New Hampshire § 399-G-27 - Section 399-G:27 Prudential Standards; Surety Bond.

§ 399-G-27. Section 399-G:27 Prudential Standards; Surety Bond.

I. An applicant for a money transmission license must provide, and a licensee at all times must maintain, security consisting of a surety bond in a form satisfactory to the commissioner or, with the commissioner's approval, a deposit instead of a bond in accordance with this section. II. The amount of the required security shall be the greater of $100,000 or an amount equal to 100 percent of the licensee's average daily money transmission liability in this state calculated for the most recently completed 3-month period, up to a maximum of $500,000. III. A licensee that maintains a bond in the maximum amount provided for in paragraph I shall not be required to calculate its average daily money transmission liability in this state for purposes of this section. IV. A licensee may exceed the maximum required bond amount pursuant to RSA 399-G:29, I(e). V. The surety bond shall be payable to the state of New Hampshire and the bank commissioner of the state of New Hampshire for the benefit of any person who is damaged by a violation of this chapter and shall be conditioned upon the licensee's compliance with each provision of this chapter. VI. Surety bonds shall include a provision requiring the surety to give written notice to the commissioner 30 days in advance of the cancellation or termination of the bond. VII. Every bond shall provide that no recovery may be made against the bond unless the state makes a claim for recovery or the person brings suit naming the principal within 6 years after the act upon which the recovery or suit is based. The obligations of the surety shall survive the bankruptcy, insolvency, liquidation, or reorganization of the licensee, including, without limitation, any bankruptcy, insolvency, liquidation, or reorganization commenced by or against the licensee under any applicable state or federal law, including the United States Bankruptcy Code. VIII. When an action is commenced on a licensee's bond, the licensee shall immediately file a new bond. Immediately upon recovery upon any action on the bond, the licensee shall file a new bond.