                                 CODE OF VIRGINIA

(EFFECTIVE JULY 1, 2026) SURETY BOND (§ 6.2-1951)

A. An applicant for a money transmission license shall provide, and a licensee
at all times shall maintain, security consisting of a surety bond, in a form
satisfactory to the Commission, or, with the Commission&#8217;s approval, a
deposit instead of a bond in accordance with this section.

B. The minimum amount of the required security shall be:

   1. The greater of $100,000 or an amount equal to 100 percent of the
   applicant&#8217;s or licensee&#8217;s average daily money transmission
   liability in the Commonwealth calculated for the most recent quarter, up to a
   maximum of $1 million; or

   2. $100,000 in the event that the applicant&#8217;s or licensee&#8217;s
   tangible net worth exceeds 10 percent of total assets.

C. An applicant or licensee that maintains a bond of $1 million pursuant to
subdivision B 1 or $100,000 pursuant to subdivision B 2 shall not be required to
calculate its average daily money transmission liability in the Commonwealth for
purposes of this section.

D. An applicant or licensee may exceed the required security amount, including
pursuant to subdivision A 5 of &#xA7; 6.2-1953.

E. The security device required by this section shall remain in place for five
years after a licensee ceases money transmission activities. The Commission may
permit the security device to be reduced or eliminated prior to that time to the
extent the amount of such licensee&#8217;s outstanding money transmission
transactions are reduced. The Commission may also permit any licensee to
substitute a letter of credit, or such other form of security device as may be
acceptable to the Commission, for the security device in place at the time the
licensee ceases money transmission activities.

F. A surety bond shall remain effective until cancellation, which may occur only
after 90 days&#8217; written notice to the Commission. Cancellation does not
affect the rights of any claimant for any liability incurred or accrued during
the period for which the bond was in force.

HISTORY: 2025, c. 214.