# Bonds and net worth for money transmitters How surety bonds attach to an MTL, how the bond amount scales with transmission volume, and how minimum net worth interacts with the bond. ## What you will learn - How MTL bond amounts are typically set and tiered - Why permissible investments and net worth sit alongside the bond - What underwriting on an MSB principal usually looks at ## Bonds attach to the license, per state Each MTL generally carries its own [[term:surety-bond]] written to the state's statutory form. Most states size the bond as a tiered function of in-state transmission volume, with a floor (commonly in the low six figures) and a cap (commonly in the low millions). A multi-state transmitter carries a portfolio of bonds, not a single master bond, and the renewal dates rarely line up. ## Net worth and permissible investments sit alongside the bond MTLs are unusual among state licenses in that the bond is only part of the financial cushion the state requires. Most states also set a minimum tangible net worth (often six or seven figures, scaled to volume) and a permissible-investments rule that requires the transmitter to hold liquid assets equal to outstanding customer obligations at all times. The bond, the net worth floor, and the permissible-investments coverage are three separate tests the transmitter passes continuously. ## Underwriting on the principal Surety underwriting on an MSB principal looks at audited financials, the [[term:control-person]] list and their personal credit, the BSA/AML program, and the product mix. Virtual currency exposure, payroll exposure, and any history of regulator actions all move the premium. Newer transmitters with thinner balance sheets sometimes post collateral to the surety in addition to the premium. The estimator below sizes the bond portfolio for an MTL footprint: pick the bond type, the states you intend to operate in, and a credit range to see typical annual premiums. [[tool:bond-cost-estimator]] ## FAQs ### Can the same bond cover multiple states? Almost never. Each state requires its own bond on its own form. A handful of states accept a multi-state model form developed through the [[term:nmls]] working groups, but the obligee and face amount are still per state.