Security. — Alaska Code § 06.55.104
Alaska Code § 06.55.104 — Security.. Reproduced from the official Alaska Statutes, with a citation summary, verification link, and related provisions.
§ 06.55.104. Security.
(a) Except as otherwise provided in (b) of this section, a surety bond, a letter of credit, or another similar security acceptable to the department in the amount of $25,000 plus $5,000 for each location, not exceeding a total addition of $125,000, must accompany an application for a money transmission license.
(b) Security must be in a form satisfactory to the department and payable to the state for the benefit of a claimant against the money transmission licensee to secure the faithful performance of the obligations of the money transmission licensee with respect to money transmission.
(c) The aggregate liability on a surety bond may not exceed the principal sum of the bond. A claimant against a money transmission licensee may maintain an action on the bond, or the department may maintain an action on behalf of the claimant.
(d) A surety bond must cover claims for as long as the department specifies, but for at least five years after the money transmission licensee ceases to provide money services in this state. However, the department may permit the amount of security to be reduced or eliminated before the expiration of that time to the extent the amount of the money transmission licensee's payment instruments or stored-value obligations outstanding in this state is reduced. The department may permit a money transmission licensee to substitute another form of security acceptable to the department for the security effective at the time the money transmission licensee ceases to provide money services in this state.
(e) Instead of the security prescribed in this section, an applicant for a money transmission license or a money transmission licensee may provide security in a form prescribed by the department.
(f) The department may increase the amount of security required to a maximum of $500,000 if the financial condition of a money transmission licensee requires the increase, as evidenced by reduction of net worth, financial losses, or other relevant criteria.
Source: official Alaska text · Last verified 2026-08-27
At a glance
- Citation: Alaska Statutes § 06.55.104
- Jurisdiction: Alaska
- Code: Alaska Statutes
- Subject: Security.
- Text: transcribed from the official source (verify below)
Verify the text
Statute text is transcribed from the official Alaska Statutes. Confirm it against the primary source before relying on it:
Not legal advice. Verify against the official source and consult a licensed Alaska attorney.
Common questions
What is the source of Alaska Statutes § 06.55.104?
The text above is transcribed from the Alaska Statutes, the codified statutes of Alaska. The official publisher link appears under "Verify the text" on this page.
What subject does Alaska Statutes § 06.55.104 address?
It addresses "Security.". Read the section together with the surrounding provisions listed under "Nearby provisions" for the full picture.
Is Alaska Statutes § 06.55.104 still in force?
Statutes are amended, repealed, and renumbered every session. Confirm the current version at the official Alaska source before relying on this text.
Can this page be used as legal advice?
No. This is a reference transcription for research. Applying Alaska law to your facts requires a licensed Alaska attorney who can review the specifics.