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This entry was published on 2014-09-22
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SECTION 599-K
Required surety bond
Banking (BNK) CHAPTER 2, ARTICLE 12-E
§ 599-k. Required surety bond. 1. Each mortgage loan originator shall
be covered by a surety bond in accordance with this section. In the
event that the mortgage loan originator is an employee or exclusive
agent of an originating entity, the surety bond of such person may be
used to satisfy the mortgage loan originator's surety bond requirement;
provided that such surety bond contains coverage for each mortgage loan
originator not otherwise covered by a qualifying surety bond in an
amount prescribed in subdivision two of this section. The surety bond
shall be in a form prescribed by the superintendent. The superintendent
may promulgate rules or regulations with respect to the requirements for
such surety bonds as are necessary to accomplish the purposes of this
article.

2. The penal amount of the required surety bond shall be maintained in
an amount that reflects the dollar amount of loans originated by the
mortgage loan originator as determined by the superintendent.

3. When an action is commenced on a licensee's bond, the
superintendent may require the filing of a new or supplemental bond.

4. Immediately upon recovery upon any claim or action on or under the
bond, the mortgage loan originator (or the originating entity as the
case may be), shall file a new or supplemental bond restoring the face
amount of the bond to the amount required by the superintendent.