North Carolina Loan Broker Bond

North Carolina Loan Broker Bond

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.

PURCHASE LOAN BROKER BOND

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.

What Is the Price for the North Carolina Loan Broker Bond?

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!

How Does the Loan Broker Bond Filing Process Work?

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
Loan Broker
Post Office Box 29622
Raleigh, North Carolina 27626-0622

Why Is the Loan Broker Bond Required by the North Carolina Secretary of State?

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.

How Does a Loan Broker Avoid Bond Claims?

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.

What Happens If a Claim Is Filed on the Loan Broker Bond?

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.

How to Apply for the Loan Broker Bond with Jet

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.

PURCHASE LOAN BROKER BOND

Does the Loan Broker Bond Expire in North Carolina?

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. 

Can I Cancel the Loan Broker Bond and Get a Refund?

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.

If you are in need of further details on the mortgage industry, licensure processes in multiple states, and applicable surety bond regulations, take a look at Jet’s comprehensive Mortgage License Bonds Guide.

North Carolina Loan Broker Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: