Ohio Short Term Lender Bond

Ohio short-term lenders must maintain a corporate surety bond as a condition of doing business under the Short-Term Loan Act. Current Ohio law requires at least $100,000 for a standard for-profit licensee. A reduced $50,000 amount applies to a nonprofit corporation incorporated under Chapter 1702 of the Ohio Revised Code.

Cost of the Ohio Short Term Lender Bond

The supplied NNA/Propeller pricing is $500 for the $50,000 nonprofit bond option and $1,000 for the $100,000 standard bond option, each shown with a one-year product term. These are supplied commercial premiums; Ohio law does not prescribe private surety pricing.

Apply online for the Ohio Short Term Lender Bond.

How the Ohio Short Term Lender Bond Works

Ohio Revised Code § 1321.37(D) requires the bond to be issued by a bonding or insurance company authorized to do business in Ohio. The bond is in favor of the Superintendent of Financial Institutions and is for the exclusive benefit of borrowers injured by a licensee's or employee's violation of the Ohio Short-Term Loan Act.

The bond involves three parties:

Principal: Ohio short-term lender licensee

Obligee: Superintendent of Financial Institutions, Ohio Division of Financial Institutions

Surety: Bonding or insurance company authorized to do business in Ohio

Learn about the surety bond claim process for general information about claims and principal reimbursement obligations.

Which Bond Amount Applies?

$100,000 minimum — Standard for-profit applicant or licensee under the Ohio Short-Term Loan Act.

$50,000 — Applicant or licensee that is a nonprofit corporation incorporated under Chapter 1702 of the Ohio Revised Code.

Bond Term and Continuous Coverage

The statutory bond term must coincide with the license term. Ohio's current surety-bond rule also requires continuous maintenance of coverage and permits a bond to span more than one license period when coverage remains continuous and does not expire before the end of a license period.

How to Get the Ohio Short Term Lender Bond

1. Confirm whether the applicant is a standard for-profit lender or a qualifying Chapter 1702 nonprofit corporation.
2. Select the applicable $100,000 minimum or $50,000 nonprofit bond amount.
3. Complete the online bond application.
4. Complete underwriting, pay the applicable premium, and obtain the bond.
5. File a copy with the Superintendent of Financial Institutions and continuously maintain the required coverage.

Review Ohio Revised Code § 1321.37 and Ohio Administrative Code Rule 1301:8-11-06 for the current requirements.

Get Your Ohio Short Term Lender Bond

Start your Ohio Short Term Lender Bond application online. For assistance, call 855-215-2160.