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North Carolina bonds

North Carolina — Collection Agency ALIEN #1 Replacement - MAIL Bond

Use this option when replacing North Carolina alien Bond #1 protecting clients' collection money. Bring the existing CA-A1, permit and written replacement request. The appropriate sum depends on the permit period and statutory calculation; a replacement is not automatically another initial $20,000 bond.

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Recorded state
North Carolina
Bond type
Collection Agency Bond
Category
Financial services

What this bond does

The replacement supports the client's right to have collection money accounted for under CA-A1. DOI acceptance and written release of the old surety are distinct from the provider purchase. This is not alien Bond #2, and it does not provide the Department's separate insolvency-examination expense security.

Who needs it
Outside-US-incorporated collection agencies maintaining alien client-protection security. Current law requires ultimate US parent ownership or majority control and servicing confined to accounts held by affiliates or subsidiaries of that parent. Match the existing legal principal; a replacement does not itself approve a name, ownership or business-model change.
Who it protects
CA-A1 binds principal and surety jointly and severally to North Carolina for clients' unaccounted collection money. The obligation continues until the relevant client collections have been accounted for, within its aggregate sum. Existing liabilities do not disappear on permit suspension or revocation, and buying another bond does not decide their allocation.

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

Identify the actual permit period and required sum before replacing CA-A1. The initial alien model uses $20,000. Renewal security doubles the section 58-70-20(a) calculation under current section 58-70-5(a)(5), producing a $20,000 to $60,000 range. Bring the preceding calendar year's direct collections and earned commissions, rather than assuming every replacement takes the initial amount.

The alien renewal CA-A1 requires Commissioner acceptance of the replacement and written notice releasing the previous surety. Coordinate effective dates and treatment of prior client collections with DOI. Do not assume a new receipt releases the old bond, retroactively fills a gap or grants a new permit.

A surety electing not to renew must notify both principal and Commissioner in writing at least 30 days before the permit period ends. The model also addresses renewal computation and endorsement when timely nonrenewal notice is absent. The continuous accounting condition remains important beyond the packet's next June 30 date instructions.

Use the exact permit holder, address, FEIN and permit number. Authorized representatives of principal and surety execute under seal, with the surety's notarial acknowledgment. A legal-name change requires registered or certified notice within ten days and an endorsement; it is not accomplished simply by entering a different name in checkout.

Purchase Now opens Propeller's ALIEN #1 Replacement MAIL application in a new tab. Bring existing bond and permit details, replacement instructions, calculation and dates. Confirm CA-A1 and execution before paying, then follow DOI's current bonds-only delivery directions. The renewal packet accepts mail or email; MAIL is not provider postal fulfillment or a paper-only rule. Complete any separate NCLMS permit update and retain the acceptance and release correspondence.

Sources

Have these ready

  1. Identify the existing CA-A1, permit and requested replacement period.
  2. Confirm the alien principal and current parent/affiliate-account eligibility.
  3. Bring the required calculation, collection totals, earned commissions and effective dates.
  4. Arrange authorized signatures, seals and surety acknowledgment.
  5. Coordinate DOI acceptance, old-surety release, delivery and any separate NCLMS change.

Questions about this bond

Is replacement alien Bond #1 always $20,000?

That is the posted initial sum. Renewal client security uses the doubled business-based calculation, within $20,000 to $60,000. Use DOI's required amount for the actual period rather than assuming replacement means initial.

Can I cancel the old bond once I pay?

The posted renewal CA-A1 requires Commissioner acceptance and written release notice to the former surety. Coordinate that process and effective dates with DOI; a provider payment does not resolve release or earlier collection liabilities.

Does MAIL mean the provider submits it?

Do not assume fulfillment from the label. The actual renewal packet permits a bonds-only mailing route or email, with the required completed document. Confirm who submits it and keep DOI's acceptance and any release correspondence.

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