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.
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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.
Sources
- NC DOI complete alien initial CA-A1 and CA-A2 packet (opens in a new tab)Checked October 27, 2026
- North Carolina section 58-70-5 — alien eligibility and doubled security (opens in a new tab)Checked October 27, 2026
- NC DOI application and domicile guidance (opens in a new tab)Checked October 27, 2026
- North Carolina section 58-70-20 — additional Department expenses (opens in a new tab)Checked October 27, 2026
Have these ready
- Confirm outside-US incorporation and the United States parent/control and affiliate-account requirements.
- Identify CA-A2 initial Department-expense security separately from CA-A1 client protection.
- Match the legal applicant, FEIN, $20,000 sum and intended permit dates.
- Arrange authorized signatures, seals and the surety's notarial acknowledgment.
- 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.

