Surety Bond News

Alabama State enacted a new bill concerning officials of an emergency telephone district. The new bill, which is referred to as HB 188, requires the members of staff or officials of an emergency telephone district that manage or disburse its funds to acquire a surety bond in a quantity that is no less than the sum funds that the district attained in the previous fiscal year. HB 188 is relevant to county officers, county commissioners, clerk and recorders, sheriffs, coroners, treasurers, assessors, and surveyors.

A new law was enacted on February 23rd, 2009 in the state of Alabama concerning a release of lien bond. Titled HB 1594, the new law decreases the quantity of the surety bond required to challenge a lien for labor or materials on property from twice the quantity of the lien claimed to an amount equivalent to the claim. HB 1594 was enacted on 03/18/2009.

Mortgage brokers must abide by a new law in the state of Alabama which was introduced on February 3rd, 2009. The new law, named SB 232, allows the State Banking Department to demand mortgage brokers to obtain a surety bond as a replacement for meeting the existing net worth requirements. The State Banking Department will establish the amount of the surety bond. The previous law did not ask for bonding of mortgage brokers. SB 232 was enacted May 21, 2009.

In the state of Alabama, a new law was enacted concerning medical supply providers. The Alabama Medicaid Agency has proposed rules to incorporate a requirement that durable medical equipment and medical supply providers must abide by. The Alabama state Medicaid program must acquire a $50,000 surety bond for each of the provider’s locations.

Loan originators are affected by a new law written in Alabama. The new law, SB 249 requires mortgage loan originators to be licensed and to obtain a surety bond. SB 249 allows originators that are employees or the exclusive agent of an individual subject to the Alabama Consumer Credit Act (SB 234) or the Mortgage Brokers Licensing Act (SB 232) to utilize that individuals or entity’s surety bond to meet the requirement of the new law. The surety bond must supply coverage for every originator in an amount equal to the dollar amount of loans originated. SB 249 became active on June 1, 2009; though the licensing requirements will not be active until June 1, 2010.