Bond Of Escrow Licensee {DFPI-EL 303}

DFPI-EL 303 - BOND OF ESCROW LICENSEE. This form is required under Financial Code Section 17202 and serves as a surety bond for escrow companies seeking a license from the California Department of Financial Protection and Innovation (DFPI). This bond ensures that the escrow licensee (Principal) and its agents comply with the Escrow Law, properly handle all escrow funds, and fulfill their obligations. It provides financial protection to the Commissioner of Financial Protection and Innovation and any persons who may have legal claims against the escrow company. The bond is issued by a surety company, which guarantees payment if the licensee fails to meet its obligations. If the escrow company engages in misconduct, mismanages funds, or violates the Escrow Law, affected parties can file a claim against the bond to recover damages. The bond amount is determined according to Financial Code Section 17202, and its total liability is capped at that amount. The surety company can cancel the bond with 30 days' written notice to the DFPI and the Escrow Agents’ Fidelity Corporation. The bond requires that if any legal action is taken against the escrow licensee or if a claim is made, the Commissioner of Financial Protection and Innovation must be notified. The bond remains in effect until properly canceled or replaced. www.FormsWorkflow.com