Surety Bond News

The State of Washington presented new legislation concerning appraisal management companies. The new law is titled HB 3040 and requires appraisal management companies to acquire a surety bond in a quantity of at least $30,000. The surety bond must be from a State authorized surety company and the aggregate liability of the surety can not surpass the surety bond’s penal total. The surety bond is conditioned on the licensee’s cooperation with the related legislation and policies. HB 3040 authorizes the licensee to “maintain unimpaired capital, surplus, and long-term subordinated debt” in the place of a surety bond.

The State of Washington has implemented a new law concerning appraisal management companies. The new law is titled HB 3040 and requires appraisal management companies to be licensed and acquire a surety bond that can be no less than $30,000. The surety bond must be from a state authorized surety company and the aggregate liability of the surety could not surpass the penal sum of the surety bond. The bond is conditioned on the licensee’s cooperation with the applicable legislation and policy. HB 3040 allows the licensee to preserve unimpaired capital, surplus and long-term subordinated debt in the place of a surety bond.

Appraisal management companies are affected by a new law enacted in the State of Oregon. The new law is titled HB 3624a and requires appraisal management companies to register and acquire a surety bond or letter of credit in the amount of $25,000. The surety bond would be conditioned on the payment of all sums that are to be paid to individuals executing real estate appraisal services for the business and all funds due originating from a judgment against the business for negligent or inappropriate real estate appraisal actions; including activity that causes a breach of its contracts. The surety company can terminate the surety bond with 30 days of written notification.

In Arkansas, a new law was written concerning appraisal management companies. HB 1694 is the new law’s name and requires appraisal management companies to post a surety bond, cash or securities in the sum of $20,000 in relation to registration. The surety bond guarantee’s an individual appraiser’s cooperation with the new law. HB 1694 authorizes direct actions on the surety bond, but the aggregate liability for the surety is restricted to the surety bond quantity. The new law was enacted on March 27th, 2009.