Industrial Loan and Thrift Company ($200,000) - NMLS Bond - Statewide in Tennessee

Brief Summary

The $200,000 bond is the figure Tennessee sets for an industrial loan and thrift registrant that makes residential mortgage loans, for its initial registration period. One bond covers every office you register, and it is filed through NMLS with your certificate of registration application to the Department of Financial Institutions.

Tennessee Code Annotated 45-5-202(c) requires an industrial loan and thrift applicant that makes or proposes to make residential mortgage loans to file a surety bond payable to the state, in a form approved by the commissioner, in the amount of $200,000 for the initial registration period. After that the amount reflects the dollar volume of residential mortgage loans the registrant originates, as determined by the commissioner. Applicants that do not make residential mortgage loans file a $50,000 bond or letter of credit instead.

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How to Apply for a Industrial Loan and Thrift Company ($200,000) - NMLS Bond:

• Confirm whether you make or propose to make residential mortgage loans. That decides between the $200,000 and $50,000 bond.
• Submit the certificate of registration application for each office through NMLS.
• Have the surety file one bond for the registrant, payable to the State of Tennessee.
• Show net worth or stated capital and surplus of at least $25,000 for each office.
• Renew between November 1 and December 31 each year and include evidence the bond was adjusted for your origination volume.

Detailed Information About the Tennessee Industrial Loan and Thrift Company ($200,000) - NMLS Bond:

The $200,000 is a starting figure

Tennessee Code Annotated 45-5-202(c) sets the bond at $200,000 for the initial registration period of an applicant that makes or proposes to make residential mortgage loans. After that first period, the bond must provide coverage for each mortgage loan originator in an amount that reflects the dollar amount of residential mortgage loans the registrant originated, as determined by the commissioner. Under 45-5-203, each renewal application from a registrant making residential mortgage loans must include evidence that its surety bond has been adjusted under 45-5-202(c).

Not making mortgage loans

All other applicants file a surety bond payable to the state or a letter of credit in the amount of $50,000 under 45-5-202(d).

One bond, every office

Section 45-5-103 requires a separate certificate of registration for each office or place of business, but 45-5-202(c) states that only one bond is required for the registrant regardless of the number of offices. Separately, 45-5-201 requires a net worth, or for corporations total stated capital and surplus, of at least $25,000 for each office or certificate.

What the bond covers and how long it lasts

The bond is payable to the State of Tennessee for the benefit of any person injured by the wrongful act, default, fraud or misrepresentation of the registrant. The registrant must keep it in place for not less than 24 months after the certificate of registration expires or is revoked, suspended or surrendered.

Who is exempt

Under 45-5-104, the chapter does not apply to state or national banks other than industrial banks, state or federal savings and loan associations, state or federal credit unions, insurance companies, or licensed pawnbrokers.

Filing and renewal

Registrations, amendments and renewals are filed through NMLS. A certificate of registration expires December 31, and the renewal application and supervision fee under 45-1-118(i) are due on or before December 31, but no earlier than November 1, each year. Confirm the current bond amount for your origination volume with the Department of Financial Institutions before each renewal bond is issued.

Eligibility and Requirements for a Tennessee Industrial Loan and Thrift Company ($200,000) - NMLS Bond:

• $200,000 bond for the initial registration period if you make residential mortgage loans.
• After the initial period, a bond amount reflecting your residential mortgage loan volume as set by the commissioner.
• $50,000 bond or letter of credit for applicants that do not make residential mortgage loans.
• Bond in a form approved by the commissioner.
• Bond kept in force for at least 24 months after the registration ends.

Tennessee Industrial Loan and Thrift Company ($200,000) - NMLS Bond FAQs:

Official and Additional Resources for the Tennessee Industrial Loan and Thrift Company ($200,000) - NMLS Bond: