Surety Bond News

New Jersey State enacted a new bill relating to local school boards. The new bill is named SB 1287 states that local school boards lacking a treasurer of school funds must have its secretary of the board to execute the responsibilities of the treasurer. The new bill requires the secretary to acquire a surety bond in of a quantity that the school board will establish. The present law already requires the secretary of the board to attain a surety bond of at least $2,000, conditioned on the authentic execution of responsibilities of the office. SB 1287 states that if there is no treasurer available, the secretary would not be asked to acquire a supplementary surety bond if they are an officer of the municipality, which constitutes the district, if the surety bond they gave guaranteeing the truthful execution of their municipal responsibilities also covered and guaranteed the dependable performance of their responsibilities as secretary. Additionally, a certificate of coverage with adequate quantities for the municipal and the board position should be certified to the local school board.

Members of the Alcoholic Beverage Control Commission (ABC) in the State of North Carolina must follow a new law that was recently enacted. The new law is labeled HB 1717 and amplifies the quantity of the required surety bond for both the local board members of the Commission and the local store administrators from $5,000 to $50,000. The new law would have initially boosted the required surety bond quantity up to $100,000 but the law was modified.

The State of Illinois implemented a new bill regarding public adjusters within the state. The new bill, which is titled SB 660 conforms the present legislation to the new NAIC model legislation concerning public adjusters. SB 660 boosts the present surety bond required for such licensees from $5,000 to a minimum quantity of $20,000. The new bill also authorizes an irrevocable letter of credit to be utilized, which the previous law did not. The surety bond must be in favor of the State and the Director of Insurance is certified to make recovery on behalf of any individual suffering damages from flawed procedures, failure to act, conviction of fraud/unjust practices in their official capacity.

Private child support collection agencies must abide by a new law in Louisiana State which is named SB 130. The new law requires private child support collection agencies to register and acquire a $50,000 surety bond or cash deposit. The surety bond must be issued by a State licensed surety company, and it also must be conditioned on conformity to the anticipated legislation including the authentic performance of the agency’s agreements with its patrons.

The State of Illinois introduced a new law regarding debt settlement providers. The new law, which is referred to as HB 4781, asks debt settlement providers to become licensed and to acquire a $100,000 surety bond. At first HB 4781 would have called for a minimum $1 million surety bond, but it was modified within committee in the House. The Director of the Division of Financial Institutions has the ability to require a larger surety bond quantity calculated by the disbursements that the provider executed in the prior year. The surety bond must be issued by a state licensed insurance company to perform the commerce of fidelity and surety insurance.