Surety Bond News

California’s amendment SB 1225, which became effective January 1, 2009, allows LLC’s (Limited Liability Corporations) to establish private cemeteries. These companies need to obtain a form of security, such as a trust or bank escrow account, bank certificates of deposit, cash, letters of credit, United States Treasury obligations, or surety bonds. A minimum of a $1 million bond in needed for companies with 5 or less employees. An additional $100,000 is added per licensee if there are more than 5 employees, but the maximum amount for the bond is $5 million.

Califonia’s SB 1007 law originally did not have any relation to fidelity bonds. When the law was amended and became effective on January 1, 2009, it required exchange facilitators to be licensed and obtain either a minimum $1 million bond or fidelity bond, securities, post cash, or an irrevocable letter of credit in the same amount. Financial Institutions and title insurers, underwritten title companies and controlled escrow companies are exempt from the licensing requirement of the bill, but they still need to comply with the bonding and insurance requirements.