Michigan Money Transmitter Bond
AmeriPro Surety Bonds | 844-589-9732
Money Transmitters – Michigan
Money transmitters in Michigan are regulated by the state’s Office of Financial and Insurance Services.
As a prerequisite for licensing, including meeting certain net worth thresholds, at least one surety bond and possibly more, is required.
AmeriPro Surety Bonds provides this surety bond as both a new (first time) and renewal bond.
Once the bond is purchased, it is furnished to the state by means of electronic filing.
Michigan Money Transmitter Bond: Amount of Surety Bond Required
The amount of Michigan money transmitter surety bond that you will be required to furnish is determined as follows.
- If you have one location and no delegates, you will need a single $500,000 surety bond;
- Each additional location or each delegate will require an extra $10,000 surety bond;
- Regardless of delegates and/or the number of locations, the Michigan money transmitter bond will cap at a maximum of $1,500,000 surety bond.
Michigan Money Transmitter Bond: The Premium and Bond’s Duration
The premium for the Michigan money transmitter bond will be determined by several variables.
These include the amount of the surety bond that you are required to purchase; information provided on a very detailed application (due to the bond’s large size); at what time of the year the bond is purchased; and your credit score.
Because so many variables go into determining the bond’s premium amount, it is not possible to state what you will pay.
As a broad general rule, a $500,000 surety bond may cost about 2% annually; however, again, we stress that this is for illustration purposes, only.
Once issued, the bond will have an expiration date of December 31st of the year in which the bond is issued.
Bonds purchased and which will not be active for a full year may be prorated in terms of premium due.
The Purpose of this Surety Bond
The purpose of the Michigan money transmitter bond is to serve as a financial guarantee that you as a money transmitter, will be in compliance with all rules and statutes in your professional conduct.
The bond is payable to Michigan’s state commissioner for the benefit of the people of the state of Michigan who are in some real way harmed by the failure of a licensed money transmitter to comply with regulatory statutes, and which, in turn, causes some financial harm.
The bond’s protections for the people of Michigan extends also to any employees, agents, or managers, who work for your company and whose malfeasance causes harm.
AmeriPro Surety Bonds is a surety-bonds only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout Michigan.
Our agency also provides surety bonds nationwide.
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