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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
The $1,000,000 Connecticut money transmission bond belongs to the busiest licensees. It applies once average weekly Connecticut transmissions top $500,000 over the twelve months ending June 30. Every applicant starts on the $300,000 tier, so this is usually the bond you move up to, filed as an electronic bond in NMLS with the Banking Commissioner as obligee.
Connecticut General Statutes 36a-602 requires a money transmission licensee to keep a surety bond in favor of the Banking Commissioner, sized by average weekly money transmissions in Connecticut over the most recent twelve-month period ending June 30. The $1,000,000 bond applies when that average exceeds $500,000. The bond must be on a form approved by the Attorney General, issued by a company authorized in Connecticut, and filed electronically through NMLS.
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Section 36a-602(a) sets three amounts for transmission that does not involve virtual currency. A bond of $300,000 applies to every applicant and to any licensee whose average weekly money transmissions in Connecticut were less than $300,000 for the most recent twelve-month period ending June 30. A bond of $500,000 applies to a licensee averaging $300,000 or more but not more than $500,000 a week. The $1,000,000 bond on this page applies to a licensee averaging more than $500,000 a week over that same period. Only Connecticut transmissions count toward the average.
For a licensee transmitting virtual currency, the statute leaves the amount to the Commissioner, calculated reasonably to address the current and prospective volatility of the market.
The bond runs in favor of the Commissioner and is conditioned on the licensee's faithful performance of all obligations in its Connecticut money transmission business. By statute the proceeds are held in trust for the benefit of claimants and are immune from attachment by creditors or judgment creditors. Under subsection (d), a licensee may deposit cash or qualifying government obligations in place of all or part of the bond.
The Department of Banking requires money transmitters to file electronic surety bonds through NMLS, on the form listed under the Connecticut State Licensing Requirements on the NMLS Resource Center. A surety that wants to cancel must give the licensee and the Commissioner at least thirty days written notice through the system.
Under section 36a-599 the license fee is $1,875 and the renewal fee is $1,125. A license expires at the close of business on December 31 of the year it was approved, except that a license approved on or after November 1 runs to December 31 of the following year. Renewal applications are filed between November 1 and December 31. Section 36a-604 separately requires a money transmission licensee to keep a tangible net worth of at least $500,000, and annual financial reports are due on or before April 30.
Section 36a-602(a) sets $300,000 for any applicant. The $1,000,000 amount applies to a licensee whose average weekly Connecticut transmissions exceeded $500,000 for the most recent twelve-month period ending June 30.
No. The statute measures the average weekly amount of money transmissions in this state, meaning Connecticut only.
Yes. Section 36a-602(d) lets a licensee deposit dollars or interest bearing obligations issued or guaranteed by the United States or any state in place of all or part of the bond. The deposit is held in trust the same way bond proceeds are.
Section 36a-609 exempts federally insured banks and credit unions, Connecticut innovation banks, the United States Postal Service and its money transmission contractors, and a person whose only activity is electronic transfer of government benefits on behalf of a government agency.
The surety must give the licensee and the Commissioner at least thirty days written notice through NMLS. A replacement bond needs to be in place before the cancellation date to keep the license.
The surety prices it after reviewing the company's financial statements, ownership and credit. The penal sum stays at $1,000,000 regardless of the premium.
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