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North Carolina bonds

North Carolina — Collection Agency ALIEN Bond #2 Initial State Expenses

North Carolina's initial alien Bond #2 is additional security for Department of Insurance examination expenses in specified insolvency proceedings. The current CA-A2 model calls for $20,000. It is not the separate alien Bond #1 protecting clients' unaccounted collection money, and alien status means incorporation outside the United States.

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

What this bond does

Bond #2 reimburses the Department for visiting and examining the agency in connection with a federal bankruptcy or state receivership proceeding in which the agency is the subject. It is not a general guarantee of every routine examination expense or payment of the agency's permit fees.

Who needs it
Collection agency applicants incorporated outside the United States that meet North Carolina's alien-corporation requirements. Section 58-70-5 requires ultimate United States parent ownership or majority control and limits the alien corporation to servicing accounts held by affiliates or subsidiaries of that same parent. Office location alone does not determine this classification.
Who it protects
The principal and surety are jointly and severally bound to the state under the additional $20,000 Department-expense condition. The bond runs in favor of the Department, remains continuous until the Commissioner terminates it, and limits aggregate surety liability to the required sum. It does not replace the separate client-protection bond.

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

Check legal domicile and eligibility first. The DOI distinguishes domestic North Carolina incorporation, foreign incorporation elsewhere in the United States, and alien incorporation outside the United States. Current section 58-70-5(a)(5) doubles the section 58-70-20 security for alien corporations; the posted initial CA-A2 therefore specifies $20,000 rather than the ordinary $10,000 additional expense bond.

Match the obligation, not merely the state name. CA-A2 is for Department visiting and examination expenses connected with the agency's federal bankruptcy or state receivership. The same alien packet contains CA-A1 for client collection money. Ordering #2 does not supply #1 or make the two conditions interchangeable.

The model requires 30 days' written nonrenewal notice to both the principal and Commissioner before the permit period ends, but stays continuous until Commissioner termination. A replacement must be accepted and the old surety released in writing by the Commissioner. Do not treat the nonrenewal notice as an automatic release from prior obligations.

Use the legal applicant name, address, FEIN and authorized representatives. The model requires execution under seal and a surety notarial acknowledgment; name changes require registered or certified notice within ten days and an endorsement. Existing permit-period liabilities survive suspension or revocation, and payment to the Commissioner follows the model's written-demand provisions.

Purchase Now opens Propeller's alien initial State Expenses Bond #2 application in a new tab. Bring the incorporation and parent-control information, current request for CA-A2, required sum and dates. Confirm that the issued document is #2 before paying, execute it and follow DOI's bonds-only delivery instructions. Complete the separate NCLMS permit application and any required client-protection security; checkout does not establish eligibility or grant the permit.

Sources

Have these ready

  1. Confirm outside-US incorporation and the United States parent/control and affiliate-account requirements.
  2. Identify CA-A2 initial Department-expense security separately from CA-A1 client protection.
  3. Match the legal applicant, FEIN, $20,000 sum and intended permit dates.
  4. Arrange authorized signatures, seals and the surety's notarial acknowledgment.
  5. Confirm DOI bond delivery, separate NCLMS application and any other required security.

Questions about this bond

Does alien refer to the owners' nationality?

The DOI and statute classify the applicant by where it was incorporated or organized. Alien means outside the United States. The current law also imposes United States parent/control and affiliate-account servicing requirements.

Why is this additional expense bond $20,000?

Current section 58-70-5(a)(5) doubles section 58-70-20 bond requirements for an alien corporation. The posted initial CA-A2 expense model specifies $20,000. Do not substitute the ordinary foreign additional-bond sum.

Does Bond #2 cover client collection losses?

Its named purpose is the Department's visiting and examination expenses connected with the agency's federal bankruptcy or state receivership proceeding. The packet's separate CA-A1 addresses clients' unaccounted collection money. Confirm which documents the application requires.

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