§ 40-14-637 — Surety bonds

(a) Any organization employing or contracting with a
mortgage loan originator shall maintain a surety bond to the
state of Wyoming in accordance with this section. The surety
bond shall be used to cover individual mortgage loan originators
employed by or under contract with the organization. The amount
of the bond shall be established by rule of the administrator
based upon the volume of residential mortgage loan activity
transacted by the organization under this act.
(b) The surety bond shall be a continuing obligation of
the issuing surety. The surety's liability under the bond for
any claims made under the bond either individually or in the
aggregate shall in no event exceed the face amount of the bond
issued. The bond shall be issued by a surety authorized to do
business in the state of Wyoming. The bond, including any and
all riders and endorsements executed subsequent to the effective
date of the bond, shall be placed on file with the
administrator.
(c) In the event an organization or mortgage loan
originator employed by or under contract with an organization
has violated any of the provisions of this act or a rule or
order lawfully made pursuant to this act pertaining to a
residential mortgage loan transaction, or federal law or
regulation pertaining to the mortgage lending or mortgage
brokering, and has damaged any person by such violation, then
the bond shall be forfeited and paid by the surety to the state
of Wyoming for the benefit of any person so damaged, in an
amount sufficient to satisfy the violation or the bond in its
entirety if the violation exceeds the amount of the bond.
(d) Surety bonds shall remain effective continuously until
released in writing by the administrator. If a bond has not
been previously released by the administrator, the bond shall
expire two (2) years after the date of the surrender, revocation
or expiration of the license.