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California — Check Sellers, Bill Payers And Proraters Bond

California's combined listing covers distinct licensed roles. A check seller ordinarily files $500,000 security; a bill payer or prorater starts with $25,000. Identify the actual business and DFPI request first, then arrange the approved undertaking and original filing with the licensing application.

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Recorded state
California
Bond type
Check Cashing / Seller of Checks Bond
Category
Financial services

What this bond does

Provide the applicable security under the Check Sellers, Bill Payers and Proraters Law for the business named in the DFPI application.

Who needs it
The actual check seller, bill payer, general prorater or special prorater. Merely cashing checks is a different activity; DFPI says check cashers use the Department of Justice permit route rather than this license.
Who it protects
The posted CSCL-105 condition benefits the Commissioner and persons with causes of action under the Law. It covers the principal and its agents/employees faithfully complying with the Law and rules, honestly applying received funds, performing obligations and paying amounts due under the Law. The stated penal sum is an aggregate; an injured person may sue in their own name within two years after the act or default.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details for the role, required sum and original filing

CSCL-104 asks you to select Check Seller, Bill Payer, General Prorater or Special Prorater. A seller issues payment instruments, a bill payer receives money to pay an obligor's bills, and a prorater distributes or manages a customer's payments. Describe the actual business plan, offices, mobile units and agents so the selected class matches the activity.

Financial Code 12206 sets the ordinary minimum at $500,000 for check selling and $25,000 for receiving money to pay obligations. Section 12205(b) permits a check seller meeting the separate $1 million excess-assets and liquid-assets qualification to use a Commissioner-approved $100,000 alternative. That alternative is not available merely because the applicant prefers a smaller undertaking.

Capital, net assets and liquid assets are separate qualifications. Using agencies changes the bill payer/prorater financial requirements under Section 12205(a). The application also calls for separate fidelity coverage; the license security should not be treated as a substitute for that coverage or the required assets.

The posted CSCL-105 is titled Bond of Check Seller and refers to Section 12206(b), while its protected condition covers the Law. Use DFPI's accepted format for the actual licensed role and requested sum. Match the legal licensee name, optional business names, both service addresses, surety, effective date and aggregate entries.

DFPI's instructions require the original, the licensee and surety attorney-in-fact signatures, a notarial jurat for each and the surety Power of Attorney. The model separately requires immediate notice to DFPI when an action is served or a claim payment is made. Its two-year action limit runs from the act/default, not from the date a replacement is purchased.

Submit the licensing packet with its entity authorization, organizing documents, required identity/financial exhibits and proposed business documents. Follow current DFPI filing and execution directions. The separate application verification may permit a California perjury declaration; that does not remove the CSCL-105 instructions for notarized surety-document signatures.

Sources

Have these ready

  1. Identify the actual seller, bill payer or prorater role and DFPI request.
  2. Confirm the statutory sum and any specifically approved alternative qualification.
  3. Match the legal licensee, business names, service addresses, surety and effective date.
  4. Arrange the original, both required notarial jurats and surety Power of Attorney.
  5. Complete CSCL-104 exhibits and separate asset/fidelity requirements before submitting.

Questions about this bond

Is $25,000 the standard requirement for every role in this listing?

No. Ordinary check-seller security is $500,000; bill payers and proraters start at $25,000. The $100,000 check-seller alternative has separate financial qualifications and requires Commissioner approval. Match the actual request before applying.

Is this the permit for a business that only cashes checks?

No. DFPI distinguishes check selling, bill paying and prorating from check cashing. Its programme says check cashers use a Department of Justice permit route. Describe each service instead of relying on the similar words.

What follows Purchase Now?

Propeller's California Check Sellers, Bill Payers and Proraters application opens in a new tab. Match the actual role, principal, DFPI-accepted condition, sum and execution, then submit the original with the licensing materials as directed. Payment does not select the license class or establish an alternative qualification.

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