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North Dakota ups bond amount for money brokers

North Dakota passed changes March 14 to its code regarding surety bond requirements for money brokers under the Money Brokers Act. The law requires a surety bond of not less than $25,000, but effective Aug. 1, the new minimum will be $50,000. The rest of Code Section 13-04.1-04.1 will remain the same: Each licensee shall

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How do I get a surety bond?

A surety carrier guarantees your surety bond, but most surety carriers use surety bond brokers to deal directly with the companies and people who need bonds. Surety bond brokers must be licensed by the state and appointed by the surety carrier in order to provide your bond. Some brokers are independent and represent multiple carriers.

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Who is the Surety Bond Principal?

A surety bond is a 3-party contract between the principal, obligee and surety carrier. The principal is who’s being required by the obligee to post the surety bond. The obligee requires the surety bond to transfer the risk of the principal’s performance from the obligee to the surety carrier. If the principal does what they

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What is Surety Bond Underwriting?

Surety bond underwriting is the pre-approval evaluation by the surety of both the bond performance requirements determined by the obligee and the principal’s current financial situation to assess the risk related to the performance criteria and the principal’s ability to reimburse the surety should a claim occur. Bonds are financial guarantees of the principal’s performance to established criteria by the obligee.

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What is a Surety Bond (and what it’s not)?

Let’s say a school would like to do business with John’s Construction Company to build a new gymnasium. If only there was a way to guarantee the company will do the work they said they would do for the school. This is where surety bonds come in. A surety bond is a financial guarantee of

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How much do Surety Bonds cost?

Since there are thousands of different bond types and varied financial conditions of the principals that need bonds, there is a wide range of premium rates. So it’s understandable that the cost of your specific bond need depends on several factors. In general, surety bond premiums run 2-4% of the bond amount. This means in

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