Surety Bond News

Money brokers in North Dakota are already required to acquire a surety bond in order to operate legally and register with the state; but a small modification to the requirement has recently been made. The old law asked money brokers to get a $25,000 surety bond, no more and no less. The new law, which is titled SB 2124, requires a minimum surety bond of $25,000. The surety bond amount required will be determined by state regulations.

Nebraska legislators have recently enacted a new surety bond requirement concerning real estate appraisal management companies. The new law is named LB 410 and requires all real estate appraisal management companies to acquire a $25,000 surety bond in order to operate within the state legally. Should a claim go out on the bond because the principal didn’t follow state regulations, the surety company is only liable up to the total bond amount; in this case $25,000. The surety bond must stay active for one year after the company with the bond closes up shop.

Real estate appraisal management companies have a new surety bond requirement to meet in the state of Kentucky in order to stay legal. The new law is called HB 288 and requires real estate appraisal management companies to acquire a surety bond in order to guarantee the responsibilities and duties expected of them. The bond amount required will vary based on regulations and the real estate appraisal company itself, but the bond can’t surpass $500,000. As always, the liability of the surety who provides the bond can’t surpass the bond amount itself. This bond requirement benefits anyone who will be doing business with real estate appraisal management companies because they will be covered by a maximum $500,000 surety bond.

In the state of Wyoming, there were a couple changes when it comes to surety bonds in the last few months. The first change concerns circuit court judges and magistrates. A new law, named HB 123 repeals the original $5,000 surety bond required of circuit court judges and the $1,000 surety bond required of magistrates. Since these small bond amounts were only covering a maximum of $5,000, this change should not have a big impact. (more…)

Utah legislatures seem to be trimming off quite a few surety bond requirements for various state officials. The officials that no longer need bonds to work legally include the treasurer of the regional grazing boards, employees of the Alcoholic Beverage Control Commission; the Labor Commissioner and the Labor Commission’s employees; the adjutant general, the property and fiscal officers of the United States for the Utah National Guard; the business administrator including other appointed board officers of a local school board; the Transportation Commission; the Utah Insurance Commissioner and employees of the Insurance Department; officers of the State militia; the officers and employees of the Division of Finance; employees of the Division of Fleet Operations and Administration of State Motor Vehicles; the State Auditor; and the Attorney General. Hopefully the termination of all of these public official bonds doesn’t backfire on the state since the individuals in the list above are no longer required to be covered by a surety bond which in the end is meant to protect public money.