Credit Counseling, Debt Management and Debt Settlement State Statues

Yearly disbursements – Amount of bond
Less than $100,000 – not less than $5,000
$100,000 – $250,000 – $10,000
$250,001 – $500,000 – $15,000
$500,001 – $1,000,000 – $20,000
More than $1,000,000 – $25,000

(a) Instead of the surety bond required by §12-14.5-213, a provider may deliver to the administrator, in the amount required by §12-14.5-213 (b), and, except as otherwise provided in paragraph (2) of this subsection (a), payable or available to this state and to individuals who reside in this state when they agree to receive debt-management services from the provider, as their interests may appear, if the provider or its agent does not comply with this part 2: (1) Repealed. (2) With the approval of the administrator, an irrevocable letter of credit, issued or confirmed by a bank approved by the administrator, payable upon presentation of a certificate by the administrator stating that the provider or its agent has not complied with this part 2.

(b) If a provider furnishes a substitute pursuant to subsection (a) of this section, the provisions of §12-14.5-213 (a), (c), (d), and (e) apply to the substitute.

(2) If a licensee or applicant for renewal of a license establishes that such licensee or applicant is unable to comply with the bond required by subdivision (1) of this subsection, it shall file a bond for the highest principal amount it can obtain, provided such amount shall be a minimum of $40,000, and the licensee or applicant for renewal shall, in lieu of the balance of the required amount of the bond, deposit a sum equal to the amount of the bond required by subdivision (1) of this subsection, less the amount of the bond filed with the commissioner, in cash or cash equivalents, with such bank, out-of-state bank that has a branch in this state, Connecticut credit union or federal credit union as such applicant or licensee may designate and the commissioner may approve, and subject to such conditions as the commissioner deems necessary for the protection of consumers and in the public interest. No licensee or applicant shall make such deposit until the depository institution and the licensee or applicant executes a deposit agreement satisfactory to the commissioner. The deposit agreement shall pledge the amount deposited to the commissioner and provide that the depository institution shall not release any of the moneys pledged without the authorization of the commissioner. The amount deposited shall secure the same obligation as would a surety bond filed under this section and shall be held at such banks or credit unions to cover claims during the period the license remains in full force and effect and the succeeding two years after such license has been surrendered, revoked or suspended or has expired. The licensee or applicant may collect interest on such deposit in accordance with its deposit agreement. The deposits made pursuant to this section shall be deemed, by operation of law, to be held in trust for the benefit of any debtor, who may be damaged by failure of a licensee or applicant to perform any written agreements or by the wrongful conversion of funds paid to a licensee in the event of the bankruptcy of the licensee, and shall be immune from attachment by creditors or judgment creditors.

(4) In the case of a debt negotiation licensee engaging or offering to engage in the business of negotiating residential mortgage loans on behalf of mortgagors, such debt negotiation licensee shall file a bond in the penal sum amount set forth in subsection (f) of this section based on the aggregate dollar amount of the residential mortgage loans negotiated or offered to be negotiated by its sponsored mortgage loan originator licensees.

(e) The penal sum of the bond required by subdivision (4) of subsection (a) of this section shall be determined as follows: (1) An initial applicant for a debt negotiation license shall file a bond in a penal sum of $50,000. (2) A debt negotiation licensee sponsoring and bonding at least one mortgage loan originator as an exempt registrant under subdivision (2) of subsection (a) and subsection (c) of §36a-487, as amended by this act, shall file a bond with a penal sum in the following amount: (A) If the aggregate dollar amount of all residential mortgage loans negotiated or offered to be negotiated by all sponsored mortgage loan originators during the preceding 12-month period ending July 31st of the current year is less than $30 million, the penal sum of the bond shall be $50,000; (B) If the aggregate dollar amount of all residential mortgage loans negotiated or offered to be negotiated by all sponsored mortgage loan originators during the preceding 12-month period ending July 31st of the current year is $30 million or more but less than $50 million, the penal sum of the bond shall be $100,000; and (C) If the aggregate dollar amount of all residential mortgage loans negotiated or offered to be negotiated by all sponsored mortgage loan originators during the preceding twelve-month period ending July 31st of the current year is $50 million or more, the penal sum of the bond shall be $150,000.

(f) For purposes of subsection (e) of this section, the aggregate dollar amount of all residential mortgage loans negotiated or offered to be negotiated shall mean the aggregate underlying dollar amount of all residential mortgage loans for which a sponsored mortgage loan originator provides debt negotiation services.

(a) In lieu of requiring the filing of a surety bond, the attorney general may, at the attorney general’s discretion, accept from a licensed provider an irrevocable letter of credit. Such irrevocable letters of credit shall be provided by an insured depository institution (as defined in the Federal Deposit Insurance Act at 12 U.S.C. §1813(c)) acceptable to the attorney general, in a form satisfactory to the attorney general in the principal sum to be determined by the attorney general, except that the irrevocable letter of credit amount shall not be less than $50,000. In determining the amount of the irrevocable letter of credit required for a licensed provider, the attorney general shall consider, among other things:
(1) The dollar value of the licensed provider’s Delaware business;
(2) The dollar value of all trust accounts; and
(3) Such other and further criteria as the attorney general may deem necessary and appropriate.

Upon renewal of a license, the licensee shall supply the director with a statement of the moneys accepted, received or held for another in the licensee’s conduct of business authorized by this act. The amount of the bond upon renewal shall be in the amount of $15,000, or two times the average monthly amount over the preceding year of moneys accepted, received or held for another in the licensee’s conduct of business authorized by this act computed to the next highest $1,000, whichever sum is greater, up to a maximum of $100,000.

(b) The attorney general may waive the bonding requirement under subsection (a) and, instead of the bond, accept an irrevocable letter of credit for an equivalent amount issued in favor of the state for the benefit of a person that is damaged by a violation of this chapter. A credit services organization that obtains an irrevocable letter of credit under this subsection must file a copy of the irrevocable letter of credit with the attorney general before doing business in Indiana.

(b) A surety bond issued under this section must:
(1) be in a form prescribed by the director;
(2) be in effect during the term of the license issued under this chapter;
(3) remain in effect during the two years after the licensee ceases offering debt management services to individuals in Indiana;
(4) be payable to the department for the benefit of: (A) the state; and (B) individuals who reside in Indiana when they agree to receive debt management services from the licensee;
(5) be in an amount equal to: (A) $50,000, in the case of an initial surety bond issued under this section; or (B) the amount prescribed under subsection (d), beginning with the first renewal of a license under this chapter;
(6) be issued by a bonding, surety, or insurance company authorized to do business in Indiana and rated at least “A-” by at least one nationally recognized investment rating service; and
(7) have payment conditioned upon the licensee’s or any of the licensee’s employees’ or agents’ noncompliance with or violation of this chapter or other applicable federal or state laws or regulations.

(c) The director may adopt rules or guidance documents with respect to the requirements for a surety bond as necessary to accomplish the purposes of this chapter.

(d) Beginning with the first renewal of a license under this chapter, each year that a licensee continues to offer debt management services to individuals in Indiana, the licensee shall file a new or an additional surety bond in an amount that ensures that the licensee’s surety bond under this section is equal to the greater of the following: (1) $50,000; or (2) the average of the highest daily balance of funds held in trust for Indiana residents for each month during the licensee’s most recently concluded fiscal year, not to exceed $100,000.

A debt adjuster shall maintain a bond issued by a surety company admitted to do business in this Commonwealth. The bond shall be in the amount of $25,000 in favor of the attorney general for the benefit of the Commonwealth for any violation of this chapter or any person suffering injury or loss by reason of any violation of this chapter. A copy of the bond shall be filed with the attorney general.

The bond shall be in effect during the period of the debt adjuster’s registration as well as for two years after the debt adjuster ceases to provide debt-adjusting services to debtors.

2. Subject to adjustment of the dollar amount pursuant to subsection 6 of NRS 676A.730, a surety bond filed pursuant to subsection 1 must:
(a) Be in the amount of $50,000 or other larger amount that the commissioner determines is warranted by the financial condition and business experience of the provider, the history of the provider in performing debt-management services, the risk to individuals and any other factor the commissioner considers appropriate;
(b) Be issued by a bonding, surety or insurance company authorized to do business in this state and rated at least A by a nationally recognized rating organization; and
(c) Have payment conditioned upon noncompliance of the provider or its agent with this chapter.

1. Instead of the surety bond required by NRS 676A.390, a provider may deliver to the commissioner, in the amount required by subsection 2 of NRS 676A.390, and, except as otherwise provided in subparagraph (1) of paragraph (b), payable or available to this state and to individuals who reside in this state when they agree to receive debt-management services from the provider, as their interests may appear, if the provider or its agent does not comply with this chapter:
(a) A certificate of insurance issued by an insurance company authorized to do business in this state and rated at least A or equivalent by a nationally recognized rating organization, approved by the commissioner and with no deductible, or, if the provider supplies a bond in the amount of $5,000, a deductible not exceeding $5,000; or
(b) With the approval of the commissioner:
(1) An irrevocable letter of credit, issued or confirmed by a bank approved by the commissioner, payable upon presentation of a certificate by the commissioner stating that the provider or its agent has not complied with this chapter; or
(2) Bonds or other obligations of the United States or guaranteed by the United States or bonds or other obligations of this state or a political subdivision of this state, to be deposited and maintained with a bank approved by the commissioner for this purpose.

2. If a provider furnishes a substitute pursuant to subsection 1, the provisions of subsections 1, 3, 4 and 5 of NRS 676A.390 apply to the substitute.

(a) Instead of the surety bond required by §19-14.8-13, a provider may deliver to the director, in the amount required by § 19-14.8-13(b), and, except as otherwise provided in subparagraph (2)(A) below, payable or available to this state and to individuals who reside in this state when they agree to receive debt-management services from the provider, as their interests may appear, if the provider or its agent does not comply with this chapter:
(1) A certificate of insurance issued by an insurance company authorized to do business in this state and rated at least “A” by a nationally recognized rating organization, with no deductible; or
(2) With the approval of the director:
(A) An irrevocable letter of credit, issued or confirmed by a bank approved by the director, payable upon presentation of a certificate by the director stating that the provider or its agent has not complied with this chapter; or
(B) Bonds or other obligations of the United States or guaranteed by the United States or bonds or other obligations of this state or a political subdivision of this state, to be deposited and maintained with a bank approved by the director for this purpose.

(b) If a provider furnishes a substitute pursuant to subsection (a), the provisions of §19-14.8-13(a), (c), (d), and (e) apply to the substitute.

Subject to adjustment of the dollar amount pursuant to §47-18-5532(f), a surety bond filed pursuant to subsection (a) must: (1) Be in the amount of $50,000 or other larger or smaller amount that the administrator determines is warranted by the financial condition and business experience of the provider, the history of the provider in performing debt-management services, the risk to individuals and any other factor the administrator considers appropriate; (2) Be issued by a bonding, surety or insurance company authorized to do business in this state and rated at least “A” by a nationally recognized rating organization; and (3) Have payment conditioned upon noncompliance of the provider or its agent with this part.

(a) Instead of the surety bond required by §47-18-5513, a provider may deliver to the administrator, in the amount required by §47-18-5513(b), and, except as otherwise provided in subdivision (a)(2)(A), payable or available to this state and to individuals who reside in this state when they agree to receive debt-management services from the provider, as their interests may appear, if the provider or its agent does not comply with this part:
(1) A certificate of insurance:
(A) Issued by an insurance company authorized to do business in this state and rated at least “A” or equivalent by a nationally recognized rating organization approved by the administrator; and
(B) With no deductible, or if the provider supplies a bond in the amount of $5,000, a deductible not exceeding $5,000; or
(2) With the approval of the administrator:
(A) An irrevocable letter of credit, issued or confirmed by a bank approved by the administrator, payable upon presentation of a certificate by the administrator stating that the provider or its agent has not complied with this part; or
(B) Bonds or other obligations of the United States or guaranteed by the United States or bonds or other obligations of this state or a political subdivision of this state, to be deposited and maintained with a bank approved by the administrator for this purpose.

(b) If a provider furnishes a substitute pursuant to subsection (a), then §47-18-5513(a), (c), (d) and (e) apply to the substitute..

Instead of the surety bond required by §13-42-113, a provider may deliver to the administrator, in the amount required by §13-42-113(2), and, except as otherwise provided in Subsection (1)(c)(i), payable or available to this state and to individuals who reside in this state when they agree to receive debt-management services from the provider, as their interests may appear, if the provider or its agent does not comply with this chapter:
(a) a certificate of insurance: (i) issued by an insurance company authorized to do business in this state and rated at least A or equivalent by a nationally recognized rating organization approved by the administrator; and (ii) with no deductible, or if the provider supplies a bond in the amount of $5,000, a deductible not exceeding $5,000;
(b) a certificate of deposit issued or confirmed by a bank approved by the administrator, payable upon presentation of a certificate by the administrator stating that the provider or its agent has not complied with this chapter; or
(c) with the approval of the administrator: (i) an irrevocable letter of credit, issued or confirmed by a bank approved by the administrator, payable upon presentation of a certificate by the administrator stating that the provider or its agent has not complied with this chapter; or (ii) bonds or other obligations of the United States or guaranteed by the United States or bonds or other obligations of this state or a political subdivision of this state, to be deposited and maintained with a bank approved by the administrator for this purpose.