What must happen immediately after recovery on a Delaware MLO bond action?
Correct Answer
A) The licensee must file a new bond
Delaware Code states that immediately upon recovery on any action on the bond, the licensee shall file a new bond.
Why This Is the Correct Answer
Delaware Code states that immediately upon recovery on any action on the bond, the licensee shall file a new bond.
Why the Other Options Are Wrong
Option B: The licensee is exempt from all future bond requirements
Recovery does not exempt the licensee from future bond requirements.
Option C: The borrower must file the new bond
The borrower is not responsible for filing the licensee’s new bond.
Option D: The licensee can wait until the next 5-year retest period
The requirement is immediate, not tied to a 5-year retest period.
Memory Technique
DE-C013 -> Delaware-surety-bond
Exam Tip
Bond recovery means a new bond must be filed immediately.
Common Mistakes to Avoid
- -Importing another state requirement into Delaware
- -Confusing NMLS baseline requirements with Delaware-specific rules
- -Treating operational assumptions as legal authority
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