2023 Indiana Code › Title 28. Financial Institutions › Article 8. Financial Services › Chapter 4. Money Transmitters › 28-8-4-27. Surety Bond; Requirements; Amount; Termination; Liability; Notices

Note: This version of section effective until 1-1-2024. See also following repeal of this chapter, effective 1-1-2024.
Sec. 27. (a) An application for licensure under this chapter must be accompanied by a surety bond in accordance with this section.
(b) The surety bond required under subsection (a) must:
(1) be in the amount of three hundred thousand dollars ($300,000);
(2) be in a form acceptable to the director;
(3) be in effect during the term of the license issued under this chapter;
(4) subject to subsection (c), remain in effect during the five (5) years after the license of the licensee is surrendered or terminated;
(5) be payable to the department for the benefit of:
(A) the state;
(B) individuals who reside in Indiana when they agree to receive money transmission services from the licensee; and
(C) entities that do business in Indiana when they agree to receive money transmission services from the licensee;
(6) be issued by a bonding, surety, or insurance company authorized to do business in Indiana and rated at least "A-" by at least one (1) nationally recognized investment rating service; and
(7) have payment conditioned upon the licensee's or any of the licensee's employees' or agents' noncompliance with or violation of this chapter or other applicable federal or state laws or regulations.
(c) The director may adopt rules or guidance documents with respect to the requirements for a surety bond as necessary to accomplish the purposes of this chapter. Upon written request from a licensee, the director may, at the discretion of the director, waive or shorten the five (5) year period set forth in subsection (b)(4) during which a surety bond required by this section must remain in effect after the licensee's license is surrendered or terminated.
(d) If the principal amount of a surety bond required under this section is reduced by payment of a claim or judgment, the licensee for whom the bond is issued shall immediately notify the director of the reduction and, not later than thirty (30) days after notice by the director, file a new or an additional surety bond in the amount needed to restore the amount of the surety bond to three hundred thousand dollars ($300,000).
(e) If for any reason a surety terminates a bond issued under this section, the licensee shall immediately notify the department and file a new surety bond in the amount of three hundred thousand dollars ($300,000).
(f) Cancellation of a surety bond issued under this section does not affect any liability incurred or accrued during the period when the surety bond was in effect.
(g) The director may obtain satisfaction from a surety bond issued under this section if the director incurs expenses, issues a final order, or recovers a final judgment under this chapter.
(h) Notices required under this section must be made in writing and submitted through the NMLSR or any other electronic registration system that may be approved by the director.
As added by P.L.42-1993, SEC.85. Amended by P.L.73-2004, SEC.38; P.L.216-2013, SEC.51; P.L.176-2019, SEC.62; P.L.129-2020, SEC.21.