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Kentucky bonds

Kentucky — Check Cashers - NMLS Bond

Kentucky check-casher security is filed through NMLS and varies with the applicant's number of business locations. Start with the actual DFI license and location count. A new limited check-casher license permits cashing checks for a fee; it does not authorize deferred-deposit business.

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

What this bond does

Provide the Commissioner-payable electronic surety security required by KRS 286.9-040 for the applicant's check-casher licensing request.

Who needs it
The legal company seeking or maintaining Kentucky check-casher licensing, including the limited license DFI currently accepts for new applications. Existing deferred-deposit operations must maintain their actual approved license and authority.
Who it protects
Security is payable to the DFI Commissioner and benefits persons with causes of action under Subtitle 9. It is available for the Commissioner's expenses, fines and fees and customer losses or damages resulting from noncompliance. COMB-2 also addresses judgments and unpaid Commissioner-ordered amounts. Total surety liability to all persons is capped by the stated sum; the statutory suit period is three years after the underlying act.

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 NMLS filing and the location count

Confirm whether you are applying for a limited check-casher license or renewing an existing licensed business. DFI's current new-application instructions accept the limited license without deferred-deposit authority. A broad Check Cashers product name or existing NMLS company account is not permission to offer payday/deferred-deposit transactions.

KRS 286.9-040 sets security by business locations: one, $50,000; two to five, $100,000; six to ten, $150,000; eleven to twenty, $200,000; twenty-one to thirty, $300,000; thirty-one to forty, $400,000; more than forty, $500,000. Give DFI the complete location list and use its applicable count instead of assuming one branch's sum covers the entire request.

Current 808 KAR 1:170 Section 3 requires an Electronic Surety Bond through NMLS, with the principal's full legal name matching the applicant exactly. Have the company identifier and actual license type ready, and confirm the surety has submitted the accepted electronic undertaking. Buying a provider product or uploading a payment receipt does not complete that submission.

The posted COMB-2 explains the Subtitle 9 protected condition and a continuing obligation. It includes dated principal/surety signatures and titles, surety seal, a joint notarial acknowledgment and valid Power of Attorney when signed by an attorney-in-fact. For the NMLS request, follow the current electronic execution process rather than treating this paper form as the filing route.

The posted condition permits surety cancellation on written notice to principal and Commissioner, effective thirty days after the Commissioner's receipt. Earlier accrued obligations remain. The three-year limit for a suit runs from the act on which it is based, not automatically from cancellation.

Complete the NMLS company/control-person forms, required financial information, any applicable other-state license confirmation and evidence of compliance with Kentucky workers' compensation and unemployment compensation laws. DFI requires annual renewal by December 31 and continued accepted security. Renewal of the license remains necessary even when the security itself is continuing.

Sources

Have these ready

  1. Identify the actual limited check-casher or existing approved license and NMLS company.
  2. List business locations and confirm the KRS 286.9-040 tier with DFI.
  3. Match the principal's complete legal name and Commissioner-payable protected condition.
  4. Arrange actual NMLS electronic execution/submission with the surety.
  5. Complete company/control-person materials and plan December 31 renewal with maintained security.

Questions about this bond

Does a new limited check-casher license permit deferred deposits?

No. DFI expressly distinguishes the limited check-casher license it accepts for new applications from deferred-deposit authority. Match the actual business activity and license before purchasing security.

Why does the required sum change with locations?

KRS 286.9-040 uses seven business-location tiers, from $50,000 for one location to $500,000 for more than forty. Provide the full footprint and use DFI's applicable count; do not select only by an individual branch address.

What follows Purchase Now?

Propeller's Kentucky Check Cashers, NMLS application opens in a new tab. Match the principal, actual license, DFI location tier and accepted electronic condition, then confirm NMLS submission and licensing completion. Payment does not grant deferred-deposit authority or renew the license.

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