# 5 Del. Admin. Code § 2204: 5 DE Admin. Code 2204. Required Amount of Licensed Lender’s Surety Bond or Irrevocable Letter of Credit

> Delaware · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2204

## Section

- **Citation:** 5 Del. Admin. Code § 2204
- **Heading:** 5 DE Admin. Code 2204. Required Amount of Licensed Lender’s Surety Bond or Irrevocable Letter of Credit
- **Jurisdiction:** Delaware
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Delaware Administrative Code / Title 5 Banking / 2200 Licensed Lenders / 5 DE Admin. Code 2204

## Text

Annual Volume of Delaware Loans | Minimum Required Amount of Surety Bond or Irrevocable Letter of Credit
not more than $23,000,000 | $50,000
$23,000,001 - $35,000,000 | $75,000
$35,000,001 - $47,000,000 | $100,000
$47,000,001 - $59,000,000 | $125,000
$59,000,001 - $71,000,000 | $150,000
$71,000,001 - $83,000,000 | $175,000
$83,000,001 and over | $200,000
5 Del.C. §2208
Effective Date: April 11, 2014
1.0 Bond or Irrevocable Letter of Credit Required
Each licensee shall file with the State Bank Commissioner (the “Commissioner”) an original corporate surety bond or an irrevocable letter of credit, in a form satisfactory to the Commissioner, in accordance with 5 Del.C. §2208 . The minimum amount of the surety bond or irrevocable letter of credit is based on the factors identified in that section.
2.0 Amount of Bond or Irrevocable Letter of Credit
2.1 Each licensee shall obtain a surety bond or irrevocable letter of credit in an amount that correlates with the licensee’s volume of Delaware lending for the year ending December 31 that precedes the effective year of the license under 5 Del.C. Ch. 22 . A licensee who obtains a surety bond that is effective for more than one year or an irrevocable letter of credit shall annually review the amount of the surety bond or irrevocable letter of credit as of December 31 of each year to ensure that the minimum required amount is maintained. The minimum required amount of the surety bond or irrevocable letter of credit shall be maintained according to the following table:
2.2 The Commissioner may require a licensee to obtain a larger surety bond or irrevocable letter of credit based upon the licensee’s individual circumstances.
3.0 Bond for Mortgage Loan Originators
3.1 A licensee may use its surety bond under 5 Del.C. Ch. 22 to cover mortgage loan originators licensed under 5 5 Del.C. Ch. 22 and who are its employees or exclusive agents if the bond conforms to all requirements of 5 Del.C. §2415 and §12.0 of Regulation 2401
er surety bond or irrevocable letter of credit based upon the licensee’s individual circumstances.
3.0 Bond for Mortgage Loan Originators
3.1 A licensee may use its surety bond under 5 Del.C. Ch. 22 to cover mortgage loan originators licensed under 5 5 Del.C. Ch. 22 and who are its employees or exclusive agents if the bond conforms to all requirements of 5 Del.C. §2415 and §12.0 of Regulation 2401.
3.2 A licensee’s irrevocable letter of credit may not be used to cover mortgage loan originators.
3.3 A licensee shall notify the Commissioner in writing of the names of the mortgage loan originators who are covered by its surety bond and of any change in such coverage for those originators.
17 DE Reg. 994 (04/01/14)

## Nearby sections

- [5 Del. Admin. Code § 2107/2208-1 5 DE Admin. Code 2107/2208-1. 2107/2208 Guidance On Nontraditional Mortgage Product Risks](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2107_2208_1.md)
- [5 Del. Admin. Code § 2108/2209-1 5 DE Admin. Code 2108/2209-1. 2108/2209 Statement on Subprime Mortgage Lending](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2108_2209_1.md)
- [5 Del. Admin. Code § 2201 5 DE Admin. Code 2201. Licensed Lenders Operating Regulations](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2201.md)
- [5 Del. Admin. Code § 2202 5 DE Admin. Code 2202. Licensed Lenders Minimum Requirements for Content of Books and Records](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2202.md)
- [5 Del. Admin. Code § 2203 5 DE Admin. Code 2203. Licensed Lenders Regulations Itemized Schedule of Charges](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2203.md)
- [5 Del. Admin. Code § 2204 5 DE Admin. Code 2204. Required Amount of Licensed Lender’s Surety Bond or Irrevocable Letter of Credit](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2204.md)
- [5 Del. Admin. Code § 2205 5 DE Admin. Code 2205. Report of Delaware Loan Volume](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2205.md)
- [5 Del. Admin. Code § 2206 5 DE Admin. Code 2206. Report of Delaware Assets](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2206.md)
- [5 Del. Admin. Code § 2207 5 DE Admin. Code 2207. Exemption of Licensed Lenders](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2207.md)
- [5 Del. Admin. Code § 2210 5 DE Admin. Code 2210. Short-Term Consumer Loans](https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2210.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_DE_ADC_T5_2204. Check the current official text before relying on it. Not legal advice.