Surety Bond News

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.

Employees of the Office of State Finance are affected by a new law that was enacted in the state of Oklahoma. The new law is named HB 2015 and alters the surety bond required of officials and staff of the Office of State Finance sanctioned to approve claims and payrolls. HB 2015 boosts the surety bond amount from a quantity that is no more than $25,000 to a quantity that is no less than $50,000; the Director of the Office of State Finance will establish this amount. The new law subjects all these officials to this surety bond requirement, while the previous law made it relevant to all officials not already under any other surety bond for such reasons. HB 2015 became active on July 1st, 2009.

New legislation was introduced in Nevada State relating to family trust companies. The new law is titled SB 365 and regulates the family trust companies. The new legislation requires the company’s directors or managers to acquire fidelity bonds in quantities that they will establish to cover functioning officers, managers, members acting in administrative capacity, in addition to the entity’s employees. The surety bond indemnifies the family trust company against losses that originated from any deceitful, fraudulent or illegal act or omission that any of the bonded individuals perpetrated.

In Oregon, a new bill was introduced relating to winery licenses and brewery licenses. The new bill, which is titled HB 2247, fortifies the consumer protections of the surety bond or insurance required in relation to winery licenses, brewery licenses and grower sales privilege licenses when the licensee supplies alcohol on its property. HB 2247 authorizes the Oregon Liquor Control Commission to suspend the license for failure to abide by the surety bond or insurance stipulations implemented.

The State of Oklahoma enacted a new law relating to cemetery merchandise contracts. The new law is labeled HB 1618 and amends the surety bond requirements for pre-paid cemetery merchandise contracts. At the present time, establishments handling such contracts must have a trust fund established or must acquire a surety bond. Under the previous law, the surety bond had to be in a quantity that was no less than the aggregate value of the unsettled liabilities on undelivered prepaid cemetery merchandise contracts. HB 1618 requires the surety bond to be “the full principal amount of the services sold.” HB 1618 became active on July 1st, 2009.