Georgia Consumer Loan Broker Bond
What is a Georgia Consumer Loan Broker Bond?
The Georgia Department of Banking and Finance requires surety bonds for those licensed to engage in businesses defined under the Georgia Residential Mortgage Act (GRMA), Article 13 of Chapter 1 of Title 7 of the Official Code of Georgia Annotated, as amended.
Why is a Georgia Consumer Loan Broker Bond Required?
The bond is conditioned of upon the principal obligor's compliance with the provisions of the Georgia Residential Mortgage Act, all regulations duly promulgated thereunder, and all other laws applicable to the conduct of its business. The licensee shall pay any and all monies that may become due and owing to the State of Georgia which shall include, but not be limited to monies owed for fees, fines or penalties under and by virtue of the provisions of the GRMA or the Rules of the Department of Banking and Finance, and shall pay any and all monies that may become due and owing any person due to the violation of any such laws and regulations by the principal through its own acts or the acts of any agent of the principal. All of the proceeds under this bond are to be made available to claimants or to the Department for fees, fines or penalties due.