What Changed for Alabama Money Transmitters?
A new bill was enacted in June of 2017 that requires money transmitters to get a larger surety bond.
The bill labeled HB 215 replaces the prior law concerning the sale of checks with provisions concerning money transmitters. Previously, the surety bond or other security required for selling checks had to be for $10,000, plus $5,000 per location. The maximum bond amount was $50,000. The new law provides that for money transmitters, the minimum bond amount is $100,000, or the average daily outstanding obligations for money received for transmission in Alabama plus 50% of the average daily outstanding payment instrument and stored value obligations in Alabama, whichever is greater. The bond amount required will be determined by regulation. The bond amount can be increased up to $5 million based on the licensee’s financial condition. Surety bonds or other security will be accepted to meet the requirement. The new law provides for direct actions on the bond and a minimum five year tail for claims.
Why Choose JW Surety Bonds?
We are the nation’s largest volume bond producer, and provide the lowest rates in the industry. It’s also crucial that you understand that you’re responsible to pay any claims filed on your bond. When you partner with our company, you will have a dedicated claim specialist assigned to your account to ensure claim payouts are either reduced or avoided all together.
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If you’re ready to get a surety bond for this newly increased bond requirement, you can simply apply online.