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Virginia Administrative Code
Title 10. Finance And Financial Institutions
Agency 5. State Corporation Commission
Chapter 120. Money Transmitters
10/24/2026

10VAC5-120-30.  Surety bonds and alternative security devices.

A. The form of the surety bond under § 6.2-1951 of the Code of Virginia shall be prescribed and provided by the commissioner. The bond shall be submitted prior to the issuance of a license and shall be maintained continuously thereafter as long as the licensee or former licensee has outstanding money transmission obligations.

B. The written notice of cancellation required by § 6.2-1951 F of the Code of Virginia shall be submitted to the commissioner through the NMLS.

C. As an alternative to a surety bond under § 6.2-1951 of the Code of Virginia, in whole or in part, a licensee or applicant for a license may be permitted to substitute the deposit of certain property with a bank, trust company, or savings institution authorized to conduct business in the Commonwealth of Virginia. Such deposited property, other than cash, shall be valued at the lower of face or market value for the purposes of this chapter.

D. The deposited property may consist only of cash, securities issued or guaranteed by the United States or any agency or instrumentality of the United States, or securities issued by the Commonwealth of Virginia or any political subdivision of the Commonwealth of Virginia.

E. The property deposit shall be made upon the commissioner's authorization and pursuant to a written agreement using a form prescribed by the commissioner. The agreement shall provide, among other things, that the commissioner shall have the authority to permit or require the substitution or liquidation of property held under the agreement, and that interest and dividends attributable to the property will be paid to the licensee making the deposit.

F. If a licensee ceases money transmission activity and is no longer licensed under Chapter 19.1, the commissioner shall have authority to permit reduction or elimination of the surety bond or property deposit to the extent that the former licensee's obligations arising from its licensed business are reduced or eliminated, and shall have authority to permit the substitution of other means of security for the security device as permitted by § 6.2-1951 of the Code of Virginia and this section.

Statutory Authority

§ 6.2-1913 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 12, Issue 22, eff. July 1, 1996; amended, Virginia Register Volume 43, Issue 4, eff. October 1, 2026.

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