A state regulatory license bond guarantees that a business will operate in accordance with all applicable government rules and regulations. These bonds are required by the state before a business is granted a license to operate and the bond must be held in good standing, or the business license could be terminated. Examples of industries that require state regulatory license bonds include:
Many state regulatory and license bonds are now electronic surety bonds (ESBs) on the NMLS system. NMLS (the Nationwide Multistate Licensing System and Registry) is a national online system for managing state licensing. It is utilized by multiple financial industries including mortgage, collection agents, money transmitters, and consumer lenders. Since September 2016, NMLS has been converting, creating, and managing ESBs as each state allows. As of 2022, over half the states have begun using the NMLS system for e-bonding. The C2B staff will guide you through the process of e-bonding and is an excellent resource for your NMLS/ESB questions.