# What happens if my money transmitter surety bond lapses? **Direct answer:** A lapsed surety bond puts your money transmitter license out of compliance, the state can suspend or revoke the license, and you generally must put a replacement bond in place and file proof with the state before you can keep transmitting. Every state money transmitter license is conditioned on maintaining a surety bond in the amount the state sets, often scaled to transaction volume. The surety can cancel a bond for nonpayment or other reasons, usually after sending a cancellation notice, and a canceled or lapsed bond breaks a core condition of the license. ## Why the bond is load-bearing The surety bond is not paperwork the state files away. It is a standing condition of the license that protects consumers if the transmitter fails. When the bond lapses, the license no longer rests on the protection the statute requires, so the state treats the license as out of compliance. ## How a lapse usually unfolds A surety typically issues a cancellation notice before a bond ends, often giving the state and the licensee a set number of days of warning. That notice period is the window to secure a replacement bond. If it passes without a replacement on file, the state can move to suspend or revoke the license. ## Multi-state exposure A transmitter licensed in several states holds a bond requirement in each. If a single surety relationship ends, every state tied to that bond can fall out of compliance at once, so the replacement has to be filed with each affected state. ## What to do now 1. **Act on the cancellation notice immediately.** Treat the surety's cancellation notice as a countdown. The days it gives you are the window to put a replacement bond in place before the state acts. 2. **Secure a replacement bond in the required amount.** Bind a new surety bond that matches the amount each affected state requires, including any volume-based scaling. 3. **File proof of the new bond with every affected state.** Submit the new bond, often through NMLS, to each state where the lapsed bond applied, so each license record shows continuous coverage. 4. **Confirm the license returned to good standing.** Verify in NMLS that each state has accepted the replacement and that no suspension or revocation action remains open. ## Frequently asked questions ### Will my license be revoked if the surety bond lapses? It can be. A lapsed bond breaks a condition of the license, and the state can move to suspend or revoke it. Filing a replacement bond before the cancellation period ends is what usually prevents that. ### How much warning does a surety give before a bond cancels? Sureties typically send a cancellation notice with a set number of days of warning to the state and the licensee. That notice period is the window to bind and file a replacement bond. ### Can I keep transmitting while the bond is lapsed? No. With the bond lapsed the license is out of compliance, so you should stop transmitting in the affected state until a replacement bond is on file and the license is back in good standing. ### What if I am licensed in several states on one bond relationship? If a single surety relationship ends, every state tied to that bond can fall out of compliance at the same time. A replacement generally must be bound and proof filed with each affected state.