§ 19-14.10-14 - Surety bond required.
SECTION 19-14.10-14
§ 19-14.10-14 Surety bond required. –(a) Each mortgage loan originator shall be covered by a surety bond inaccordance with this section. In the event that the mortgage loan originator isan employee of a lender or loan broker licensed under chapter 19-14, the suretybond of such lender or loan broker as required in accordance with theprovisions of such chapter and adjusted by the amounts required by this sectioncan be used in lieu of the mortgage loan originator's surety bond requirement.
(1) The surety bond shall provide coverage for each mortgageloan originator in an amount as prescribed in subsection (b) of this section.
(2) The surety bond shall be in a form as prescribed by thedirector or the director's designee.
(3) The director or the director's designee may promulgaterules or regulations with respect to the requirements for such surety bonds asare necessary to accomplish the purposes of this chapter.
(b) The penal sum of the surety bond shall be maintained inan amount that reflects the dollar amount of loans originated as determined bythe director or the director's designee by regulation adopted within onehundred twenty (120) days of the effective date of this section.
(c) When an action is commenced on a licensee's bond thedirector or the director's designee may require the filing of a new bond.
(d) Immediately upon recovery upon any action on the bond thelicensee shall file a new bond.
(e) A minimum net worth shall be continuously maintained formortgage loan originators in accordance with this section. In the event thatthe mortgage loan originator is an employee, a lender or loan broker licensedunder chapter 19-14, the net worth can be used in lieu of the mortgage loanoriginator's minimum net worth requirement.
In addition:
(1) Minimum net worth shall be maintained in an amount thatreflects the dollar amount of loans originated as determined by the director orthe director's designee.
(2) The director or the director's designee shall within onehundred twenty (120) days of the effective date of this section promulgaterules or regulations with respect to the requirements for minimum net worth asare necessary to accomplish the purposes of this chapter.