Special Cases for Electronic Surety Bonds (ESBs) in NMLS

Overview of exceptions to the standard ESB workflow in NMLS, including returned bonds, bond form version upgrades, and Revised Form Bond requirements. Applies to both Surety Companies and Surety Bond Producers.

This topic explains how NMLS handles situations that are not part of routine bond creation and maintenance. These special cases are initiated by regulators or by system rules that require additional actions before a bond can proceed.

Returned to Surety by Regulator

A regulator can return a bond to the surety with a stated reason. The returned bond is captured as a snapshot with a “Returned to Surety” watermark. Common return reasons include, but are not limited to:

  • Incorrect license type or licensee name
  • Incorrect bond amount, bond number, or effective date
  • Incorrect signatory
  • Incorrectly listed underwriting surety company
  • Incorrect converted bond information or indicator
  • Duplicate or unnecessary bond

After a return, the surety can amend and resubmit the bond through the normal signing process or void the bond. If a returned bond is voided, the bond number can be reused.

Riders on Returned Bonds

All riders associated with a returned bond are automatically voided by the system. Delivered riders appear in the returned snapshot. Pending riders do not. Changes from prior riders can be incorporated into the resubmitted bond or recreated through new riders after resubmission.

Bond Form Version Upgrades

When a regulator requires an updated bond form version, undelivered bonds must be upgraded to the latest version before delivery. NMLS displays an upgrade message on the bond’s manage page and provides a guided action to complete the upgrade, after which the bond must be re-signed and proceed through the standard execution steps.

Note: Regulators can also require delivered bonds to be revised to a new form version. If required, surety entities are notified in advance and may receive license items to track completion.

Revised Form Bond Requirement

Some changes require issuing a Revised Form Bond. NMLS notifies impacted organizations and provides filtering to locate bonds that require revision. Users initiate the revision from the bond’s manage page, confirm the term acceptance date, complete attestation, and re-sign. The process completes when both parties have signed the revised form.

Notifications and Reporting

Notifications are sent to the appropriate organizations based on who created the bond. Returned bonds, rider voiding due to return, and voided returned bonds appear in the Surety Bond Transaction Report so users can audit activity.

Scope and Roles

Surety Companies and Surety Bond Producers see similar prompts and actions during these special cases. Certain actions, such as voiding a returned bond, are available to Surety Companies and not to Surety Bond Producers.