Who requires it
Iowa Secretary of State
License & permit · Iowa
Iowa Credit Services Organization Bond
Iowa credit services organizations that must post security under chapter 538A file either a surety bond or a surety-account notice with the Secretary of State. Iowa Code § 538A.4 sets the amount at not less than ten thousand dollars and requires continuous coverage until the surety cancels with at least thirty days’ written notice to both the organization and the Secretary of State. The bond runs in favor of the state for persons damaged by chapter 538A violations.
Common bond amount
$10,000
Minimum surety or surety account under Iowa Code § 538A.4 when § 538A.3 requires security.
How you file
File the Secretary of State bond form, or a surety-account notice
Renewal
Continuous; 30-day cancellation notice to the organization and SOS
Who requires it
Credit services organizations required by Iowa Code § 538A.3 to obtain a surety bond or establish a surety account before offering covered credit-services activities in Iowa. This is separate from chapter 533A debt-management licensing.
How much is required
Section 538A.4 requires the bond or surety account to be at least ten thousand dollars. Claims to all damaged persons cannot exceed that security amount.
How to get and file it
If using a surety, execute the Secretary of State’s prescribed § 538A.4 bond form with an Iowa-authorized surety company and file a copy with the SOS registration materials. If using a surety account, file notice of the depository, trustee, and account number instead. Keep the bond or surety account in place while the organization is subject to chapter 538A security requirements. Observe the thirty-day cancellation notice window and replace coverage before any effective cancellation date.
Cost note
Ten thousand dollars is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Minimum amount
- $10,000 surety or surety account
- Authority
- Iowa Code § 538A.4
- Filing
- Copy of bond or surety-account notice with the Secretary of State
- Who can recover
- In favor of the state for persons damaged by chapter 538A violations
Official sources
Frequently asked questions
Can I use a bank account instead of a surety bond?
Yes. Section 538A.4 allows a surety account as an alternative to a surety bond. You must notify the Secretary of State of the depository, trustee, and account number.
Is this the same as Iowa’s debt-management bond?
No. Credit services organizations register security under chapter 538A with the Secretary of State. Debt-management businesses license under chapter 533A with the Division of Banking and post $25,000 per office.
Related Iowa bond guides
Debt Management Bond
$25,000 per office
Iowa debt-management businesses must be licensed under chapter 533A and file a $25,000 surety for each office with the superintendent of banking. Section 533A.2 conditions the bond on compliance with Iowa debt-management law and on faithful accounting of moneys collected for debtors. Claims for each office cannot exceed the twenty-five-thousand-dollar required amount. This is not a collection-agency license bond—Iowa does not operate a parallel statewide collector surety program.
Mortgage Lender Bond
$25,000 / $100,000 / $150,000
Iowa mortgage bankers, mortgage brokers, and closing agents must maintain chapter 535B sureties with the Division of Banking. Iowa Code § 535B.9 starts mortgage broker and banker applicants at $100,000 until the superintendent’s volume schedule applies, and it sets closing agents at $25,000. 187 IAC 18.2 implements the operative banker/broker amounts: $100,000 when prior-year residential mortgage volume is $100,000,000 or less, and $150,000 when volume exceeds $100,000,000. Filings run electronically through NMLS.
Money Transmitter Bond
$100,000–$500,000
Iowa money transmitter applicants and licensees must keep a surety bond acceptable to the superintendent under Iowa Code § 533C.802. The amount is the greater of one hundred thousand dollars or one hundred percent of the licensee’s average daily money-transmission liability in Iowa for the most recently completed three-month period, capped at five hundred thousand dollars. Holding the $500,000 maximum excuses the average-daily-liability calculation. Filings typically run through NMLS with the Division of Banking.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Iowa 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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