Surety Bond News

The state of Nevada has enacted a new law relating to automobile wreckers. The new law is titled AB 204 and states that an automobile wrecker can utilize the new law’s streamlined method for processing a motor vehicle for parts/scrap if they acquire a $50,000 surety bond; the bond must be from a state licensed surety company. The bond specified in this bill is in addition to other possible bonds already required of the wrecker. The bond also can cover multiple business locations but only if the wrecker holds ownership of at least 51% in each location.

The state of Kentucky has enacted a bill concerning radon measurement professionals. The new law is titled HB 247 and requires radon mitigation/measurement professionals to obtain a $10,000 surety bond issued by a corporate surety able to do business in the Commonwealth. The bond guarantees that the radon professionals will abide by the regulations set by the Commonwealth.

New Indiana surety law affects professional employer organizations within the state. The new law is named HB 1486 and modifies the financial requirements concerning professional employer organizations. Previous legislation required a professional employer organization to sustain a minimum net worth of $50,000 or acquire a minimum bond of $50,000. HB 1486 requires the professional employer organization to sustain a positive working capital; if it can’t it must obtain a surety bond to make up for the deficit, and an additional $100,000.

The bond required of Georgia continuing care facilities now guarantees something new thanks to a new law. The new law is named SB 166 and states that the bond serves as financial assurance to guarantee the contractual obligations of the continuing care provider to the facility’s residents instead of just guaranteeing compliance with regulations alone.

Connecticut mortgage brokers, lenders and originators must abide by a revised bond amount requirement. The new bill is titled SB 1110 and modifies the current licensing laws for mortgage lenders, brokers and originators. Previous legislation required a minimum $40,000 surety bond. SB 1110 requires the bond amount to mirror the licensee’s loan origination volume. The new bill requires mortgage lenders and correspondent mortgage lenders to obtain a minimum $100,000 surety bond and mortgage brokers must acquire a minimum $50,000 bond.