Who requires it
Alabama Securities Commission — Licensing Division
License & permit · Alabama
Alabama Money Transmitter Bond
Money transmitters licensed under Alabama’s Monetary Transmission Act must keep Commission-acceptable coverage—commonly a surety bond on Form USB—sized to a statutory floor. The amount is never less than $100,000, and it rises when the outstanding-obligations formula produces a higher figure, up to a $5,000,000 Commission ceiling.
Common bond amount
$100,000 minimum
Greater of $100,000 or the § 8-7A-7 outstanding-obligations formula; Commission may require up to $5,000,000.
How you file
File Form USB with the Securities Commission, or a letter of credit the Commission accepts
Renewal
Annual; expire March 31; renew by March 15 with proof of security
Who requires it
Persons engaged in money transmission in Alabama who need an Alabama Securities Commission license under Chapter 7A of Title 8. Authorized delegates of a licensed transmitter are covered through the licensee’s program rather than a separate statewide license bond of their own.
How much is required
Ala. Code § 8-7A-7 requires coverage in an amount the Commission sets by rule or order, never less than the greater of $100,000 or average daily outstanding obligations for money received for transmission in Alabama plus fifty percent of average daily outstanding payment-instrument and stored-value obligations in Alabama. The Commission may increase the requirement to as much as $5,000,000 when financial condition warrants, and may accept a letter of credit or other similar security instead of a bond.
How to get and file it
Complete Form MT with the Licensing Division, include Form USB (or other Commission-accepted security) sized to your Alabama exposure, and mail the package with the required fees to the Alabama Securities Commission. Keep copies of everything you file. Licenses expire March 31. Renewals (Form MTR) are due with fees by March 15 and must show continued adequate coverage. A surety bond must cover claims for at least five years after Alabama money-transmission activity stops, subject to Commission discretion to reduce coverage when outstanding obligations fall.
Cost note
The statutory amount is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Statutory floor
- Not less than $100,000
- Formula
- Average daily AL transmission obligations + 50% of average daily AL payment-instrument and stored-value obligations, when greater
- Form
- ASC Form USB for surety filings
- Net worth
- Separate GAAP net-worth minimum of at least $25,000 under § 8-7A-10
Official sources
Related resources
Frequently asked questions
Can I use a letter of credit instead of a surety bond?
Yes. Section 8-7A-7 lets the Commission accept a letter of credit or other similar security in lieu of a bond when the form is satisfactory to the Commission.
How long must the bond cover claims after I leave Alabama?
A surety bond must cover claims for a minimum of five years after you stop providing money transmission services in Alabama, unless the Commission reduces or eliminates coverage because outstanding obligations are below the bond amount.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Alabama application
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Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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