Who requires it
Iowa Division of Banking — Money transmission
License & permit · Iowa
Iowa Money Transmitter Bond
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.
Common bond amount
$100,000–$500,000
Greater of $100,000 or 100% of average daily Iowa liability over three months; cap $500,000 (Iowa Code § 533C.802).
How you file
File electronically through NMLS
Renewal
Continuous while licensed; recalculate liability when below the $500,000 maximum
Who requires it
Persons engaging in money transmission under Iowa’s Uniform Money Transmission Modernization Act (chapter 533C) who must hold an Iowa money transmitter license from the Division of Banking.
How much is required
Section 533C.802 compares one hundred thousand dollars against one hundred percent of average daily Iowa liability for the latest completed three-month window and takes the greater amount, stopping at five hundred thousand dollars. A licensee may post more than the statutory maximum when other chapter 533C provisions require it.
How to get and file it
Confirm the required amount with the Division of Banking or the NMLS Iowa checklist, then authorize an admitted surety to submit an electronic bond satisfactory to the superintendent through NMLS. Maintain the required security at all times while licensed. Recalculate average daily Iowa liability when you are below the $500,000 maximum so the amount stays at least equal to that liability figure or $100,000, whichever is greater.
Cost note
One hundred thousand to five hundred thousand dollars is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Floor
- $100,000
- Volume formula
- 100% of average daily Iowa money-transmission liability (most recent three months)
- Cap
- $500,000
- Maximum-bond shortcut
- Holding $500,000 excuses the average-daily-liability calculation
Official sources
Related resources
Frequently asked questions
Is $100,000 always enough for an Iowa money transmitter?
Only if average daily Iowa money-transmission liability for the latest three-month period is $100,000 or less. Otherwise the amount equals that liability figure up to $500,000.
Can I avoid calculating average daily liability?
Yes. Section 533C.802 says a licensee that maintains the $500,000 maximum need not calculate average daily money-transmission liability in Iowa for bond-sizing purposes.
Related Iowa bond guides
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.
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.
Motor Vehicle Dealer Bond
$75,000
Iowa motor vehicle dealers and towable recreational vehicle dealers must file a $75,000 surety bond with the Department of Transportation before the dealer license issues. Iowa Code § 322.4 sets the seventy-five-thousand-dollar amount for dealers selling vehicles that require a certificate of title. 761 IAC 425.4 applies the same $75,000 amount to towable RV dealers and allows a dual-licensed dealer at one name and principal place of business to rely on a single bond. Evidence stays on file with the motor vehicle division, and the original bond remains with the dealer’s business records.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
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Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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