Title 5 Banking
2204 Required Amount of Licensed Lender's Surety Bond or Irrevocable Letter of Credit
Formerly Regulation No.: 5.2208.0004
Effective Date: January 1, 1997
A licensee shall file with the State Bank Commissioner (the "Commissioner") an original corporate surety bond or an irrevocable letter of credit, in a form satisfactory to the Commissioner, in accordance with Section 2208 of Title 5 of the Delaware Code ("Section 2208"). The minimum amount of the surety bond or irrevocable letter of credit is based on the factors identified in Section 2208.
A licensee shall obtain a surety bond or irrevocable letter of credit in an amount that correlates with the licensee's volume of Delaware lending for the year ending December 31 that precedes the effective year of the license under Chapter 22 of Title 5 of the Delaware Code. A licensee who obtains a surety bond that is effective for more than one year or an irrevocable letter of credit shall annually review the amount of the surety bond or irrevocable letter of credit, as of December 31 of each year, to ensure that the minimum required amount is maintained. The minimum required amount of the surety bond or irrevocable letter of credit is according to the following table:
Annual Volume of Delaware Loans |
Minimum Required Amount of Surety Bond or Irrevocable Letter of Credit |
not more than $23,000,000 |
$50,000 |
$23,000,001 - $35,000,000 |
$75,000 |
$35,000,001 - $47,000,000 |
$100,000 |
$47,000,001 - $59,000,000 |
$125,000 |
$59,000,001 - $71,000,000 |
$150,000 |
$71,000,001 - $83,000,000 |
$175,000 |
$83,000,001 and over |
$200,000 |
