The MLC’s Retailer Rules and Regulations require that the initial bond amounts established per store location will be “subject to later adjustment by the MLC.” That adjustment will occur on August 1, 2020, which will also mark the beginning of the MLC’s annual renewal cycle for all Retailer bonds and letters of credit moving forward. The adoption of an annual renewal period will ensure that all bonds will be renewed at the same time each year.
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. Annual notifications and renewals will also be managed by the Group Provider.
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 Group Provider.
Yes, but the Group Provider will provide all required documentation 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.
Bond Renewals for the coming Annual Bond Renewal Period must be valid through July 31, 2021. If you have a current bond that is valid beyond August 2020, you may be able to purchase extended coverage from your current bond issuer through July 31, 2021, but the amount of the bond for the extension must still be no less that the required Bond Renewal Amount given in your Bond Renewal Letter.
All bonds or letters of credit must be renewed on August 1 of every year and must remain in force and valid through July 31 of the following year.