Applicants must file a Maryland Debt Management Services Licensee Surety Bond form (Word) with the Commissioner of Financial Regulation. The amount of the surety bond
will not be less than $10,000 and not more than $1,000,000
as determined by the Commissioner. The factors used to
determine the amount of the surety bond are set forth
in
Md. Financial Institutions Code Ann., §12-914(b)(5).
The
"Potential Loss Range" is determined by dividing the amount of "Annual Volume of Maryland
Transactions" during the previous 12-month period by 24.
The applicant's name and address must appear on the surety bond and the bond should be "continuous until
cancelled."
The bond form that must be completed by the surety company is provided in the back of the application
package.
Note: This chart is a general guide for applicants to use when determining the bond amount. The
Commissioner may require a greater bond amount based on the financial condition and business experience of
the applicant or its agent; the potential loss to consumers who remit funds to the applicant or licensee if
the applicant or licensee becomes financially impaired; and any other factor the Commissioner considers
appropriate. However, in no event will the bond be more than $1,000,000. If the amount of the surety bond is
ever reduced by a payment of a claim or judgment, the Commissioner may require that the licensee file a new
or additional surety bond in an amount set by the Commissioner.
|
|
Annual Volume of Maryland Transactions |
Potential Loss Range |
Required Bond Amount
|
|
|
|
Less than $240,000
|
$0 to $10,000
|
$10,000
|
$240,001 to $600,000
|
$10,001 to $25,000
|
$25,000
|
$600,001 to $1.2 million
|
$25,001 to $50,000
|
$50,000
|
$1.2 million to $1.8 million
|
$50,001 to $75,000
|
$75,000
|
$1.8 million to $2.4 million
|
$75,001 to $100,000
|
$100,000
|
$2.4 million to $4.8 million
|
$100,001 to $200,000
|
$200,000
|
$4.8 million to $9.6 million
|
$200,001 to $400,000
|
$400,000
|
$9.6 million to $14.4 million
|
$400,001 to $600,000
|
$600,000
|
$14.4 million to $19.2 million
|
$600,001 to $800,000
|
$800,000
|
More than $19.2 million
|
More than $800,000
|
$1,000,000
|
|
|
|
|