6.1-431.4 - (Repealed effective October 1, 2010) Bond required.
§ 6.1-431.4. (Repealed effective October 1, 2010) Bond required.
A. The application for a license shall be accompanied by a bond to be filedwith the Commission with corporate surety authorized to execute such bond inthe Commonwealth, the form of which shall be approved by the Commission.
1. If the applicant is not an employee or exclusive agent of a personlicensed or exempt from licensing under Chapter 16 (§ 6.1-408 et seq.), thebond shall be an individual surety bond for the applicant; or
2. If the applicant is an employee or exclusive agent of a person licensed orexempt from licensing under Chapter 16, such bond shall be a surety bondfiled by such person covering all such employees and exclusive agents holdingor applying for a license as a mortgage loan originator.
B. The amount of the bond shall be $25,000, or such greater sum as theCommission may require based on the total dollar amount of residentialmortgage loans originated in the preceding calendar year by (i) theapplicant, in the case of the bond referred to in subdivision A 1 or (ii) theperson licensed or exempt from licensing under Chapter 16 (§ 6.1-408 etseq.), in the case of the bond referred to in subdivision A 2. A bond alreadyfiled with the Commission pursuant to § 6.1-413 may be applied toward theminimum bond required by this section, subject to approval by the Commission.In the case of the bond referred to in subdivision A 2, it shall be theresponsibility of the person licensed or exempt from licensing under Chapter16 (§ 6.1-408 et seq.) to provide information, in a form satisfactory to theCommission, sufficient for determining and verifying the total dollar amountof residential mortgage loans originated in the preceding calendar year.
C. Such bond shall be continuously maintained thereafter in full force.
D. Such bond shall be conditioned upon the licensee (i) performing allwritten agreements with borrowers or prospective borrowers; (ii) correctlyand accurately accounting for all funds received by him in the course of hisbusiness activities as a licensee; and (iii) conducting himself in conformitywith this chapter and all applicable laws and regulations.
E. Any person who may be damaged by noncompliance of a licensee with anycondition of such bond may proceed on such bond against the principal orsurety thereon, or both, to recover damages. The aggregate liability underthe bond shall not exceed the penal sum of the bond.
(2009, cc. 273, 453.)