Ohio Short Term Lender Bond

Ohio Short Term Lender Bond

The Ohio Division of Financial Institutions (DFI) mandates that anyone providing short-term loans is licensed and holds a Short Term Lender Surety Bond. The bond, offered by Jet Insurance Company, is a tool used by the DFI which guarantees restitution should you fail to follow regulations, leading to financial losses of the DFI or Ohio’s citizens.

VIEW YOUR BOND PRICE

Choosing Jet as your surety company ensures a smooth process and affordable rates. Jet also provides claims defense, should it be needed.

What Is the Bond Limit and Cost of the Ohio Short Term Lender Bond? 

The bond limit starts at $100,000 unless you are a nonprofit, then the minimum bond limit is $50,000. After submitting your application, the Division of Financial Institutions will let you know what bond amount is required.

The cost is based on your personal credit (don’t worry, it’s a soft credit check) and will be a small percentage of the bond amount.

Why Is the Short Term Lender Bond Required By the Ohio Division of Financial Institutions?

The Ohio Division of Financial Institutions has the best interest of Ohio’s public in mind when creating and managing regulations for the various chartered financial institutions and consumer finance companies in the State. 

Under the DFI, short term lenders must be licensed and maintain a license bond for the lifetime of their operations in Ohio. The reason for the bond, and Jet’s purpose, is to provide a means of reimbursement when a licensee has committed a violation of the Short Term Loan Act which has caused someone financial hardship. This may happen, for example, if the licensee decides to charge an interest rate over 28% per year.

Short-term loan requirements can be reviewed under the Ohio Revised Code Section 1321.39.

How to Apply for the Ohio Short Term Lender Bond With Jet 

Our application takes you through each question step-by-step only asking for the information necessary to get you a quote, such as your social security number (for the soft credit check) and bond limit. 

Once submitted, Jet will review the application details and get back to you if any additional information is needed (like financial statements). A quote will be emailed to you when approved and you can purchase the bond online. After payment, you will receive a copy of the bond and your receipt.

Can Jet File the Ohio Short Term Lenders Bond for Me?

Of course! But first, you must authorize us to do so within the Nationwide Multistate Licensing System (NMLS). You can review the NMLS electronic surety bond filing information and look at the image below to see the process.

NMLS Bond Filing Process
Click to View Full

How to Cancel My Ohio Short Term Lender Bond? Will a Refund be Available?

Yes, Jet allows you to cancel your bond when it’s convenient for you. Send us an email at [email protected] when you’re ready to cancel and we will proceed with the request in the NMLS. 

The Division of Financial Institutions keeps the bond active for 30 days upon receipt of the notice of intent to cancel. During those 30 days, the liability is still present for both you and Jet, which must be calculated into any refunds. Jet will return any unused balance to you at that time.

Claims can be filed for two years after the termination date of the bond. You will not need to pay for the bond during this time, but it’s important to note that even though the surety bond is no longer active, you can still be liable for claims.

Does the Ohio Short Term Lender Bond Expire?

The Ohio Short Term Lender Bond lines up with the license which expires on December 31st. But don’t worry, Jet sends out an invoice before the expiration date so you can make a renewal payment to keep the bond active if you plan to keep your license. As long as Jet receives payment for the new bond term we will ensure your bond stays active.

Any changes to the bond must be done in the NMLS by Jet. Please let us know of any updates to the bond immediately, such as an increased or increased bond limit.

How Does a Short Term Lender Avoid Bond Claims?

Offering short-term loans while complying with the Short Term Loan Act (Ohio Revised Code Sections 1321.35 to 1321.48) and Chapter 1301:8-11 of the Ohio Administrative Code should help you avoid any bond claims. Even if you mistakenly violate the regulations, the DFI often allows you to remedy the situation before charging you with severe penalties.

Claims can occur for a variety of reasons, including:

Other prohibited acts can be found in Section 1321.45 of the Revised Code.

Aside from the Division of Financial Institutions, any aggrieved person(s) can file suit against you to recover damages. Civil fines, revocation of the license, and a bond claim are all possibilities when you violate the regulations.

What Happens if I Get an Ohio Short Term Lender Bond Claim?

Upon receiving notice of a claim, Jet will collect any details and documentation from you surrounding the dispute. Jet investigates to ensure no false claims slip through the cracks. 

If the claim is legitimate, Jet will remit payment to the claimant(s) and you are then responsible for paying Jet back. The reason you must reimburse Jet is that the surety bond is an extension of credit that only pays out for acts of fraud or negligence.

Ohio Short Term Lender 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: