Surety Bond News

The State Accident Insurance Fund Corporation was affected by a new bill in the state of Oregon. The new bill is labeled HB 2634 and authorizes a letter of credit or alternative security to present to the State Accident Insurance Fund Corporation in place of the surety bond required under present legislation. HB 2634 sanctions the State Accident Insurance Fund Corporation to require any employer insured under the Corporation to submit a deposit for the Industrial Accident Fund. In the place of the deposit, a surety bond may be acquired to meet the requirements.

A new bond requirement update was introduced on February 2nd, 2009 concerning the juvenile court in the state of Oklahoma. The new law is titled HB 2029 and terminates the surety bond that the juvenile court could require of parents or appointed guardians that are charged with supervising an adolescent that has been placed on probation in their residence or in the custody of the appointed guardian. HB 2029 was enacted on 5/21/2009.

New legislation was introduced on 2/3/2009 in Oregon State relating to special events brewery public house licenses. The new law, which is referred to as HB 2528, requires a $300,000 liquor liability policy or a surety bond in order to acquire a special events brewery public house license for public proceedings anticipated to draw more than 300 customers per day. The license has a short duration of five days. HB 2528 was enacted on May 26th, 2009.

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.

North Dakota state has written a new law concerning mortgage originators. The new law, which is referred to as SB 1260, requires mortgage loan originators to be covered by a surety bond. The originator must acquire a surety bond or has the option to use the surety bond of their employer. When the law was originally drafted, the surety bond would have been in the quantity of $50,000, but the law was modified to require the Commissioner of Financial Institutions to establish the amount required through policy, which must mirror the sum dollar amount of loans originated in the prior year. SB 1260 authorizes the Commissioner of Financial Institutions to raise the surety bond amount required should the protection of the public interest require it. A minimum net worth of $25,000 also must be sustained as well as the surety bond.