Businesses operating under the Tennessee Industrial Loan and Thrift Act (ILTA) are required to post a surety bond in compliance with Tennessee Code Annotated §45-5-203(c) and (d). This bond serves as a financial guarantee that the licensed entity will comply with all provisions of the Act and protects the public from potential financial harm caused by non-compliance or misconduct.

What Is the Tennessee ILTA Surety Bond?

The Tennessee Industrial Loan and Thrift Surety Bond is a mandatory licensing requirement for any business or lender offering small-dollar installment loans under the ILTA. It is a form of consumer protection that assures the state and borrowers that the lender will adhere to the law, pay all obligations, and handle funds appropriately.

Statutory Requirements: T.C.A. §45-5-203(c) and (d)

Under Tennessee Code Annotated (T.C.A.):

• §45-5-203(c): Requires each applicant for an industrial loan and thrift certificate of registration to file a surety bond with the commissioner of the Department of Financial Institutions.
• §45-5-203(d): Allows the commissioner to determine the bond amount based on the dollar volume of loans made or anticipated.

Full statutory details can be found in the Tennessee Industrial Loan and Thrift Act PDF or through the Tennessee Department of Financial Institutions.

Who Needs This Surety Bond?

You are required to obtain this bond if your business:

• Provides consumer loans of $100 or more but less than $15,000 (including charges)
• Operates as an installment lender under the TN ILTA
• Seeks licensure from the Tennessee Department of Financial Institutions

Bond Amount and Terms

The bond amount is determined by the Commissioner of the Department of Financial Institutions and may vary depending on the scope and size of operations. Typical features include:

• Minimum Bond Amount: $50,000
• Maximum Bond Amount: May increase based on volume of loans or at the commissioner's discretion
• Term: Renewable annually on June 30th

Conditions of the Bond

According to T.C.A. §45-5-203, this bond ensures that:

• The licensee operates in compliance with all rules under the Tennessee ILTA
• Borrowers have financial recourse if harmed by the lender’s unlawful activity
• The state can recover penalties or unpaid obligations from the bond

Cancellation and Claims

• Cancellation Notice: Typically requires 30 days written notice by the surety company to the Department of Financial Institutions
• Claims Process: Consumers or regulators may file claims against the bond for unlawful conduct, unpaid obligations, or breach of statutory duty

How to Apply for the TN ILTA Surety Bond

Applying is fast, secure, and easy through A1SuretyBonds.com. As a leading provider of licensing surety bonds nationwide, we streamline the process for legal and financial professionals in Tennessee.

Why choose A1SuretyBonds?

• Instant quotes from multiple A-rated surety carriers
• Low rates starting at just 1% of the bond amount*
• Secure online application and e-signature options
• Responsive customer support from surety bond experts

Apply for Your Tennessee Industrial Loan and Thrift Bond Now

Additional Resources

• Tennessee Department of Financial Institutions
• Full Text of Tennessee ILTA
• Contact A1SuretyBonds for licensing and bonding assistance

*Rates vary based on applicant’s credit, bond amount, and underwriting requirements.