The New York traveler's checks bond is a $750,000 surety bond required the NY Superintendent of Financial Services as a condition of licensing. The bond is available through AmeriPro Surety Bonds: 844-589-9732.
Section 643 of the New York Consolidated Banking Laws requires that companies who wish to offer traveler’s check must first obtain a $750,000 surety bond as a prerequisite for licensing.
More precisely, the law actually states that the surety bond required shall not be less than $750,000.
The State of New York, Superintendent of Financial Services is the obligee, that is, they are the NY state agency or department requiring the surety bond.
The $750,000 New York traveler’s checks bond is one of the larger surety bond amounts required for licensing in the state.
That is because the bond serves as a financial guarantee that issuers and providers of traveler’s checks will abide by all rules, statutes, federal and state regulations which govern dealing with traveler’s checks.
Moreover, the bond also acts as a financial guarantee that protects the public --- your customers --- from acts of fraud, theft, criminal misconduct or malfeasance as it relates to owners, managers, agents, or employees of a business which provides traveler’s checks to the public.
The bond’s existence allows those members of the public who can demonstrate a financial harm to recoup their losses up to the aggregate amount of the surety bond (not, for instance, per person).
Due to the large dollar amount of the New York traveler’s checks bond, a very detailed application, along with a credit check, will be required before the bond can be issued.
As you might expect, the process for obtaining this bond will be slightly longer than it might otherwise be if the bond were much smaller.
Applicants will be expected to provide information regarding the following as part of the bonding process:
The premium is the price that you will be required to pay for this traveler’s check surety bond’s issuance.
The premium, fortunately, will be a small percentage of the bond’s $750,000 face amount.
The determining factors will involve the information gathered from you in the application process and the credit score.
Once the first premium payment has been made and the bond issued, the surety bond renews on an annual basis.
Well ahead of renewal time, you will receive a notice a billing notice in the mail.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court and fiduciary surety bonds throughout New York State.
Our goal for you as an applicant of the New York traveler’s check bond is to make the bonding process as easy and as efficient as possible.
We encourage communication; we are always glad to answer your questions; and we are here to help you get bonded at the best price available.
