Surety Bond News

The State of Texas introduced a new law relating to anthropogenic carbon dioxide. The new law is titled SB 1387 and provides for the injection and geologic storage of anthropogenic carbon dioxide, which is carbon dioxide that has been stripped, segregated, or separated from any other fluid flow or was harvested from an emission source such as clean energy endeavors or industrial sources. The carbon dioxide is stored in injection wells, for which a permit is necessary, along with proof of financial accountability in the form of a performance bond or alternative financial security. The surety bond guarantees the proper plugging of a deserted well, or the availability of funds for plugging the well, post-injection site treatment, and closure of the location.

HB 169 is a new Wyoming State law that concerns any organizations that are licensees under the Uniform Consumer Credit Code. The new law requires all organizations that are licensees under the state Uniform Consumer Credit Code to acquire a surety bond to cover individual mortgage loan originators in employment or under contract with the licensee. HB 169 requires mortgage loan originators to be licensed and covered by their employer’s surety bond. The surety bond quantity must be calculated by the volume of residential mortgage loan activity and will be established using regulation. The surety’s aggregate liability is restricted to the amount of the surety bond and must be issued by a state authorized surety. If a consumer is harmed by a breach of the law by a licensee or one of its employees, the surety bond must be forfeited to the State for the benefit of any individual damaged in a quantity that will fulfill the defiance or the surety bond in its entirety if the violation surpasses the quantity of the surety bond. The surety bond must stay active until released in writing by the State or it will terminate two years after the surrender, revocation or expiration of the license. All of these requirements are taken from the present legislation concerning mortgage broker bonds.

Vermont State introduced a new bill concerning milk handlers. The new bill is named SB 89 and it modified the quantity of the surety bond or letter of credit required under present law for milk handlers. The previous law stated that the surety bond had to be in a quantity equivalent to 50% of the maximum amount due for all milk producers in the State who sell milk to the handler for a 41-day phase during the prior 12 months. SB 89 now states that this quantity pertains to milk handlers managing milk from all species other than cattle. For milk originating from cattle, the surety bond must be for 100% of the amounts as calculated under present legislation. The surety bond also protects milk cooperatives including Vermont producers, who gain from the surety bond’s protection under present law. The new law also creates new exemptions from the surety bond requirement for handlers that pay milk cooperatives in advance or at the time of delivery for the milk; also for handlers that pay milk coopertives before or at the time of delivery for the milk and also for handlers who purchase less than 150,000 pounds of milk monthly from a milk cooperative.

SB 778 is a new bill that was enacted in the State of Texas regarding identity recovery services. The new bill sets financial stipulations for providers of identity recovery service contracts, requiring a compensation insurance policy and a funded reserve account, including financial security in the form of a surety bond, a cash deposit, securities, a letter of credit or another variety of satisfactory security. The financial security must be in a quantity that is no less than $25,000 or 5% of the gross consideration the provider received from consumers resulting from the sale of all identity recovery service contracts issued and outstanding in the State, less any claims paid whichever quantity is larger. In place of such financial instruments, the provider or its parent company have the option to sustain a net worth or stockholder’s equity of a minimum of $100 million.

A new West Virginia law has affected gaming facilities within the state. The new law is labeled SB 575 and modifies the surety bond requirement for gaming facilities. The present law requires a surety bond in the quantity of $5 million to guarantee the payment of all required payments; also guaranteeing that the licensee will maintain all books and records and manage gaming in cooperation with the law. SB 575 eliminates the condition on the surety bond for compliance in regards to the conduct of gaming procedures and bookkeeping practices. The new law also directs the State Lottery Commission to establish the quantity of the surety bond in the place of a $5 million surety bond. The surety bond must be sufficient to protect against the non payment of money owed to the State. SB 575 now identifies that a surety licensed to write insurance is required for the surety bond. The previous law did not make such specifications.