North Carolina Money Transmitter Bond

North Carolina Money Transmitter Bond

The Money Transmitter Bond is required by the North Carolina Office of the Commissioner of Banks for businesses engaged in the transfer of money within the United States and abroad. The bond amount ranges from $150,000 to $250,000 and is based on the volume of money transmitted throughout the year. The bond is used to protect consumers from a money transmitter defrauding or mishandling money transfers. 

PURCHASE MONEY TRANSMITTER BOND

You can purchase your Money Transmitter Bond with Jet for as low as $150 per month! Jet’s exclusive monthly payment plan lets you buy your bond today for a fraction of the cost. 

What Is the Lowest Price for the Money Transmitter Bond?

The cost for a Money Transmitter Bond starts at $150 per month or $1,500 per year for a $150,000 bond. The starting bond limit is $150,000, but as the volume of money transmissions increases, the bond limit also increases up to a maximum of $250,000. Since the bond limit varies, the cost of the bond will be largely affected by the bond limit that is required by the Commissioner. The cost will depend on underwriting criteria, such as personal credit of the money transmitter.

No matter what your bond limit is, you can be sure that Jet is giving you a fair price. Jet doesn’t work with outside brokers or agents, so there are no extra fees and commissions affecting the cost for your bond. 

How Is the Bond Limit Determined for a Money Transmitter Bond?

The Money Transmitter Bond has a minimum limit of $150,000, given to new licensees and licensees who have transmitted less than $1,000,000 per year. To find your bond limit, look at the chart below.

ClaimantReason for Claim
$150,000Up to $1,000,000
$175,000Greater than $1,000,000 but less than $5,000,000
$200,000Greater than $5,000,000 but less than $10,000,000
$225,000Greater than $10,000,000 but less than $50,000,000
$250,000Greater than $50,000,000
North Carolina Money Transmitter Bond Limits

How Does the Money Transmitter Bond Get Filed?

The Money Transmitter Bond is filed through the Nationwide Multistate Licensing System (NMLS). Jet must receive authorization from the money transmitter to be able to create the bond in the NMLS. Once the bond is completed by you and Jet, the bond can be submitted for filing. Any changes to the bond can be managed through the NMLS.

NMLS Bond Filing Process
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Can I Cancel My Money Transmitter Bond and Get a Refund?

Yes, you can cancel at any time  with Jet! For Money Transmitter Bonds that have been purchased by the year, a refund will be given for any unused premium. Jet will request cancellation right away but the Commissioner will hold the bond in effect for an additional 90 days. You will receive a refund for any time that was left of the bond term after the 90-day period. 

With monthly payments, each payment extends coverage of the upcoming month. Since the Commissioner holds the bond for 90 days before cancellation is complete, cancellation of a monthly payment plan may require up to three additional payments to account for the extended liability. Once the 90-day cancellation period has ended, Jet will cease the payments coming out of your account.

How Does a Money Transmitter Avoid Bond Claims?

The Money Transmitter Bond is a requirement set by the Commissioner of Banks for the protection of the public from a money transmitter acting unlawfully. A money transmitter is obligated to follow the Money Transmitters Act (General Statutes Chapter 53, Article 16B). To avoid claims on their bond, money transmitters must faithfully fulfill their obligations including the receipt, transmission, handling, and payment of money with regards to selling and issuing payment instruments, stored value obligations, or money transmission. Money transmitters are also obligated to make payment that becomes due to any person or the State because of a money transmission. 

The Money Transmitters Act lists prohibited actions that a money transmitter must refrain from under General Statutes 53-208.51. A money transmitter must not:

If the money transmitter is found in violation of these statutes, a claim can be filed on the surety bond for a sender to receive restitution. The claim can be filed by the sender or the Commissioner on their behalf in one action or in successive actions.

The Commissioner holds authority to discipline a money transmitter under General Statutes 53-208.57. The Commissioner can impose a penalty on the money transmitter, instruct the money transmitter to refund a sender for a failed transmission, or even suspend or revoke the money transmitter’s license.

What Happens If I Get a Bond Claim?

If you receive a claim against your Money Transmitter Bond, Jet will investigate to find whether the claim is valid or not. Jet must notify the Commissioner within five days of the claim. If the claim is legitimate, Jet will pay the claimant in the amount of the claim, up to the full limit of the bond. Although Jet initially pays the claimant, you are still ultimately responsible for your actions as a money transmitter and must pay Jet back in the amount of the claim. 

Receiving a claim on your bond can result in future difficulties obtaining the surety bond and license needed to operate as a money transmitter in North Carolina.

Why Is the Money Transmitter Bond Required in North Carolina?

The Office of the Commissioner of Banks is responsible for regulating money transmitters, as well as mortgage companies, trust companies, and state banks. The Commissioner ensures that the public will not be harmed through licensees’ illegal actions. 

The purpose of the Money Transmitter Bond is to protect those who are sending money from any fraudulent or deceitful money transmitter actions. The bond ensures that a consumer’s funds are not misappropriated or mishandled under the money transmitter’s possession. A money transmitter is one who sells or issues payment instruments (such as checks, money orders, travelers checks, etc.) or stored value or receives payment for the transmission or holding of funds within the United States or abroad primarily for personal, household, or family purposes.

How Does the Application Process Work With Jet?

Applying for a Money Transmitter Bond with Jet only takes a couple of minutes! The application will walk you through the needed information step-by-step. An applicant’s social security number must be submitted for a soft credit check. Once complete, Money Transmitter Bond applications will need to be reviewed by a Jet underwriter. If additional information is needed, a Jet team member will contact you. Once a rate has been approved, you will receive an emailed quote for your bond that is ready for purchase online. 

PURCHASE MONEY TRANSMITTER BOND

How to Renew the Money Transmitter Bond

When it is time to renew your Money Transmitter Bond, Jet will send you a notification a few months before the renewal date. Whether you renew by mail or email, your renewal notice only takes a minute to fill out and submit to Jet. 

If your bond limit changes based on the volume of money that was transmitted in the previous year, a rider can be issued to adjust the bond limit at the time of renewal. Increases in the bond limit must be addressed by May 31st of the following year. 

The Money Transmitter Bond is continuous until cancelled. The bond doesn’t have a set expiration date, but Jet (like other sureties) will issue the bond in annual terms. If the renewal premium is not paid by the renewal date, the bond will be cancelled by Jet. Monthly payments don’t have renewal dates (since each payment keeps the bond running for another month) but if payment is not made, the bond will be cancelled by nonpayment of premium.

North Carolina Money Transmitter 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: