California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 6 - California Financing Law › Article 3 - Books, Records and Examinations › Section 1437 - Surety Bond

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Every licensee shall maintain a surety bond in accordance
					 with section
					 22112 of
					 the Financial Code as follows:
(a) A
				  licensee that does not make residential mortgage loans and does not employ one
				  or more mortgage loan originators shall post a surety bond in the amount of
				  $25,000.
(b) A mortgage lender,
				  mortgage broker, or mortgage lender and broker shall post a surety bond based
				  on the aggregate dollar amount of residential mortgage loans originated by the
				  mortgage lender, mortgage broker, mortgage lender and broker in the preceding
				  year, as follows:
Aggregate Loans
Bond Amount
0 - $1,000,000
$25,000
$1,000,001 - $50,000,000
$50,000
$50,000,001 - $500,000,000
$100,000
Over $500,000,001
$200,000
(c)
(1) The surety bond shall be in the form
				  provided as Exhibit B to the application for a license as a finance lender or
				  broker in section
				  1422 of these rules, unless the
				  applicant or licensee is filing through NMLS.
(2) For an applicant or licensee filing
				  through NMLS, all surety bonds, amendments, cancellations, notices of claims,
				  and information related to surety bonds, shall be filed with, and processed
				  through, NMLS.
(3) When filing
				  through NMLS, the surety bond shall be in the form of an electronic surety and
				  shall include the following information and representations by the applicant or
				  licensee, and the surety:
Bond No. [Bond Number]
Bond Amount: [Bond Amount]
Effective Date: [Bond Effective Date]
KNOW ALL PERSONS BY THESE PRESENTS:
That we, [Licensee/Principal Name] including any and all
					 trade names, NMLS # [Licensee/Principal NMLS ID], as Principal, whose address
					 for service is [Principal Address for Service], and [Surety Name], NAIC #
					 [Surety NAIC], whose address for service is [Surety Address for Service], duly
					 licensed to do surety business in the State of California as Surety (Principal
					 and Surety together are hereinafter collectively referred to as "Obligors"),
					 are held and firmly bound unto the Commissioner of Financial Protection and
					 Innovation of the State of California ("Commissioner") for use by the
					 Commissioner, for its own benefit, and for the benefit of any person or persons
					 who may have a cause of action against us as the Obligors of this instrument
					 under the provisions of the California Financing Law, California Financial Code
					 section
					 22000 et
					 seq., the provisions of Chapter 2 (commencing with section
					 995.010) of Title 14, Part 2,
					 California Code of Civil Procedure, and Financial Code section
					 22112,
					 hereafter described in the penal sum of [Bond Amount], lawful money of the
					 United States of America, to be paid to the Commissioner for which payment well
					 and truly to be made, we bind ourselves, our heirs, executors, administrators,
					 successors and assigns, jointly and severally, firmly by these presents:
Whereas, the above bound Principal has applied to the
					 Commissioner for a license to engage in the business of finance lending,
					 brokering, or administering a PACE program, as provided by law under the
					 California Financing Law.
THE CONDITION OF THIS OBLIGATION IS SUCH, that if the
					 Principal and any employee or agent representing the Principal, working at any
					 location, faithfully conform to and abide by each and every provision of the
					 California Financing Law, California Financial Code section
					 22000 et
					 seq., and all amendments thereto, and of all rules and regulations and orders
					 lawfully made by the Commissioner, and pay to the Commissioner, and to any such
					 person or persons having a right of action against the Obligors any and all
					 monies that may become due or owing to the Commissioner, and to such person or
					 persons from said Obligors under and by virtue of the provisions of the
					 California Financing Law, then this obligation to be void; otherwise to remain
					 in full force and effect until the Surety is released from liability by the
					 Commissioner, subject, however, to the following conditions:
1. The Surety may reduce coverage by amending
				  the effective date or the bond amount, or may cancel this bond thirty days from
				  date of receipt of notice delivered electronically through NMLS to the
				  Principal and the Commissioner, but no such amendment or cancellation shall
				  affect any liability which arises from acts or omissions which occur prior to
				  the termination of such thirty-day period.
2. In no event shall the aggregate liability
				  of the Surety for any and all claims exceed the penal sum of this Bond stated
				  herein.
3. The Commissioner has the
				  exclusive right to proceed on this bond against the Principal or Surety hereon
				  or both to recover any and all moneys that may become due or owing.
In Witness Whereof, The said Principal has hereto set his
					 hand and seal and the said Surety has caused this obligation to be duly
					 executed by its duly authorized agent to be hereunto affixed on this [Day of
					 Signatory Date] day of [Month of Signatory Date], [Signatory Year].
By: [Principal Signee]
Principal
I certify under penalty of perjury under the laws of the
					 State of California that I have executed the foregoing bond under an unrevoked
					 power of attorney.
By: [Surety Signee]
Surety