California’s amendment SB 1225, which became effective January 1, 2009, allows LLC’s (Limited Liability Corporations) to establish private cemeteries. These companies need to obtain a form of security, such as a trust or bank escrow account, bank certificates of deposit, cash, letters of credit, United States Treasury obligations, or surety bonds. A minimum of a $1 million bond in needed for companies with 5 or less employees. An additional $100,000 is added per licensee if there are more than 5 employees, but the maximum amount for the bond is $5 million.
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California Private Cemetary Bond
August 14, 2009 by Lisa GrimsleyCategory: Commercial Bonds, Surety NewsTags: bond requirements, ca, california, legislation, private cemetary bond, surety bond | Comments (0)
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California Exchange Facilitators Bond
August 13, 2009 by Lisa GrimsleyCalifonia’s SB 1007 law originally did not have any relation to fidelity bonds. When the law was amended and became effective on January 1, 2009, it required exchange facilitators to be licensed and obtain either a minimum $1 million bond or fidelity bond, securities, post cash, or an irrevocable letter of credit in the same amount. Financial Institutions and title insurers, underwritten title companies and controlled escrow companies are exempt from the licensing requirement of the bill, but they still need to comply with the bonding and insurance requirements.Category: Commercial Bonds, Surety NewsTags: bond requirements, ca, california, exchange facilitator, legislation, license bond, surety bond | Comments (2)
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California Telecommunications Public Utility Bond
August 12, 2009 by Lisa GrimsleyAs of January 1, 2009, the Public Utilities Commission of California may require a performance bond as a precondition of getting certain certificates and permits for telecommunications companies. AB 2578 allows this, also stating that the bond has to be sufficient to allow the collection of restitution, penalties, and fines for enforcement actions taken against the company. Category: Performance Bonds, Surety NewsTags: bond requirements, legislation, performance bond, Performance Bonds, surety bond | Comments (0)
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Texas Well Plugging Performance Bond
August 11, 2009 by Tracy Konopka
SB 1387 is a new law enacted in Texas for the management of carbon dioxide. The law was put in place for the storage of anthropogenic carbon dioxide. This carbon dioxide that is being stored has been segregated, stripped, or divided from any other fluid; along with any that was collected from a source such as clean energy programs or industrial industries. A permit is required to inject the carbon dioxide into injection wells, along with proof of financial responsibility with a performance bond or other financial securities. The proper plugging of an unused well, the availability of funds for plugging, post-injection site maintenance, and closure of the site will be taken care of by the performance bond. Category: Contract Bonds, Performance Bonds, Surety NewsTags: bond requirements, legislation, texas, tx, well plugging bond | Comments (1)
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Texas Identity Theft Recovery Service Bond
August 10, 2009 by Lisa GrimsleyThe state of Texas has enacted SB 778. The law establishes financial requirements for providers of identity recovery service contracts, which requires an insurance policy and reserve account reimbursement for the client. The new law also requires financial security in the form of a deposit of cash, a surety bond, securities, a letter of credit or another form of security. This security amount can not be less than $25,000 or 5% of the total consideration the provider received from consumers from the sale of all identity recovery service contracts written and outstanding in the State; if there are any claims paid greater, that will meet the requirement as well. With this new law in place, the provider or its parent company can sustain a net worth or stockholder’s equity of at least $100 million. SB 778 will become effective on January 1, 2010.Category: Commercial Bonds, Surety NewsTags: bond requirements, identity theft, identity theft recovery, legislation, surety bond, texas, tx | Comments (0)
