(a) $10,000 bond.

1. (1) Each application must be accompanied by a surety bond acceptable to the Securities Commissioner in the amount of ten thousand dollars ($10,000).

2. (2) After the initial calendar year of licensure, a licensee shall maintain a surety bond of:

   1. (A) Ten thousand dollars ($10,000) if the licensee’s annualized money transmissions in Arkansas are not more than five hundred thousand dollars ($500,000);
   2. (B) Fifty thousand dollars ($50,000) if the licensee’s annualized money transmissions in Arkansas are greater than five hundred thousand dollars ($500,000) but not more than five million dollars ($5,000,000);
   3. (C) One hundred thousand dollars ($100,000) if the licensee’s annualized money transmissions in Arkansas are greater than five million dollars ($5,000,000) but not more than twenty-five million dollars ($25,000,000);
   4. (D) Two hundred thousand dollars ($200,000) if the licensee’s annualized money transmissions in Arkansas are greater than twenty-five million dollars ($25,000,000) but not more than seventy-five million dollars ($75,000,000); or
   5. (E) Three hundred thousand dollars ($300,000) if the licensee’s annualized money transmissions in Arkansas are greater than seventy-five million dollars ($75,000,000).
3. (3) “Annualized money transmission” means the money transmission, payment instrument, and stored value dollar volume in Arkansas during the prior calendar year.

4. (4)

   1. (A) If an increase in surety bond is required, the surety bond must be increased by March 31.
   2. (B) Failure to maintain the proper surety bond amount shall be grounds for discipline under the Uniform Money Services Act, Arkansas Code § 23-55-101 et seq.

(b)

1. (1) The commissioner may increase the amount of surety bond required, to a maximum of one million dollars ($1,000,000), if the financial condition of a money transmitter licensee so requires.

2. (2) The commissioner may consider, without limitation, the following criteria:

   1. (A) Significant reduction of net worth;
   2. (B) Financial losses;
   3. (C) Potential losses resulting from the Uniform Money Services Act or this part;
   4. (D) Licensee filing for bankruptcy;
   5. (E) The initiation of any proceedings against the licensee in any state or foreign country;
   6. (F) The filing of a state or federal criminal charge against the licensee, person in control, responsible individual, executive officer, board director, employee, authorized delegate or principal, based on conduct related to providing money services or money laundering;
   7. (G) A licensee, executive officer, board director, person in control, responsible individual, principal, or authorized delegate being convicted of a crime.
   8. (H) Any unsafe or unsound practice;
   9. (I) A judicial or administrative finding against a money transmitter licensee under the Uniform Money Services Act or an examination report finding that the money transmitter licensee engaged in an unfair or deceptive act or practice in the conduct of its business; and
   10. (J) Other events and circumstances that, in the judgment of the commissioner, impair the ability of the licensee to meet its obligations to its money services customers.