The SB 1432, which became effective on January 1, 2009, amended California’s law for claims toward home improvement contractors. The new law states that a homeowner may make a claim against the contractor’s bond only if the damages happened when the homeowner did not intend on selling the home. The law also makes a change to the time limit of making the claim, based on the contractor’s licensing period.
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California Contractor’s License Bond Amendment
August 17, 2009 by Lisa GrimsleyCategory: Commercial Bonds, Contractor License Bonds, Surety NewsTags: bond requirements, ca, california, contractor, Contractor License Bonds, contractors, legislation, surety bond | Comments (0)
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California Private Cemetary Bond
August 14, 2009 by Lisa GrimsleyCalifornia’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. Category: Commercial Bonds, Surety NewsTags: bond requirements, ca, california, legislation, private cemetary bond, surety bond | Comments (0)
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California Exchange Facilitators Bond
August 13, 2009 by Lisa GrimsleyCalifonia’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.Category: Commercial Bonds, Surety NewsTags: bond requirements, ca, california, exchange facilitator, legislation, license bond, surety bond | Comments (2)
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California Life of Well Bond
June 23, 2009 by Lisa GrimsleyA “life of well bond” or a “life of production facility bondâ€? is required for oil production facilities who have outstanding liabilities to the state or who continually violate existing laws, as stated by California’s AB 1960. The bond needs to ensure that the facility will properly plug and abandon the well, safely decommission the facility, and that financing for any spill and incident cleanup will be provided with limited costs to the state. Once the facility has been properly decommissioned, the bond will be released. This law became effective on January 1, 2009.Category: Other, Surety NewsTags: bond requirements, california, legislation, life of production facility bond, life of well bond, surety bond | Comments (0)
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California Foreclosure Consultant Bonds
June 17, 2009 by Lisa GrimsleyWith the AB 180, effective on July 1, 2009, foreclosure consultants are now required to register with the Department of Justice and to obtain a $100,000.00 surety bond. The bond is in favor of the State and to protect the homeowner in case the foreclosure consultant violates the new or existing law in any way. The SFAA and the AIA local counsel worked together on this bill to improve the bond requirements, which makes this bond more available and easier to underwrite.Category: Commercial Bonds, Surety NewsTags: bond requirements, california, foreclosure, foreclosure consultants, legislation, surety bond | Comments (0)
