The State of Utah updated the current requirements that motor vehicle dealer’s must meet by introducing a new bill. The new bill is named HB 404 and expands the present requirements for a motor vehicle dealer’s surety bond; it must guarantee the cooperation with the present legislation, which requires payoff of liens on trade ins.
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Utah MVD Bond Requirement Update
June 10, 2010 by Eric WeisbrotDiscuss: Comments (0)
Category: Auto Dealer Bonds, Commercial Bonds, Surety News
Tags: bond requirements, legislation, mvd bond, surety bond, ut, utah
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Virginia Motor Vehicle Title Lender Bond
June 9, 2010 by Eric Weisbrot
SB 606 is a new law that was presented in Virginia State concerning motor vehicle title lenders. The new law requires motor vehicle title lenders to be licensed and to acquire a surety bond in the quantity of $50,000 for each location, but can not surpass $500,000. Initially, the bill would have required a surety bond in the quantity of $10,000 for each location, not to surpass $50,000; the bill was exchanged for a larger surety bond. The surety bond would be conditioned on the licensee executing all written agreements with borrowers or potential borrowers, properly and accurately accounting for all funds received by the applicant/licensee in its licensed business, and the cooperation with all related legislation in managing their business. The bill would authorize direct actions on the surety bond, but the surety’s aggregate liability would be restricted to the surety bond quantity. Discuss: Comments (0)
Category: Auto Dealer Bonds, Commercial Bonds, Surety News
Tags: bond requirements, legislation, Motor Vehicle Title Lender Bond, surety bond, va, virginia
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Wyoming Vehicle Title Bond
June 2, 2010 by Eric Weisbrot
Wyoming State presented a new law concerning vehicle title bond requirements. The new law is named SB 58 and requires a surety bond in relation to an application for a duplicate vehicle title to substitute the original title when it has been misplaced. The surety bond must be in a quantity equivalent to twice the value of the vehicle as established by the applicant, the surety or vehicle dealer. The surety bond must indemnify a previous owner, lien holder, subsequent purchaser, secured creditor or encumbrancer of the vehicle including other successors in interest against expenses, losses or damages; this includes realistic attorney fees caused by the issuance of the certificate of title or by a flaw in or undisclosed security interest upon the right, title and interest of the applicant in the vehicle. SB 58 authorizes direct actions against the surety from individuals sustaining damages in connection with the issuance of the title to the vehicle. The surety bond has to be issued by a State authorized surety or by individual sureties that are qualified under the present law. The present legislation at Section 1-1-105 states that “Sureties shall be residents of this state, worth in the aggregate double the sum to be secured, beyond the amount of their debts, and have property liable to execution in this state equal to the sum to be secured. Every person acting as surety for another shall file with the court his affidavit showing that he meets the requirements set forth herein.”
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Category: Auto Dealer Bonds, Commercial Bonds, Surety News
Tags: bond requirements, legislation, surety bond, Vehicle Title Bond, WY, Wyoming
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Nevada Off-Highway Vehicle Dealer Bond
April 30, 2010 by Eric Weisbrot
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. Discuss: Comments (0)
Category: Auto Dealer Bonds, Commercial Bonds, Surety News
Tags: bond requirements, legislation, Nevada, NV, Off-Highway Vehicle Dealer Bond, surety bond
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Ohio Mortgage Loan Originator Bond
April 22, 2010 by Eric Weisbrot
HB 1 is a new law in Ohio State that was introduced relating to mortgage loan originators, martial arts match promoters, and manufactured housing dealers. The new law incorporates the new federal law for mortgage loan originators which requires them to be licensed and to attain a surety bond or to be covered by their employer’s surety bond. The present law requires all mortgage lenders/brokers to register and acquire a surety bond of $50,000 plus $10,000 for additional locations to their primary place of business. HB 1 states that residential mortgage lenders and brokers must sustain a surety bond as well as a net worth requirement. The surety bond must be from a state authorized bonding company and it will have to be in a quantity equivalent to “one-half percent of the aggregated loan amount of residential mortgage loans originated in the immediately preceding calendar year.” The required bond would be capped at $150,000 and cannot be less than the existing requirement of $50,000 plus $10,000 for every additional location. All mortgage brokers are subject to indistinguishable bonding requirements, but not the recent net worth provisions. Additionally, individual mortgage loan originators who are not covered by an employer’s bond have the surety bond amount capped at $100,000. There is no net worth requirement for loan originators. HB 1 also specifies claims procedures regarding the surety bond. Credit union service organizations are obliged to attain a surety bond under the new law for their mortgage loan originators.The new bill included other surety bonding provisions. These additions included an expansion of the bond requirement for boxing and wresting match promoters. The new law states that promoters for mixed martial arts, kick boxing, tough man contests, or any other form of martial arts have been exposed to the surety bond requirement; but wrestling match promoters have been excused. The new law also amplified the bond amount from $5,000 to no less than $20,000, and it terminated the cash substitutes to the surety bond. The previous law authorized a cash bond, certified check or a bank draft. Lastly, HB 1 applies to private competitions as well.
The new law also impacts manufactured housing dealers by subjecting them to a bonding requirement for motor vehicle dealers. HB 1 requires licensees that have been licensed for fewer than three years to acquire a surety bond in a quantity no less than $25,000 if the dealer sells a used manufactured home without attaining a certificate of title in the dealer’s name beforehand. The surety bond is exclusively for the function of compensating retail purchasers who sustain losses due to the dealer’s failure to obey the certificate of title laws. Additionally, the new law requires new manufactured home retailers to attain a surety bond or certificate of deposit in a quantity no less than $100,000. HB 1 also directs the Manufactured Housing Commission to implement regulations for manufactured housing brokers, which must contain a surety bond requirement in a quantity that will be established in the policy.
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Category: Auto Dealer Bonds, Commercial Bonds, Misc. Commerical Bonds, Mortgage Broker Bonds, Surety News
Tags: bond requirements, legislation, Mortgage Loan Originator Bond, OH, Ohio, surety bond
