SB1289, enacted on April 28, 2008 and made effective October 10, 2008, created flood protection districts and a Board of Directors for each district to construct flood protection facilities. The new law states that performance and payment bonds are required for any construction, and clarifies the process for claims against the performance and payment bonds. The surety has 60 days to act upon a contractor found to be in default by the board or the board may re-let the contract. If the costs to complete the project surpass the finances available for payment, the defaulting contractor’s surety has 20 days after mailing of the notice to satisfy the board’s demand for payment of the difference. This demand cannot be more then the penal sum of the bond, and monies must be used to pay for the costs of completing the work. Delivery of writ may be served on the Surety’s principal office or it’s Attorney-In-Fact. If there is no office or Attorney-In-Fact, it may be service on the insurance commissioner.
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Arizona Flood Protection Facility Performance Bond
September 1, 2009 by Tracy KonopkaCategory: Contract Bonds, Performance Bonds, Surety NewsTags: arizona, az, bond requirements, flood protection, legislation, performance bond, surety bond | Comments (0)
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Arizona Mechanics & Materialmen Liens Bond
August 28, 2009 by Tracy KonopkaHB 2474 was enacted by the state of Arizona on April 28, 2008 and became effective October 10, 2008. It was created to amend the current mechanic’s lien discharge and discharge bond laws. It is required that bonds for lien releases be in the amount of 150% of the claim under the existing law, and the bonds can be posted by any original contractor, subcontractor or construction lender. This enactment clarified the law so that upon the recording and service of the surety bond discharging the lien, funds withheld with regard to any issued stop notice on the construction project shall be released. The enactment also grants the person filing a stop notice with a lien the permission to post a surety bond (bonded stop notice). The amount of the claim required for a stop-notice bond has been increased from 125% to 150% under the new law.Additionally, if the construction lender or any original contractor or subcontractor disputes a stop notice or bonded stop notice, the party can post a bond in the amount of 150% of the claim. This has been increased from 125% by this new law. It also states that a bond provided for the lien release may also be used as the bond for the release of stop notice on a project, as well as for the release of any funds withheld in regards to the stop notice.
Category: Contract Bonds, Surety NewsTags: arizona, az, bond requirements, legislation, materialmen lien bond, mechincs lien bond, surety bond | Comments (0)
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Arizona Notary Bonds
June 14, 2009 by Lisa GrimsleyArizona’s SB 1174 no longer requires bonds to be filed under existing law with the clerk of the superior court in the notary public’s county of residence. They must now be filed with the Secretary of State. This law was enacted on April, 28, 2008.Category: Surety NewsTags: arizona, bond requirements, legislation, notary bonds | Comments (0)
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Arizona Pest Control Bond
June 13, 2009 by Lisa GrimsleyHB 2822, which was enacted in Arizona on July 7, 2008 changed the financial responsibility requirements for businesses in pest control. Previously, a cash deposit, certified check, obtaining liability insurance, or obtaining a surety bond was required. With this new law, “self-insured retention� was added as an acceptable method to meet the financial responsibility requirements. The new law also increased the minimum required from $300,000 to $500,000. The insurer issuing the bond is no longer required to be licensed in Arizona. The new law also eliminates the requirement for license suspension if the bond is issued for less than the minimum.Category: Commercial Bonds, Surety NewsTags: arizona, bond requirements, legislation, surety bond | Comments (0)
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Arizona Trust Bond Requirement
June 11, 2009 by Lisa GrimsleyThe Arizona Trust Code was adopted by HB 2806, was enacted on May 27, 2008, and was made effective December 31, 2008. This law states that when a court believes the interest of the beneficiaries must be protected, it is required that the trustee obtain a bond to ensure the performance of their duties. If the court has not yet dispensed of it, a bond may be required if it’s in the terms of the trust. The court may decide on the amount of the bond, terms of the trustee’s liability, if any modifications need to be made, and may terminate the bond at any time. Even if the terms of the trust require a bond, banks, national banking associations, savings and loan associations, title insurance companies, and trust companies are not required to give one. Any liability of the sureties or the trustee on the bond for the omissions and acts of the trustee will not be affected or discharged, even if the trustee resigns. Category: Court Bonds, Surety NewsTags: arizona, bond requirements, legislation, surety bond | Comments (0)
