Check Casher Bond
Check casher bonds are required in many states for anyone who has a license for or is applying for a license to engage in the business of check cashing or deferred presentment services. States have various bond and license requirements, so it is important to contact the obligee (person requiring the bond) in order to find out your specific requirements.
In general, these bonds serve to bind the principal to comply with all laws, ordinances, acts, etc. in relation to check cashing in their state. Should any loss occur due to a violation of any of these laws, the principal is expected to pay out any fines, fees, or interest incurred.
A check casher bond takes the liability away from the obligee requiring the bond because it guarantees that funds will be furnished in the event of a loss.
These bonds are generally continuous, but certain states will require a continuation certificate. Some states even have statutory expiration dates that must be met. If a continuation certificate is needed, it will be mailed to the principal. It is then the principal’s responsibility to make sure that the certificate is delivered to the correct obligee. If a certificate is not required, the bond is considered to be in effect until a cancellation notice is received.
Though this can vary, check casher bonds typically have a 30-day cancellation provision.