Montana considers revising surety bond requirement for deferred deposit lenders

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If passed, Montana HB 116 would revise the license bond requirement for deferred deposit lenders. The bill, which is sponsored by Rep. Jenny Eck, was introduced on June 26, 2012, and approved by the House on January 18, 2013. A senate hearing is scheduled to discuss the bill on March 22, 2013.

If passed, the bill would requiring bonding — in the amount of $10,000 per location — for “each location at or from which deferred deposit loan transactions are conducted with consumers in [the State].” The bill would also require the bond to cover the payment of civil penalties, restitution, and costs that the Department of Administration ordered as a result of a violation of the applicable law. The law currently requires the bond to cover the payment of damages owed to consumers as a result of a violation of the applicable law.

Click here to read Montana HB 116 in its entirety.

If you need a surety bond in Montana or any other state, contact a surety expert online 24/7 or by phone at 1 (800) 308-4358 Monday through Friday from 8 a.m. to 7 p.m. CST.