If you are engaged in a business of selling or offering to sell any instrument for the purposes of effecting payments to third parties, you are required under the Utah Code Annotated section 7-1-501(8)(c) to file a Utah Third-Party Payment Bond as a condition of licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Utah Third-Party Payment Bond holds you accountable for your business decisions.
By possessing a Utah Third-Party Payment Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.