Payday lenders, deferred deposit companies, and check cashers companies are all required to be bonded in an amount that is determined by the number of their business locations in Kentucky. The bond can also be referred to as a Kentucky deferred deposit bond.
The bond form used for all 3 types of companies is the same. The requirement for a surety bond is to meet the requirement of the Kentucky Office of Financial Institutions as a prerequisite for licensing.
According to the Kentucky Revised Statutes, 286.9-040, the amount of surety required is as follows:
For applicants who require a $50,000 Kentucky check casher bond / deferred deposit bond: After completion of a surety bond application, and payment of the premium 1.5%, of $750, the bond is issued to you immediately. There is neither an underwriter review nor a credit check for the $50,000 surety bond.
In other words, ll applicants are approved for the $50,000 surety bond amount.
For amounts greater than $50,000, there is the same standard surety bond application, along with the additional requirement of a credit check. If you are approved for this bond, the premium will be 1.5% of the bond’s amount.
Once the bond has been approved, and the premium paid, the bond is issued immediately. A copy of the bond can be emailed to you; however, the original copy, which you will sign as Principal, is ideally the bond you should file.
The Kentucky check casher / deferred deposit bond is issued for a standard one year term.
Our agency offers you the ability to prepay the bond – for all surety bond amounts – for 2 or 3 years. Prepayment of the premium increases the time between bond renewals.
And, just as importantly, prepayment of the premium also gives you a savings over year to renewal of the bond and the premium. Please call our agency for more details.
The surety bond’s requirement is a financial guarantee which ensures your compliance with Kentucky Revised Statutes Chapter 286.9, and payment of any judgments which may be rendered against your business in a court of law.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout Kentucky. Our agency also provides surety bonds nationwide.
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