Money lending company bond cost
The South Dakota Division of Banking requires money lending companies to post $10,000 surety bonds for the first license and $2,500 surety bonds for each additional license.
These bonds are subject to underwriting consideration, so the price you’ll pay depends on a review of your personal credit report. The best way to find out exactly how much you’ll pay for your surety bond is to request your free surety bond quote now!
Why this bond
By posting a South Dakota money lender bond, principals (money lenders) pledge to conduct business in accordance with the provisions of SDCL 54-4. Violations of the bond agreement include:
- harassing or abusing customers
- making false or misleading representations
- engaging in unfair lending practices or activities
- performing acts of omission or commission that are breaches of trust
- and more
These bonds protect the state or any person who suffers loss or damages as a result of the principal’s unlawful business practices up to the full amount of the bond. The principal must reimburse the surety in a timely manner for all damages paid out.
Money lending bond details
Money lender bonds in South Dakota can be canceled by the surety if the surety files written notice with the Division of Banking at least 30 days prior to the effective termination date.
These bonds become effective on the date indicated on the bond form and remain in full force and effect until terminated or canceled.
Become a money lender
Each money lender location must be separately licensed. All licenses expire on June 30 of each year, and the renewal application must be filed with the South Dakota Department of Labor and Regulations office by June 15.
South Dakota does not currently have any educational, net worth or physical presence requirements for money lenders.
Any changes to application data, such as change of address, contact person, ownership, etc. must be reported to the Division of Banking via an amendment on the application form.
Take the first step toward becoming licensed in South Dakota by purchasing your money lender surety bond quickly and easily!
Apply for your surety bond
Get a FREE south dakota money lending bond Quote Today! Click here to begin