(1) Coverage, form and regulations. Each mortgage loan originator shall be covered by a surety bond in accordance with this section. In the event that the mortgage loan originator is an employee or exclusive agent of a person subject to the Alabama Consumer Credit Act or Mortgage Brokers Licensing Act, the surety bond of such person subject to the Alabama Consumer Credit Act or Mortgage Brokers Licensing Act can be used in lieu of the mortgage loan originator's surety bond requirement.
(a) The surety bond shall provide coverage for each mortgage loan originator in an amount as prescribed in subsection (2).
(b) The surety bond shall be in a form as prescribed by the supervisor.
(c) The supervisor may promulgate rules or regulations with respect to the requirements for such surety bonds as are necessary to accomplish the purposes of this chapter.
(2) Penal sum of surety bond. The penal sum of the surety bond shall be maintained in an amount that reflects the dollar amount of loans originated as determined by the supervisor.
(3) Action on bond. When an action is commenced on a licensee's bond the supervisor may require the filing of a new bond.
(4) New bond. Immediately upon recovery upon any action on the bond the licensee shall file a new bond.
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