Small Loans Act Surety Bond

The Alaska Division of Banking and Securities’ Small Loan Company application checklist specifies an original surety bond in the amount of $25,000. The bond is filed with the license application for a Small Loan Company license under the Alaska Small Loans Act (AS 06.20).

In Alaska, a Small Loan Company license applicant must file the Small Loans Act surety bond if they engage in the business of making loans of money or credit in amounts of $25,000 or less (and, per current Division guidance, certain related debt management/credit counseling activities that fall under the Division’s licensing requirements). The bond is filed with the Alaska Department of Commerce, Community, and Economic Development (DCCED), Division of Banking and Securities as part of the license application package.

Businesses and individuals that engage in the business of making loans of money or credit in the amount of $25,000 or less in Alaska, and entities providing debt management and credit counseling services that fall under the Alaska Small Loans Act licensing requirements.

The Alaska Division of Banking and Securities requires an original surety bond with a $25,000 penal sum to be submitted as part of the Small Loan Company license application (see AS 06.20.050 and the Division’s Small Loan Company application checklist/forms).

The Alaska Small Loans Act bond amount is $25,000, as required by AS 06.20.050 and the Division of Banking and Securities small loan company application checklist. The bond must be filed with the license application and maintained/renewed as required by the regulator.

Alaska’s Small Loans Act requires applicants for a Small Loan Company license to file a surety bond in the penal sum of **$25,000** with the Alaska Department of Commerce, Community, and Economic Development (Division of Banking and Securities). The bond is required **as part of the license application** and must be maintained as long as the license is active (and may need to remain in force until outstanding loans and related disputes are resolved, per statute and Division requirements).

The obligee is the State of Alaska regulatory authority that requires the bond—specifically, the Alaska Department of Commerce, Community, and Economic Development (DCCED), Division of Banking and Securities. The bond protects the State and consumers by providing a financial remedy if the licensee violates the Small Loans Act.

The bond is a financial guarantee to the Alaska Department of Commerce, Community, and Economic Development, Division of Banking and Securities that the licensee will comply with the Alaska Small Loans Act (AS 06.20) and applicable regulations. If the licensee violates the law and causes covered losses, an injured party may make a claim against the bond up to the bond’s penal sum (e.g., $25,000), and the surety may seek reimbursement from the bonded principal.