California Money Transmitter Bonds
What is a California Money Transmitter Bond?
A surety bond must be furnished by those applying for a license to conduct the business of money transmission as described in Division 1.2 (The Money Transmission Act) of the California Financial Code. Pursuant to Section 2037 of the Financial Code, the licensee, must deliver a surety bond or deposit of cash or securities in order to secure faithful performance of the obligations of the licensee with respect to money transmissions in California and any obligations arising from Financial Code Section 2000 et seq. This money transmitter surety bond shall runs continuously, remaining in full force through subsequent licensing periods until cancelled by the surety company in accordance with the provisions of Sections 996.310 et. seq. of the Code of Civil Procedure.