Surety Bond News

New legislation was introduced on 2/3/2009 in Oregon State relating to special events brewery public house licenses. The new law, which is referred to as HB 2528, requires a $300,000 liquor liability policy or a surety bond in order to acquire a special events brewery public house license for public proceedings anticipated to draw more than 300 customers per day. The license has a short duration of five days. HB 2528 was enacted on May 26th, 2009.

There is a new bill that was enacted concerning off-highway vehicle dealers in Nevada State. Named SB 394, the new law requires a $50,000 surety bond from a corporate surety for off-highway vehicle dealers, lessors and manufacturers. The surety bond is conditioned on cooperation with the new law and that the licensee will operate its company without violating a consumer contract, partaking in deceiving trade practices, fraud, or deceptive representation. SB 394 authorizes direct actions on the surety bond, but the surety’s total aggregate liability is restricted to the quantity of the surety bond. The new law also authorizes licensees that conducted their businesses for 5 years in an approach that the Department of Motor Vehicles found satisfactory to acquire a diminution in the quantity of the required surety bond for up to 50% of the surety bond amount.

North Dakota state has written a new law concerning mortgage originators. The new law, which is referred to as SB 1260, requires mortgage loan originators to be covered by a surety bond. The originator must acquire a surety bond or has the option to use the surety bond of their employer. When the law was originally drafted, the surety bond would have been in the quantity of $50,000, but the law was modified to require the Commissioner of Financial Institutions to establish the amount required through policy, which must mirror the sum dollar amount of loans originated in the prior year. SB 1260 authorizes the Commissioner of Financial Institutions to raise the surety bond amount required should the protection of the public interest require it. A minimum net worth of $25,000 also must be sustained as well as the surety bond.

Employees of the Office of State Finance are affected by a new law that was enacted in the state of Oklahoma. The new law is named HB 2015 and alters the surety bond required of officials and staff of the Office of State Finance sanctioned to approve claims and payrolls. HB 2015 boosts the surety bond amount from a quantity that is no more than $25,000 to a quantity that is no less than $50,000; the Director of the Office of State Finance will establish this amount. The new law subjects all these officials to this surety bond requirement, while the previous law made it relevant to all officials not already under any other surety bond for such reasons. HB 2015 became active on July 1st, 2009.

New legislation was introduced in Nevada State relating to family trust companies. The new law is titled SB 365 and regulates the family trust companies. The new legislation requires the company’s directors or managers to acquire fidelity bonds in quantities that they will establish to cover functioning officers, managers, members acting in administrative capacity, in addition to the entity’s employees. The surety bond indemnifies the family trust company against losses that originated from any deceitful, fraudulent or illegal act or omission that any of the bonded individuals perpetrated.