Section 750IAC9-3-7. Surety bond

   (a) Each creditor and mortgage loan originator must be covered by a surety bond in accordance with this section. If a mortgage loan originator is an employee or exclusive agent of:

(1) a person subject to licensing under IC 24-4.4 or IC 24-4.5; or

(2) an entity exempt from licensing under IC 24-4.4 or IC 24-4.5 that registers with the NMLSR;

the surety bond of the person subject to licensing under IC 24-4.4 or IC 24-4.5 or entity exempt from licensing under IC 24-4.4 or IC 24-4.5 that registers with the NMLSR may be used instead of the mortgage loan originator's surety bond requirement under this section.

  (b) A surety bond:

(1) must provide coverage for each mortgage loan originator in an amount prescribed in subsection (d); and

(2) must be in a form prescribed by the director.

  (c) The director may adopt guidance with respect to the requirements for a surety bond as are necessary to accomplish the purposes of this article.

  (d) The penal sum of the surety bond shall be maintained in an amount that reflects the dollar amount of mortgage transactions originated as determined by the director.

  (e) If an action is commenced on the surety bond of a:

(1) licensee; or

(2) person subject to or an entity exempt from licensing under IC 24-4.4 or IC 24-4.5 as described under subsection (a);

the director may require the filing of a new bond.

  (f) A:

(1) licensee; or

(2) person subject to or an entity exempt from licensing under IC 24-4.4 or IC 24-4.5 as described under subsection (a);

shall file a new surety bond immediately upon recovery of any action on the surety bond required under this section. (Department of Financial Institutions; 750 IAC 9-3-7; emergency rule filed Jul 23, 2009, 4:14 p.m.: 20090729-IR-750090577ERA; readopted filed Dec 1, 2015, 9:28 a.m.: 20151230-IR-750150336RFA)