PDFWAC 460-33A-040

Net worth or bond requirement.

(1) All persons and entities meeting the definition of a mortgage broker-dealer must meet and maintain one of the following at all times:
(a) A minimum tangible net worth, as determined by generally accepted accounting principles, of the greater of one hundred thousand dollars or ten percent of the amount of securities registered pursuant to this chapter up to a maximum of one million dollars; or
(b) File a surety bond in a form acceptable to the securities administrator with a face amount of the greater of one hundred thousand dollars or one percent of the amount of securities registered pursuant to this chapter up to a maximum of two hundred fifty thousand dollars; or
(c) In the event the mortgage broker-dealer and any affiliate does not handle the funds of investors and borrowers, minimum tangible net worth of five thousand dollars, as determined by generally accepted accounting principles.
(2) Every mortgage broker-dealer must maintain a positive net worth, as determined by generally accepted accounting principles, at all times.
(3) Every mortgage broker-dealer that fails to comply with the net worth requirements set forth in this section must inform the securities division of such failure within seventy-two hours at which time all sales of securities must be suspended.
[Statutory Authority: RCW 21.20.060, [21.20].070, [21.20].090, [21.20].100, [21.20].180, [21.20].210, [21.20].250, [21.20].270, and [21.20].450. WSR 12-11-087, § 460-33A-040, filed 5/17/12, effective 6/17/12. Statutory Authority: RCW 21.20.450. WSR 01-23-002, § 460-33A-040, filed 11/7/01, effective 12/8/01. Statutory Authority: RCW 21.20.045. WSR 92-18-009, § 460-33A-040, filed 8/21/92, effective 9/21/92. Statutory Authority: RCW 21.20.060 and 21.20.450. WSR 86-21-107 (Order SDO-140-86), § 460-33A-040, filed 10/20/86. Statutory Authority: RCW 21.20.450. WSR 83-03-025 (Order SDO-7-83), § 460-33A-040, filed 1/13/83.]