What is the required bond amount for a business entity licensed through the DFI with an annual origination volume of $5 million?

The correct bond amount for a business entity licensed through the Department of Financial Institutions (DFI) in Utah, with an annual origination volume of $5 million, is indeed $12,500. This figure is significant because it reflects the state's regulatory requirements designed to protect consumers and ensure financial responsibility among lenders.

The bond serves as a form of insurance that guarantees compliance with state laws and regulations and can be utilized in the event of any wrongdoing or failure on the part of the business entity. By establishing a tiered bond structure based on origination volume, the DFI aims to align the bond amount with the potential risk associated with the lending activities of the entity.

Higher origination volumes typically result in a higher bond requirement; however, for an annual origination volume of $5 million, $12,500 is the specific threshold set to balance adequate consumer protection without imposing undue financial burdens on responsible businesses. This regulatory framework fosters a healthy lending environment in Utah while encouraging ethical business practices within the industry.