Who requires it
Financial Institutions Division — Collection agencies
License & permit · New Mexico
New Mexico Collection Agency Bond
New Mexico collection agencies and repossessors must file a surety bond with the Financial Institutions Division before a license issues or renews. NMSA 1978 § 61-18A-15 sets a five-thousand-dollar amount that the director may increase. 12.24.2 NMAC sizes renewals at the greater of five thousand dollars or two months’ average proceeds due clients from the prior licensing year, ordinarily capped at twenty-five thousand dollars unless the director requires stronger protection.
Common bond amount
$5,000–$25,000
Statutory $5,000; renewal greater of $5,000 or two months’ average client proceeds, generally max $25,000 (12.24.2.8 NMAC).
How you file
File with the Financial Institutions Division under the Collection Agency Regulatory Act
Renewal
Keep the bond active; recalculate at renewal; replace before a cancellation takes effect
Who requires it
Applicants for and holders of a New Mexico collection agency or repossessor license under the Collection Agency Regulatory Act.
How much is required
New licenses use the $5,000 minimum unless the director orders more. At renewal, 12.24.2.8 NMAC compares that minimum against two months’ average proceeds due clients and takes the greater figure, generally stopping at $25,000. Weak financial condition can lead the director to demand coverage equal to at least six months’ proceeds.
How to get and file it
Complete the Financial Institutions Division collection-agency license path, have a New Mexico–authorized surety issue a $5,000 (or higher ordered) bond, and file it with the division before the license issues. Keep the bond active with the license. If the surety cancels on 30 days’ written notice, replace the bond before it ends or the license ends. Recalculate the amount at renewal from prior-year average collections under 12.24.2 NMAC.
Cost note
Five thousand to twenty-five thousand dollars (or a higher director-ordered amount) is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Minimum
- $5,000
- Renewal formula
- Greater of $5,000 or two months’ average proceeds due clients
- Ordinary maximum
- $25,000 (director may require higher coverage)
- Also covers
- Repossessor licenses under the same bond statute
Official sources
Related resources
Frequently asked questions
When does a New Mexico collection agency bond exceed $5,000?
At renewal, if two months’ average proceeds due clients from the prior licensing year exceed $5,000, 12.24.2.8 NMAC requires that higher amount—generally up to $25,000—unless the director orders even stronger coverage.
What happens if my collection agency bond is cancelled?
Section 61-18A-15 provides that the license ends when the bond terminates unless a replacement bond is already on file. The director notifies the licensee after a surety withdrawal notice.
Related New Mexico bond guides
Mortgage Lender Bond
$50,000 / $100,000 / $150,000
New Mexico mortgage loan companies must post and maintain a surety bond with the Financial Institutions Division under NMSA 1978 § 58-21-7. New licenses start at fifty thousand dollars. On renewal, the amount steps to fifty thousand, one hundred thousand, or one hundred fifty thousand dollars based on annual New Mexico mortgage origination volume. Mortgage loan originators follow the same volume schedule under § 58-21B-17, but employees or exclusive agents of a licensed company may use the company’s bond instead of posting separately.
Money Transmitter Bond
$300,000–$2,000,000
New Mexico money transmission licensees under the Uniform Money Services Act must keep a surety bond, letter of credit, or similar security the director accepts. NMSA 1978 § 58-32-203 sets the amount at the greater of $300,000 or 1% of yearly New Mexico money-transmission volume—or the applicant’s projected first-year volume—capped at $2,000,000. The security protects people with claims against the licensee’s money-transmission obligations.
Notary Public Bond
$10,000
New Mexico notary applicants must submit a ten-thousand-dollar bond—or an accepted equivalent—before the Secretary of State issues a commission under NMSA 1978 § 14-14A-20. The bond covers acts performed during the commission term. A notary may notarize in New Mexico only while a valid bond remains on file with the Secretary of State.
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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