Riders and Endorsements for Electronic Surety Bonds (ESBs)

Riders and endorsements modify existing Electronic Surety Bonds (ESBs) in NMLS. They are used to update, extend, or clarify bond terms without replacing the original bond.

About this task

In NMLS, a rider or endorsement is an amendment to an existing Electronic Surety Bond (ESB). Riders are typically issued to change a bond amount, modify license coverage, update names, or reflect other material adjustments that do not require a new bond record. Both surety companies and surety bond producers can create and manage riders, depending on their assigned NMLS roles and the terms of their association.

Note: Each rider is linked directly to a parent bond record. When a rider is created, it inherits the same licensee, bond number, and regulator association as the original bond.

Procedure

  1. Sign in to NMLS using an account with Manage Bonds or Manage and Sign Bonds permissions.
  2. Open the Tasks tab and select Electronic Surety Bonds, then choose Create Rider.
  3. Search for the bond you want to modify by entering the bond number or licensee name, then select Next.
    Note: Only bonds that are active or pending execution appear in the search results. Bonds already canceled or voided cannot have riders created.
  4. Select the rider type from the drop-down list (for example, Increase Bond Amount, Change Name, Extend Expiration).
    Note: The list of available rider types is determined by the bond’s regulator and may vary by state or license type.
  5. Enter all required rider details, including the effective date and revised bond information, then click Save.
    Note: Each rider automatically references the original bond number. The system records both the prior and updated values for audit purposes.
  6. Submit the rider for execution and representative signature, if required.
    Note: Once the rider is executed, it is delivered electronically to the regulator for review. The parent bond record remains active and is updated to reflect the rider’s changes.
  7. Confirm the rider’s status from the Managed Bonds list.
    Note: Riders appear as individual line items beneath their associated bond record, with a status of Pending Execution, Delivered to Regulator, or Active.

What to do next

Tips for creating and managing riders

  • Verify that the requested rider type is permitted by the regulator before submission.
  • Ensure bond values and effective dates entered in the rider align with the regulator’s requirements and the licensee’s coverage needs.
  • Only one active rider can be pending for a bond at a time. Complete or withdraw any existing rider before submitting another.
  • After regulator acceptance, confirm that the updated information appears on the licensee’s record and the Managed Bonds page.
Note: Riders and endorsements are permanent amendments to an existing bond record and cannot be deleted. Any corrections must be performed by submitting a new rider or regulator-directed revision.