1. (a) All surety bonds, amendments, cancellations, notices of claims, and information related to surety bonds, shall be filed with, and processed through, NMLS.

2. (b) The surety bond shall be in the form of the “electronic surety bond form,” titled “SURETY BOND, STUDENT LOAN SERVICING ACT LICENSEE BOND” (California Financial Code Section 28100, et seq.), ESB Form Version 3, NMLS Version: Effective December 29, 2020, incorporated herein by reference.

   1. (2) A licensee will be required to post a surety bond in an amount greater than $25,000, if the dollar amount of student loans serviced by the licensee in the preceding calendar year exceeds $50,000,000. The specific amount of the required bond is as follows:

      Aggregate Loans

      Bond Amount

      0 - $50,000,000

      $ 25,000

      $50,000,001 - $100,000,000

      $ 50,000

      $100,000,001 - $250,000,000

      $ 75,000

      Over $250,000,000

      $ 100,000

   (c)(1) Every licensee shall post and maintain a surety bond, in accordance with Section 28142 of the Code, in the minimum amount of $25,000.

3. (d) The surety bond shall not be cancelled, in whole or in part, without at least 30 days notice to the Commissioner by the surety, bonding, or insurance company.
4. (e) The surety bond shall also provide that the surety, bonding, or insurance company issuing the bond provide notice to the Commissioner within 10 days of service of any action against the bond, and, immediately, upon payment of any claims.

Note: Authority cited: Section 28106, Financial Code. Reference: Sections 28110 and 28142, Financial Code.

History

1. New article 3 (section 2039) and section filed 3-28-2019; operative 3-28-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13).

2. Change without regulatory effect amending subsection (b) filed 5-3-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 19).