North Carolina loan brokers wishing to assist with or obtain a third-party loan for any person must be registered with the Secretary of State. Under the certified loan broker registration, brokers are required to obtain a $10,000 Loan Broker Bond. The surety bond ensures that the loan broker will diligently perform their duties in accordance with all loan broker rules and regulations. The bond also acts as a reimbursement guarantee for any person who is financially harmed by the broker.
If you are looking to apply for or maintain a loan broker registration, Jet can help you secure the required accompanying bond quickly and at an affordable price.
With Jet, Loan Broker Bond rates start at $100 annually or $10 monthly. The bond price may vary depending on the broker’s personal credit. Our monthly price option requires no down payment and will not accumulate interest regardless of your credit. You are able to apply and purchase your bond instantly online!
According to loan broker registration rules, a copy of the Loan Broker Bond needs to be submitted to the Secretary of State's office along with two copies of the loan broker disclosure statement. The North Carolina General Statutes 66-107 should be reviewed in order to determine that all information required is in your disclosure statement. The regulations specify that the bond and disclosure statement must be submitted together for both initial and renewal registration applicants.
Jet will send you the original signed and sealed bond right away so you can proceed with filing the bond and disclosure statement to the Secretary of State. All documents and paperwork should be mailed to the address below.
NC Secretary of State
Post Office Box 29622
Raleigh, North Carolina 27626-0622
The Secretary of State’s Securities Division is in charge of regulating investment advising, the selling of stocks and bonds, and loan broker registration. Because of this, registration is required to ensure that loan brokers will follow all state rules and regulations such as meeting ethical business standards, contractual obligations, and are financially responsible when conducting loan brokerage practices with borrowers. The Loan Broker Bond is required by the Division to further protect the public in cases where financial damage occurs.
North Carolina Loan Brokers are expected to follow all state regulations pursuant to General Statutes Article 20, Chapter 66. Failure to do so may result in suspension or revocation of the brokers certificate of registration by the Securities Division, or a damaged borrower may take civil action that could result in a claim on the Loan Broker Bond. Below are key examples of violations that could cause a claim:
All complaints submitted to the Securities Division will be reviewed and investigated. It is in the best interest of the broker to work with the Division or directly with the borrower on resolving the complaint before civil action is pursued by the borrower. Any borrower harmed by a violation of the broker may void the contract and shall be entitled to reimbursement of all sums paid to the broker.
If the Division finds that the received complaint is valid; the borrower may be advised to bring civil action against the loan broker. Once civil action is taken, the court may rule the claim as justified and the borrower can then proceed to file a claim on the bond. The bond claim will pay for the reimbursement of all fees under the contract, any additional damages, and a reasonable attorney's fee fixed by the court.
Promptly contact Jet upon receipt of the court ordered claim payout notification. Jet will immediately commence a review of the claim details and the court’s investigation. While Jet does its best to protect bondholders from inequitable claims, there is little we can do when the claim comes from a state court that has already conducted an investigation and determined the claim to be justified.
If the claim's validity is proven by the courts, Jet will make payment for the claim up to the bond’s limit of $10,000. The loan broker is ultimately responsible for their actions and must reimburse Jet in full for the paid out claim. Failure to do so will result in future difficulties obtaining the Loan Broker Bond and renewing the registration. Failure to register with the Secretary of State, and therefore failing to acquire the Loan Broker Bond, is a Class 1 Misdemeanor offense.
The North Carolina Loan Broker Bond application takes only minutes with Jet! The online application will ask for some basic information including the brokers name, address, and social security number. For an approved rate, a soft credit check will be completed but don’t worry, this will not affect your credit score! Once you select the monthly or annual price option and complete payment, Jet will mail the original bond form to the address of your choice free of charge.
The Loan Broker Bond does not expire with Jet! If you make payments on a monthly basis, there is no need for a bond renewal as payments continue to come out of your preferred account until cancellation is requested. Plus, the bond will remain active for you to submit with your registration application when your annual renewal occurs.
If you choose a 1-, 2-, or 3-year payment option, Jet will send a renewal invoice prior to the bond's expiration. We do not require any renewal fees or extra paperwork, the annual payment is all that is needed.
Yes, you can cancel at any time with Jet. Upon receiving your notice, Jet will promptly file a cancellation notice with the Secretary of State. Liability will be released within 30 days of the cancellation filing date.
If you choose to make monthly payments, Jet will have to charge for the 30-day period as the bond is still active during that time. If you pay for the bond in full up front, Jet will review your bond to see if there is any premium left on the bond available for reimbursement.