§ 599-K — Required surety bond

§ 599-k. Required surety bond. 1. Each mortgage loan originator shall\nbe covered by a surety bond in accordance with this section. In the\nevent that the mortgage loan originator is an employee or exclusive\nagent of an originating entity, the surety bond of such person may be\nused to satisfy the mortgage loan originator's surety bond requirement;\nprovided that such surety bond contains coverage for each mortgage loan\noriginator not otherwise covered by a qualifying surety bond in an\namount prescribed in subdivision two of this section. The surety bond\nshall be in a form prescribed by the superintendent. The superintendent\nmay promulgate rules or regulations with respect to the requirements for\nsuch surety bonds as are necessary to accomplish the purposes of this\narticle.\n 2. The penal amount of the required surety bond shall be maintained in\nan amount that reflects the dollar amount of loans originated by the\nmortgage loan originator as determined by the superintendent.\n 3. When an action is commenced on a licensee's bond, the\nsuperintendent may require the filing of a new or supplemental bond.\n 4. Immediately upon recovery upon any claim or action on or under the\nbond, the mortgage loan originator (or the originating entity as the\ncase may be), shall file a new or supplemental bond restoring the face\namount of the bond to the amount required by the superintendent.\n