Surety Bond News

The State of Indiana enacted a new bill relating to mortgage lenders. The new bill is labeled SB 328 and requires first lien mortgage lenders and consumer lenders to satisfy the terms of new federal standards regarding the licensing of mortgage loan originators. Should these lenders utilize a licensed mortgage loan originator, such an originator would be required to be covered by their employer’s surety bond. The surety bond would have to be in a quantity that mirrors the dollar amount of mortgage transactions originated according to the determination of the Director of the Department of Financial Institutions. SB 328 also allows the Director to implement rules to apply the surety bond requirement.

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.”

A new bill was enacted in the State of Washington relating to health care services. The new bill, which is referred to as SB 5480 regulates discount plan organizations that offer plans to consumers for health care services. SB 5480 requires a surety bond in a minimum quantity of $35,000. As an alternative to the surety bond, cash securities or other financial instruments are authorized to be deposited in the same quantity.

A new law was presented concerning vehicle rental agencies within the State of Wyoming. The new law is named SB 57 and produces a penalty for rental vehicle agencies failing to present the required reports detailing all collected surcharge fees or if the agency was functioning without a valid rental vehicle agency certificate. These violations now oblige the agency to attain a surety bond in the quantity of $25,000, or 150% of the amount in which the rental agency is delinquent, whichever is more. The surety bond has to written by a State licensed surety company and must guarantee the payment of delinquent fees and the return of certificates. A surety bond may be required from agencies with certificates that have been canceled or for any infringements of the applicable legislation as a circumstance of licensure in subsequent applications.

SB 5354 is a new Washington State law that was enacted relating to a county public hospital capital facility. The new law directs the county treasurer to serve as the treasurer for a county public hospital capital facility. It also authorizes the hospital’s commission to choose and appoint its own treasurer, who must acquire a surety bond in a quantity that the commission will establish. SB 5354 authorizes the hospital to require any member of staff managing the hospital’s funds or securities to attain a surety bond. The new law also calls for a surety bond from depositories holding hospital funds in a quantity nt less than the quantity deposited.