If your renewal bond amount has increased, it means that your sales have been so strong that the initial bond amount would not sufficiently cover your current average financial obligations to the MLC during a routine 10-day sweep period.
Yes, every retailer has the option to renew their bond using their current surety bond provider (or their bank if a letter of credit is being provided instead of a surety bond).
The Group Provider Option offers convenience and competitive group rate premiums.
While most Retailers will be approved, the Group Provider Option does not offer guaranteed acceptance.
You will still be able to renew by providing a letter of credit from any FDIC-insured bank. The letter of credit must state a dollar amount that is at least equal to the renewal amount shown in your Renewal Letter.
Renewal Bond Amounts are based on a value that would sufficiently cover your current and projected financial obligations to the MLC during a routine 10-day sweep period during the coming annual bond period.
The MLC will receive no fees or compensation of any kind for making this convenience available to Retailers.
No, Bond Renewal Amounts will be reviewed and adjusted for every Annual Bond Renewal Period going forward. You will be notified in writing of your Renewal Bond Amount prior to each future Annual Bond Renewal Period.
If you are a Retailer with multiple store locations, you will be able to submit a single bond for the required renewal amount so long as your bond includes an attached Schedule listing all of the physical store locations at which you are selling MLC products. The Group Provider Option will offer “Schedule Bonds” for Retailers with more than one store location.
Yes, if you are currently approved as an MLC Retailer with more than one store location, you can apply for the Group Provider Option in a single application.
You will be able to pay the Group Provider premium with a single check for the premium amount shown in your Bond Renewal Letter or for the premium amount quoted if you call the Group Provider directly for a premium quote.
For all Retailers who choose to participate in the Group Provider Option, annual notifications and bond renewals will also be managed by the MLC Customer Support Department..
Yes, these documents are sent to the retailer therefore they will need to be mailed to the MLC. If the retailer receives an original bond or a rider from the Group Provider, these documents will have to be signed before being sent to the MLC.
No. If you were required to provide an additional bond as a credit enhancement, you will still need to obtain your credit enhancement bond separately.
Bond Renewal Amounts will be reviewed and adjusted for every Annual Bond Renewal Period going forward. You will be notified in writing of your Renewal Bond Amount prior to each future Annual Bond Renewal Period.
If your Bond Renewal Amount changes again for future Annual Bond Renewal Periods, your premium for the bond will likely also change. The minimum premium of $100 will always apply if you participate in the Group Provider Bond Option.
In most cases, approval by the Group Provider will occur within a few days of receiving your application and premium check.
Any MLC Retailer interested in the Group Provider Option may confirm or request a quote or obtain additional information by contacting:
Lawanda Gardner at Meyer and Rosenbaum, Inc. at (601) 693-6141