Section 45-7-136 - Surety bond(a) An applicant for a money transmission license shall provide, and a licensee shall maintain at all times, security consisting of a surety bond in a form satisfactory to the commissioner.(b) The amount of the required security must be the greater of fifty thousand dollars ($50,000) or an amount equal to one hundred percent (100%) of the licensee's average daily money transmission liability in this state calculated for the most recently completed calendar quarter, up to a maximum of eight hundred thousand dollars ($800,000).(c) A licensee that maintains a surety bond in the maximum amount provided for in subsection (b) is not required to calculate its average daily money transmission liability in this state for purposes of this section.(d) A licensee may exceed the maximum required bond amount pursuant to § 45-7-138(a)(5).(e) The surety bond must run to the state of Tennessee for the benefit of any claimants against the licensee to secure the faithful performance of the obligations of the licensee with respect to the receipt, handling, transmission, and payment of money in connection with money transmission. The aggregate liability of the surety bond shall not exceed the principal sum of the bond. Surety bonds must be obtained for a term of not less than one (1) year and evidence of the renewal of the surety bond must be provided to the commissioner not less than thirty (30) days before the bond expiration date. Claimants against the licensee or its authorized delegates may bring suit directly on the security device, or the commissioner may bring suit on behalf of the claimants, either in one (1) action or in successive actions. In the case of an irrevocable letter of credit, licensees shall obtain letters of credit for terms of not less than three (3) years and renew the letters of credit annually.(f) The surety bond must remain in effect until cancellation, which may occur only after thirty (30) days' written notice to the commissioner. Cancellation does not affect any liability incurred or accrued during that period.(g) The surety bond must remain in place for three (3) years after the licensee ceases money transmission operations in this state. The commissioner may permit a licensee to substitute a letter of credit or other form of security device acceptable to the commissioner for the security device in place at the time the licensee ceases money transmission operations in this state.Added by 2023 Tenn. Acts, ch. 115, s 1, eff. 1/1/2024.