N.Y. Banking Law § 599-k: Required surety bond

§ 599-k. Required surety bond. 1. 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 an originating entity, the surety bond of such person may be

used to satisfy the mortgage loan originator's surety bond requirement;

provided that such surety bond contains coverage for each mortgage loan

originator not otherwise covered by a qualifying surety bond in an

amount prescribed in subdivision two of this section. The surety bond

shall be in a form prescribed by the superintendent. The superintendent

may promulgate rules or regulations with respect to the requirements for

such surety bonds as are necessary to accomplish the purposes of this

article.

2. The penal amount of the required surety bond shall be maintained in

an amount that reflects the dollar amount of loans originated by the

mortgage loan originator as determined by the superintendent.

3. When an action is commenced on a licensee's bond, the

superintendent may require the filing of a new or supplemental bond.

4. Immediately upon recovery upon any claim or action on or under the

bond, the mortgage loan originator (or the originating entity as the

case may be), shall file a new or supplemental bond restoring the face

amount of the bond to the amount required by the superintendent.