Alabama § 5-26-14 - Surety Bond Required.
Full text of Alabama Code of Alabama § 5-26-14 — Surety Bond Required., with citation guidance and answers to common questions.
§ 5-26-14. Surety Bond Required.
(1) Coverage, form and regulations. Each mortgage loan originator shall be covered by a surety bond in accordance with this section. In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to the Alabama Consumer Credit Act or Mortgage Brokers Licensing Act, the surety bond of such person subject to the Alabama Consumer Credit Act or Mortgage Brokers Licensing Act can be used in lieu of the mortgage loan originator’s surety bond requirement.
(a) The surety bond shall provide coverage for each mortgage loan originator in an amount as prescribed in subsection (2).
(b) The surety bond shall be in a form as prescribed by the supervisor.
(c) The supervisor may promulgate rules or regulations with respect to the requirements for such surety bonds as are necessary to accomplish the purposes of this chapter.
(2) Penal sum of surety bond. The penal sum of the surety bond shall be maintained in an amount that reflects the dollar amount of loans originated as determined by the supervisor.
(3) Action on bond. When an action is commenced on a licensee’s bond the supervisor may require the filing of a new bond.
(4) New bond. Immediately upon recovery upon any action on the bond the licensee shall file a new bond.
Frequently Asked Questions About Alabama § 5-26-14
What does Code of Alabama § 5-26-14 cover?
Section 5-26-14 ("Surety Bond Required.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 5-26-14?
A common citation format is "Code of Alabama § 5-26-14" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 5-26-14 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.