Anyone that is creating or arranging loans in North Dakota that is not a financial institution needs to be licensed as a money broker.
Requirements for License
Step #1: Complete an application on the NMLS website
Step #2: Pay $900 application fee
Step #3: Submit personal and business financial reports
Step #4: Purchase $25,000 North Dakota Money Broker Bond
Step #5: Create a business plan
What is a North Dakota Money Broker Bond?
A money broker bond is a type of surety bond that acts as a sort of guarantee that while conducting business you will follow all the rules and regulations set up by the North Dakota Department of Financial Institutions. These bonds can be purchased from most any surety company.
If you do not follow these rules, the Department of Financial Institutions or one of your clients may file a claim against you. The surety company the bond was purchased from would then investigate the claim and if the company found it was a valid claim they would pay out on the bond, up to the full amount. In the end the you are responsible to pay the surety for any losses due to claims.
How Much Does the Bond Cost?
The actual price you pay for your bond is only a portion of the total $25,000 bond amount. The percentage of that amount that you will pay is determined by your credit score and company’s financial history. If you have a decent history you can expect to pay somewhere between 1-5% of the total bond amount.
How can I get a North Dakota Money Broker Bond?
Surety Solutions offers free online quotes for money broker bonds from over 30 different surety companies so that you can find the best price out there. If you are ready to get a quote and/or purchase just click the link below or give us a call at 866.722.9239.
Free North Dakota Money Broker Bond Quotes
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