Regulatory Obligations and Coverage

Licensees operating under Section 138.09 of the Wisconsin Statutes must secure this bond to maintain active status with the Department of Financial Institutions. The obligation covers the loan company’s adherence to all lawful orders, rules, and regulations issued by the state, ensuring that the business conducts its lending practices in accordance with the law.

The surety’s aggregate liability is limited to the bond amount specified on the document, regardless of the number of claimants or claim amounts. If claims for which the surety acknowledges liability exceed that sum, the surety may discharge its remaining liability by paying the sum to DFI for the claimants.

Handling Claims and Cancellation

Claimants are required to provide written notice of their claims to the surety within twelve months following the date of bond cancellation. The surety is responsible for notifying the Department of Financial Institutions regarding any claims demands or the final disposition of filed claims.

The bond remains continuous until a formal cancellation notice is provided. To terminate the bond, the surety must submit written notice via certified mail to the Department of Financial Institutions. Liability for future acts ceases sixty days after the Department receives this notification, though the surety remains liable for acts occurring prior to that date.

Filing and Administrative Procedures

Applicants must ensure the bond form is completed accurately with the company’s name and address. A Power of Attorney or Certificate of Authority for the Attorney-in-Fact must be attached to the bond upon submission to the Department of Financial Institutions.

The bonding company must provide the name and address of a designated claims agent. Failure to provide complete or accurate documentation may result in the denial or revocation of the loan company's license, as well as additional legal penalties.

Purchase Now opens Propeller's Wisconsin loan company application in a new tab. Bring DFI's written request, accepted bond form, licensed entity, all offices, required sum, dates and existing bond details. Confirm these and the authority/claims-agent information before paying. DFI's current guide calls for a $5,000 increase for each added office unless the bond is already $50,000, and mailing riders for amount, name or d/b/a changes to DOB. Complete the applicable bond submission, keep acceptance and handle NMLS licensing separately.