Surety Bond Claims: Communication Is Key

The surety bond industry is a quirky one. Should you already have bonds or foresee needing bonding in the future, it’s important to have good communication with your surety company. Poor communication can bring about avoidable lawsuits just like it did for a couple of condominium complexes in New York City.

Oklahoma Service Contract Bond

Oklahoma State has enacted a new bill concerning the surety industry. The new bill is named SB 780 and requires the service contract provider to obtain a surety bond or other security. The amount of the bond must be at least 5% of the gross premium received on the sale of the service contract for all contracts supplied and in force within Oklahoma and can also be no less than $25,000. Also required is a funded reserve account in addition to the bond. SB 780 will be effective November 1, 2011.

North Dakota Potato Dealer Bond

The laws for North Dakota potato dealers have evolved. A new bill titled HB 1027/HB 1399 makes financial security mandatory in order to obtain a potato dealer license. Under previous legislation, dealers were required to be licensed and the State Seed Commissioner had the option to require a form of financial security, which a surety bond would satisfy.

North Carolina Release Of Lien Bond

Commercial real estate is affected by new surety legislation in North Carolina. The new law is named HB 174 and implements measures for filing liens on commercial real estate which allows a surety bond equivalent to 125% of the amount of the lien claim to be used to release the lien. HB 174 became effective October 1, 2011.

Road Rage Over Untapped Surety Bonds

Unfinished roads in the city of Murfreesboro, TN seem to be giving many residents some rage. Surety bonds were obtained to help get these roads finished in multiple subdivisions, but the city council is considering using taxpayer money to complete a job that is the housing developer’s responsibility.

New York Combative Sports Bond

New York legislators have implemented a new bill concerning combative sports. The new bill, which is titled SB 2811, requires individuals conducting combative sports matches to acquire a surety bond to guarantee that they follow state regulations. The specific bond amount is not yet established.