                                 CODE OF VIRGINIA

BOND REQUIRED (§ 6.2-1703)

A. The application for a license shall be accompanied by a bond to be filed with
the Commission with corporate surety authorized to execute such bond in the
Commonwealth, the form of which shall be approved by the Commission.

   1. If the applicant is not an employee or exclusive agent of a person licensed
   or exempt from licensing under Chapter 16 (&#xA7; 6.2-1600 et seq.), the bond
   shall be an individual surety bond for the applicant; or

   2. If the applicant is an employee or exclusive agent of a person licensed or
   exempt from licensing under Chapter 16 (&#xA7; 6.2-1600 et seq.), the bond
   shall be a surety bond filed by such person covering all such employees and
   exclusive agents holding or applying for a license as a mortgage loan
   originator.

B. The amount of the bond shall be $25,000, or such greater sum as the
Commission may require based on the total dollar amount of residential mortgage
loans originated in the preceding calendar year by (i) the applicant, in the
case of the bond referred to in subdivision A 1 or (ii) the person licensed or
exempt from licensing under Chapter 16 (&#xA7; 6.2-1600 et seq.), in the case of
the bond referred to in subdivision A 2. A bond already filed with the
Commission pursuant to &#xA7; 6.2-1604 may be applied toward the minimum bond
required by this section, subject to approval by the Commission. In the case of
the bond referred to in subdivision A 2, it shall be the responsibility of the
person licensed or exempt from licensing under Chapter 16 (&#xA7; 6.2-1600 et
seq.) to provide information, in a form satisfactory to the Commission,
sufficient for determining and verifying the total dollar amount of residential
mortgage loans originated in the preceding calendar year.

C. Such bond shall be continuously maintained thereafter in full force.

D. Such bond shall be conditioned upon the licensee: (i) performing all written
agreements with borrowers or prospective borrowers; (ii) correctly and
accurately accounting for all funds received by him in the course of his
business activities as a licensee; and (iii) conducting himself in conformity
with this chapter and all applicable laws and regulations.

E. Any person who may be damaged by noncompliance of a licensee with any
condition of such bond may proceed on such bond against the principal or surety
thereon, or both, to recover damages. The aggregate liability under the bond
shall not exceed the penal sum of the bond.

HISTORY: 2009, cc. 273, 453, § 6.1-431.4; 2010, c. 794.