Who requires it
Massachusetts Division of Banks
License & permit · Massachusetts
Massachusetts Money Transmitter Bond
Massachusetts money transmitters licensed under the Money Transmission Act, G.L. c. 169B, must maintain a surety bond satisfactory to the Commissioner of Banks. Section 9 sets the amount at the greater of one hundred thousand dollars or one hundred percent of the licensee’s average daily money transmission liability in the commonwealth for the most recently completed three-month period, capped at five hundred thousand dollars. The Division of Banks administers the license and security requirement.
Common bond amount
$100,000–$500,000
Greater of $100,000 or 100% average daily Massachusetts money transmission liability for the most recent completed three-month period; statutory maximum $500,000.
How you file
Surety bond under G.L. c. 169B § 9, in a form the commissioner accepts
Renewal
Recalculate with MA liability; keep continuous while licensed
Who requires it
Applicants and licensees for a Massachusetts money transmission license under G.L. c. 169B with the Division of Banks. Average daily Massachusetts money transmission liability drives the amount above the one-hundred-thousand-dollar floor. Confirm that your activity is in-scope money transmission under chapter 169B before relying on another license’s bond.
How much is required
G.L. c. 169B § 9(b) requires the greater of (1) $100,000 or (2) 100% of average daily money transmission liability in the commonwealth for the most recently completed three-month period, not more than $500,000. A licensee that already maintains the five-hundred-thousand-dollar maximum is not required to recalculate average daily liability for that subsection. Tangible net worth and permissible-investment rules in the same section are separate from the surety amount.
How to get and file it
Compute average daily Massachusetts money transmission liability for the most recent completed three-month period using Division of Banks / NMLS instructions, set the amount at the greater of one hundred thousand dollars or that figure (capped at five hundred thousand), and arrange a surety bond in a form satisfactory to the commissioner with a surety acceptable for Massachusetts filings. Maintain the bond at all times while licensed. Recalculate when Massachusetts liability grows and increase the amount before reporting or renewal deadlines unless you already hold the five-hundred-thousand-dollar maximum. Keep coverage continuous so money transmission authority does not lapse for lack of security.
Cost note
One hundred thousand dollars (or the higher calculated amount up to five hundred thousand) is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Floor
- $100,000 minimum surety bond
- Liability formula
- 100% of average daily Massachusetts money transmission liability for the most recently completed three-month period when higher
- Ceiling
- $500,000 maximum under G.L. c. 169B § 9(b)
- Authority
- Money Transmission Act, G.L. c. 169B; Division of Banks
Related resources
Frequently asked questions
Is every Massachusetts money transmitter’s bond only $100,000?
No. One hundred thousand dollars is the floor. If one hundred percent of your average daily Massachusetts money transmission liability for the most recent completed three-month period is higher, the amount rises with that liability until it reaches the five-hundred-thousand-dollar statutory maximum.
Do I still recalculate liability if I already post $500,000?
Section 9 says a licensee that maintains the maximum bond amount is not required to calculate average daily Massachusetts money transmission liability for purposes of that surety subsection. Confirm any other reporting the Division still expects at renewal.
Related Massachusetts bond guides
Mortgage Broker / Lender Bond
$75,000 (broker); $100,000–$500,000 (lender)
Massachusetts mortgage brokers licensed under G.L. c. 255E keep a seventy-five-thousand-dollar surety bond that stays in force while licensed. Mortgage lenders post a surety sized to Massachusetts residential loan volume—one hundred thousand, two hundred fifty thousand, or five hundred thousand dollars—under Division of Banks Regulatory Bulletin 5.2-101 and 209 CMR 42.00. Bonds are filed electronically through NMLS. A firm that holds both a broker and a lender license must keep both bonds in force. Mortgage loan originators are ordinarily covered by the sponsoring company’s bond; an individual twenty-five-thousand-dollar bond applies only when that coverage is unavailable.
Debt Collector Bond
$25,000
Massachusetts debt collectors licensed under G.L. c. 93 §§ 24–26 must maintain a twenty-five-thousand-dollar surety bond running to the state treasurer. Section 25 fixes that sum and conditions the bond on turning collection proceeds over as agreed. Licensing and related rules appear in 209 CMR 18, and applications run through the Division of Banks on NMLS. The Commissioner may require additional security when circumstances warrant.
Used Motor Vehicle Dealer Bond
$25,000
Massachusetts Class 2 used motor vehicle dealers must post a twenty-five-thousand-dollar surety bond—or equivalent proof of financial responsibility—under G.L. c. 140 § 58. The instrument runs for the benefit of retail buyers who suffer defined losses from title, payment, odometer, warranty, or deceptive-practice failures. Each distinct business name and each city or town where the dealer maintains a place of business needs its own bond. Municipal licensing authorities issue and renew Class 2 licenses and receive the bond or collateral filing.
Credit Services Organization Bond
$10,000+
A Massachusetts credit services organization may not charge or receive money before fully performing agreed services unless it maintains a surety bond of at least ten thousand dollars and has established a trust account at a federally insured bank or savings and loan association located in the commonwealth. G.L. c. 93 § 68B states that dual requirement. Organizations that do not take advance fees are outside the bond trigger in that section.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Massachusetts application
Massachusetts will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-11. This guide is based on verified educational content and official sources.
Agents Ready to Help
Share your agency checklist or bond form and we will confirm the agency, amount, and filing steps before issuing.
Talk to the pro →