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North Carolina bonds

North Carolina — Collection Agency ALIEN Bond #1 Initial

North Carolina's initial alien Bond #1 provides $20,000 security for clients' unaccounted collection money. Use it for an applicant incorporated outside the United States that meets the state's alien-corporation eligibility rules. It is the client-protection undertaking, not the separate alien Bond #2 for Department expenses.

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

What this bond does

Initial CA-A1 indemnifies clients when the agency fails to account for money collected on their accounts. Current section 58-70-5(a)(5) doubles the ordinary initial security, producing the posted $20,000 alien sum. The bond does not establish the applicant's eligibility or grant its collection agency permit.

Who needs it
Outside-US-incorporated applicants seeking an initial North Carolina collection agency permit. The current law requires ultimate ownership or majority control by a US parent and limits servicing to accounts held by affiliates or subsidiaries of that same parent. An owner's nationality or a US office address does not decide the classification.
Who it protects
Principal and surety are jointly and severally bound to the state for the benefit of the agency's clients. The model's client-money condition remains continuous until relevant collections are accounted for, with aggregate liability limited by the required sum. The Department-expense bond protects a different obligation and is not supplied by this #1 application.

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

Resolve incorporation and eligibility before ordering. DOI calls a North Carolina-incorporated applicant domestic and one incorporated elsewhere in the United States foreign. Alien means incorporation outside the United States, with the additional current parent-control and affiliate-account restrictions. Do not use the alien form merely because ownership is international.

The posted initial CA-A1 specifies $20,000. Its reference to old section 58-70-5(e) is not the current authority for doubling; current section 58-70-5(a)(5) supplies that rule. Later renewal security uses the statutory business-based calculation and doubling rather than an assumption that the initial sum applies indefinitely.

Match the legal applicant, address, FEIN and permit-period dates. The packet directs initial bonds and continuation certificates through the next licensing period's June 30 end date. Client-accounting liability continues under the condition, so the date field is not an automatic release from unaccounted money.

Authorized principal and surety representatives execute under seal, with a surety notarial acknowledgment. Nonrenewal requires written notice to both principal and Commissioner at least 30 days before the permit period ends. Replacement release requires Commissioner acceptance and written notice; existing obligations survive permit suspension or revocation.

Purchase Now opens Propeller's ALIEN Bond #1 Initial application in a new tab. Bring incorporation and parent-control information, the affiliate-account business description, initial permit request and required dates. Confirm CA-A1 before paying, complete execution and use DOI's bonds-only delivery instructions. Complete the separate NCLMS permit process and any required #2 expense security; one #1 purchase does not complete the application.

Sources

Have these ready

  1. Confirm outside-US incorporation and ultimate US parent ownership or majority control.
  2. Describe the permitted affiliate or subsidiary accounts to be serviced.
  3. Match initial CA-A1, $20,000, legal name, FEIN and requested dates.
  4. Arrange authorized signatures, seals and surety acknowledgment.
  5. Confirm DOI delivery, separate NCLMS application and required additional expense security.

Questions about this bond

Why is initial alien Bond #1 $20,000?

Current section 58-70-5(a)(5) doubles the section 58-70-20 requirement for alien corporations. The posted initial CA-A1 specifies $20,000, rather than the ordinary $10,000 domestic or foreign initial client bond.

Can an alien agency collect any outside client's accounts?

Current section 58-70-5(b1) limits the alien corporation to servicing accounts held by affiliates or subsidiaries of the same ultimate US parent. Confirm eligibility and the actual business model with DOI before treating the bond as permission to operate.

Does this include Bond #2?

No. CA-A1 protects client collection money. CA-A2 addresses DOI visiting and examination expenses tied to the agency's federal bankruptcy or state receivership. Check the complete permit request and obtain the separate required documents.

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