The Utah Department of Financial Institutions (UTDFI), otherwise known as the Department, regulates and administers the money transmitter program and has oversight of the licensing, as well as handling of consumer complaints and auditing. The Department has assigned the license application process to be done through the Nationwide Multistate Licensing System (NMLS). A money transmitter license in Utah allows for activities such as electronic money transmission, check cashing, selling and issuing of traveler's checks, selling and issuing of money orders, and selling and issuing of prepaid access.
The Utah Money Transmitter Act (Title 7 Chapter 25 Part 2) requires any person providing money business services including money transmitters to first obtain a license. A minimum $50,000 surety bond will be required when applying for the license.
The obligee is the entity that requires the surety bond to be on file. The obligee is the Utah Department of Financial Institutions. The surety bond is required to protect consumers in the event a money transmitter (the licensee) fails to comply with the state regulations and if found in violation, the penalty will be paid for from the bond. The licensee (the principal listed on the bond) is responsible for the claimed amount and If the surety pays the claim, the principal is required to reimburse the surety for the loss.
A minimum $50,000 surety bond is required and the bond amount may be increased at the discretion of the Department.
The premium that you pay for a Utah Money Transmitter Surety Bond is dependent on credit and the bond amount required. Personal and business financial statements will be required for the underwriting process for bond amounts over $50,000.
Effective 1/1/2018, applications and surety bonds must be submitted through the NMLS online license system. All non-electronic applications must be converted no later than December 31, 2018.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. 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.
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