Consumer Installment Loan Bond

Arizona Consumer Lender Bond

DIFI consumer lender bond sized to yearly disbursements

Arizona consumer lenders furnish a cash or surety bond under A.R.S. § 6-704 based on prior-year disbursements.

Overview

What Is a Arizona Consumer Lender Bond?

An Arizona consumer lender bond is the DIFI surety or cash bond required with a consumer lender license application.

Key Provisions
  • Guarantees compliance with A.R.S. § 6-704
  • Protects the obligee named on the Arizona bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under A.R.S. § 6-704 up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
People of the State of Arizona
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

A claim may arise if the principal fails to comply with the bonded Arizona obligation or causes covered loss to the obligee or protected parties.

If a claim is valid

If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.

Scope of the Obligation
  • Comply with A.R.S. § 6-704
  • Satisfy People of the State of Arizona filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Businesses licensed as Arizona consumer lenders that disburse consumer loan funds need this bond.

Who Is Required to File
  • Applicants required by Arizona Department of Insurance and Financial Institutions (DIFI)
  • Arizona businesses renewing or expanding licensed activity
  • Out-of-state firms filing into Arizona markets
Requirements

What You Need to Apply

Match the A.R.S. § 6-704 disbursement tier and file the DIFI-acceptable bond with your license application.

Required Documentation
  1. Legal entity name matching the license or filing
  2. Bond amount: Less than $100,000 disbursed: $5,000
  3. $100k-$250k: $10,000
  4. $250,001-$500k: $15,000
  5. $500,001-$1M: $20,000
  6. more than $1M: $25,000
  7. Arizona obligee form or statute citation
  8. Owner or officer identification for underwriting
Filing

How this filing works

  1. 01

    Confirm the Arizona requirement

    Share your license type, court order, or obligee form and the exact penal sum required by Arizona Department of Insurance and Financial Institutions (DIFI).

  2. 02

    Underwrite and price

    We review credit and filing details, then quote premium options through licensed surety markets.

  3. 03

    Issue and file

    Once approved, we issue the bond for delivery to People of the State of Arizona or for your Arizona filing package.

FAQ

Frequently Asked Questions

What is the required amount for an Arizona consumer installment loan bond?

The amount is Less than $100,000 disbursed: $5,000; $100k-$250k: $10,000; $250,001-$500k: $15,000; $500,001-$1M: $20,000; more than $1M: $25,000, as set under A.R.S. § 6-704 and confirmed with Arizona Department of Insurance and Financial Institutions (DIFI).

Who is the obligee on an Arizona consumer installment loan bond?

The obligee is typically People of the State of Arizona. Always match the exact name on the Arizona form.

How long does it take to get the bond?

Many Arizona filings can be underwritten the same day when documents and credit are complete; complex amounts may take longer.

Does bad credit prevent approval?

Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.

How do I renew the bond?

Most bonds renew on the term shown (1 Year). Keep continuity so your Arizona license or filing does not lapse.

Authority Resources

Arizona Department of Insurance and Financial Institutions (DIFI)

difi.az.gov

Next step

Ready to file this bond?

We’ll match the requirement and route the application.

Apply for this bond

Or call (877) 477-7578