Who requires it
Vermont Department of Financial Regulation — Money services
License & permit · Vermont
Vermont Money Transmitter Bond
Vermont money transmission licenses turn on security under 8 V.S.A. § 2541, added with the July 1, 2024 money-services rewrite. Applicants and licensees must keep a Commissioner-satisfactory surety—or, only with Commissioner approval, a qualifying deposit—that protects Vermont claimants and authorized-delegate exposure. Size the bond or approved deposit by taking the larger of one hundred thousand dollars and one hundred percent of average daily Vermont money transmission liability for the most recently completed three-month stretch, stopping at two million dollars. Companies already at that two-million-dollar ceiling need not keep recalculating average daily Vermont liability for this section. After you stop providing money services in Vermont, keep the security available for claims for at least five years, though the Commissioner may allow reductions as outstanding Vermont obligations shrink. File through NMLS on DFR’s money-services path.
Common bond amount
$100,000–$2,000,000
Greater of $100,000 or 100% of average daily VT liability (3-month), max $2,000,000 under 8 V.S.A. § 2541. Deposit may substitute with Commissioner approval.
How you file
File electronically through NMLS; Commissioner-approved deposit may replace the bond
Renewal
Keep in force while licensed. After you leave, keep it available for claims for at least 5 years unless the Commissioner allows an earlier reduction.
Who requires it
Applicants for and holders of Vermont money transmission licenses under 8 V.S.A. chapter 79 filing with the Department of Financial Regulation.
How much is required
Measure average daily Vermont transmission liability for the last finished three-month window. Post the higher of that number or $100,000, never forcing the standard rule above $2,000,000. Ask the Commissioner before substituting an approved deposit for the surety. Do not rely on older per-location add-on descriptions that conflict with § 2541.
How to get and file it
Confirm the § 2541 amount, arrange the surety or approved deposit in the exact licensee name, and complete the NMLS electronic surety bond process DFR requires. Leave security active for the life of the license. After Vermont money services cease, keep it available for claims for at least five years unless the Commissioner allows an earlier reduction as outstanding Vermont obligations shrink. Raise the amount when average daily Vermont liability climbs. Renew annually through NMLS.
Cost note
The formula result is the required bond amount, not the premium you pay. Approved deposits substitute collateral, not free coverage. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Standard formula
- Greater of $100,000 or 100% of average daily Vermont money transmission liability (latest 3 months)
- Statutory maximum under the formula
- $2,000,000
- Alternative
- Commissioner-approved deposit instead of bond
- After you leave Vermont money services
- Keep coverage available for claims for at least five years, unless the Commissioner allows an earlier reduction
Official sources
Related resources
Frequently asked questions
Why does the DFR money-services page mention $10,000 per location?
That description conflicts with the current statute. 8 V.S.A. § 2541, effective July 1, 2024, uses average daily Vermont liability with a $100,000 floor and a $2,000,000 ceiling. Use the statute for the amount.
Can I deposit funds instead of buying a surety?
Only with the Commissioner’s approval of a deposit that meets § 2541. Approval is not automatic.
Related Vermont bond guides
Lender / Mortgage Broker Bond
Lender $50,000–$150,000; broker $25,000–$100,000; solicitation ≥ $25,000
Vermont licensed lenders, mortgage brokers, mortgage loan originators, and loan solicitation companies file sureties under 8 V.S.A. § 2203 before the Department of Financial Regulation issues the matching license. The Commissioner sets amounts from Vermont loan-origination volume, subject to statutory minimums: licensed lenders post at least fifty thousand, one hundred thousand, or one hundred fifty thousand dollars depending on annual originations; mortgage brokers post at least twenty-five, fifty, seventy-five, or one hundred thousand dollars on a separate volume ladder; and loan solicitation licensees maintain at least twenty-five thousand dollars unless the Commissioner requires more. A single bond may cover multiple offices for the same person. Employed mortgage loan originators may rely on the licensed lender’s or broker’s bond when that instrument covers each originator in the prescribed amount. Sureties must give sixty days’ written notice before terminating. If a claim is filed, the Commissioner may require a new bond. If a claim is paid, restore the required amount right away. Lenders making only commercial loans fall outside this section. Separate liquid-asset showings apply to lender applicants and are not a substitute for the surety. The Commissioner may waive or modify bond or liquid-asset amounts in appropriate cases.
Debt Adjuster Bond
≥ $50,000
Vermont debt adjusters must file a surety with the license application under 8 V.S.A. § 2755. The statute sets fifty thousand dollars as the starting amount—or such greater amount as the Commissioner decides the applicant’s business circumstances require—on a form and terms the Commissioner directs. The bond protects Vermont claimants and secures faithful performance of the licensee’s obligations. The Commissioner may raise the amount after a pattern of bona fide consumer-complaint misconduct, or may increase or decrease it based on financial condition, business plan, number of locations, and the actual or estimated aggregate payments and fees debtors pay under debt-adjustment contracts. DFR’s debt-adjuster licensing page lists the fifty-thousand-dollar bond among application prerequisites and routes new company filings through NMLS.
Motor Vehicle Dealer Bond
$20,000–$35,000
Vermont will not issue a new or used motor vehicle dealer registration until the applicant posts financial security under 23 V.S.A. § 453(g). The statute accepts a surety bond, a letter of credit, or a certificate of deposit from an entity authorized to transact business in the same state, in an amount between twenty thousand and thirty-five thousand dollars based on units sold in the previous year on a schedule the Motor Vehicle Commissioner sets. Official Form VD-114 publishes that schedule: twenty thousand dollars for fewer than twenty-five vehicles, twenty-five thousand for twenty-five to one hundred, thirty thousand for one hundred one to two hundred fifty, and thirty-five thousand for two hundred fifty-one or more—or for any applicant who was not registered as a dealer in the immediately prior year. The security protects the State and buyers if the dealer collected fees or purchase-and-use tax but did not send them in. Keep it for the registration year plus one year after. Claims can be filed for one year after you stop or cancel, whichever comes first. The surety’s total payout cannot exceed the unremitted fees or tax.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Vermont application
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Last verified 2026-08-12. This guide is based on verified educational content and official sources.
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