The QI File

Maine · 10 M.R.S. §§1396–1397 · not legal advice

Maine exchange-facilitator license

Maine licenses exchange facilitators. 10 M.R.S. §1396 requires a license from the administrator before a person may act as, or purport to act as, an exchange facilitator in the state. §1397 sets financial responsibility at $250,000 (bond, deposit, or qualified escrow/trust with dual written authorization) and E&O at $100,000 (or a deposit). Those dollars are the Maine figures on the cited sections. They are not California’s or Nevada’s. This page reports the Legislature’s text as fetched. It is not a finding that a named firm holds a current license. Overview:state QI bonding.

License

§1396(1): license required to engage in or purport to engage in the business, or act in the capacity, of an exchange facilitator in this State. Application in the form the administrator prescribes; the administrator may require licensing through the nationwide mortgage licensing system and registry. Initial application fee may not exceed $600; renewal may not exceed $500 (plus any NMLS processing fee). The licensee must maintain a home office as its principal location and may not do facilitator business at an unlicensed place or under a name other than the name on the license (§1396(4)).

The pages opened for this file name “the administrator” and do not print a bureau letterhead on the statute text. Ask the QI which Maine office issued the license and for the license number. This directory does not invent registration numbers.

Financial responsibility and E&O

§1397(1) — one or more of: $250,000 fidelity bond (insurer authorized in Maine); or $250,000 cash/securities/irrevocable LOC on deposit (interest to the facilitator); or all exchange funds in a (g)(3) qualified escrow or qualified trust with facilitator and client written authorization for withdrawals. Named-insured status on fidelity bonds totaling at least $250,000 satisfies the bond path.

§1397(2) — either: $100,000 E&O (insurer authorized in Maine) or a $100,000 deposit. Named-insured status on a $100,000 E&O policy satisfies the insurance path.

What to ask on a Maine file

  • Current §1396 license: issuing office, number, and renewal date.
  • Which §1397(1) path — $250,000 bond, deposit, or QEA/QTA — and current evidence?
  • $100,000 E&O or deposit certificate (named insured, expiry).
  • If the QI claims an exemption in §1396(5), which paragraph, in writing.

FAQ

Does Maine license exchange facilitators?

Yes. 10 M.R.S. §1396(1): a person may not engage in, carry on, or purport to engage in the business of, or act in the capacity of, an exchange facilitator in this State without first obtaining a license from the administrator. That is a Maine license, not a federal QI charter. The cited section does not print a public roster on the page we opened.

What are Maine’s bond and E&O minimums?

10 M.R.S. §1397: financial responsibility of $250,000 fidelity bond, or a $250,000 cash/securities/LOC deposit, or all exchange funds in a qualified escrow/trust under Treas. Reg. §1.1031(k)-1(g)(3) with facilitator and client written authorization for withdrawals. Separately, $100,000 E&O or a $100,000 deposit. Those are Maine’s figures on the cited sections — not a national schedule. Do not copy California’s $1 million / $250,000 pair onto a Maine file.

Are the Maine dollar amounts the same as California or Nevada?

No. Maine’s cited fidelity minimum is $250,000, not $1 million. Maine’s cited E&O minimum is $100,000, not $250,000. Ask for the current certificates on the file in front of you.

Who is exempt from the Maine license?

§1396(5) lists exemptions, including the taxpayer and disqualified persons, a financial institution, a title/escrow company acting solely as QEA/QTA and not facilitating, seminar teachers, a QI holding funds from property located outside Maine, a 100-percent EAT vehicle, Maine-licensed attorneys and CPAs not in a separate facilitator business, and other listed persons. Read the subsection; this page does not expand it.

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This is a QI custody explainer, not a securities offering and not legal advice. Statutes change.