Who must be licensed under this Act?
Any person, other than a
financial institution or other person subject to the general
supervision or regulation of the commissioner pursuant to Title 6 or
Title 9 of the Louisiana Revised Statutes of 1950, as amended, who
engages in business as a bond for deed escrow agent.
Who is eligible for a license?
Each applicant shall
possess and maintain a net worth of $25,000.
Further, the financial condition, business
experience and background of the applicant shall be such as to
reasonably warrant the commissioner's belief that the applicant's
business shall be conducted honestly, carefully, and efficiently.
How long does it take to get licensed?
If all information and
documentation are submitted correct at the initial receipt of the
application then normal licensure time is approximately 4 to 6
It is imperative for all applicants to
be as thorough and timely in the submission of their application for
licensure in order for the Office to efficiently expedite the
Please remember that you, the applicant,
control the licensure time by your thoroughness and correctness in
filing the initial application.
How much does a license cost?
nonrefundable license fee is $150.
Annually, thereafter, the fee is $100.
When are the renewal fees due?
15th of each year.
May an applicant operate while waiting for licensure?
No person shall engage
in the business of bond for deed escrow agent without first having
been licensed by this office.
May a licensee operate in more than one location?
Yes, but your
application must include all addresses from which you operate.
What if a licensee wishes to change his name, business location or
All licenses are
nontransferable. A licensee shall
give 30 days prior written notification to the Office of Financial
Institutions of any change in name, business location or any
ownership changes of 25 percent or more of its outstanding voting
securities or equity ownership.
A change in ownership of more than 50 percent
shall require the acquiring person to apply for a new license.
What if I cease doing business as a Bond For Deed agent?
No licensee shall cease doing business without
providing 30 days prior written notification to the commissioner and
shall also provide therewith evidence of full compliance with all
applicable laws and regulations.
10. What are the bonding requirements?
The initial surety bond,
irrevocable letter of credit, OR deposit in escrow with any
federally-insured financial institution shall be written in favor of
the Office of Financial Institutions for the amount of $10,000.
The amount of the bond may fluctuate in future
years depending upon several factors relating to the business
activities of the licensee but never less than $10,000.
11. What other requirements must a licensee meet?
There are record keeping and retention rules to
Books, records and accounts shall be
maintained separate and apart from any other business in which the
bond for deed escrow agent is involved and shall be kept at the
licensed location unless otherwise permitted in writing by the
Each licensed bond for deed escrow agent
shall maintain a record of all bond for deed transactions and escrow
agent agreements effected by him/her for a period of 3 years
following the expiration or termination of such escrow agent
An escrow deposit account must be established
for the sole purpose of receiving the proceeds of monthly payments
paid to the licensee by a buyer.
12. Are there fees assessed by the Office of Financial Institutions for
the examination of my company?
The examination and/or visitation fee is $50
per hour per examiner payable within 30 days of the assessment.
13. Who are the people with whom I'll be interacting?
The Commissioner of
Financial Institutions, John Ducrest, is responsible for all the
facets of the agency. Chief Examiner
Darin Domingue oversees all operations in the Non-Depository Division. Deputy Chief
Examiner Dale Babin handles questions regarding examinations.
Deputy Chief Examiner Michelle Jeansonne is in
charge of the administrative review of the application.
Of course, all employees are willing to assist
you in any way possible. If you have any
questions, please call Michelle Jeansonne at (225) 925-3828.
June 25, 2015