and payment instrument, etc., a Certificate of Authority or Good Standing Certificate, a list of permissible investments.
- Obtain a $150,000 surety bond (minimum bond amount). The surety bond amount may be increased to a maximum of $500,000 based on the volume of payments and money transmissions.
- Instead of a surety bond, an irrevocable letter of credit or other security may be deposited with the State.
- Direct and indirect owners, executive officers, qualifying individuals must be able to pass a criminal background check and a credit check. If any answers to the Disclosure Statement is answered yes, provide an explanation with any backup information that can support it.
- If using a trade name or dba, provide a copy of the ND Secretary of State Certificate of Authority.
How Much Will This Bond Cost?
The premium that you pay for a North Dakota Money Transmitter Surety Bond is based on credit, bond amount needed and business and personal financials.
More Surety Bond Questions?
Check out our FAQ page. Should you need or choose to buy a surety bond, SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
For a downloadable application