Surety Bond News

On January 20th, 2009, a new bill was presented concerning depositories in the state of Illinois. The new bill, which is titled HB 264 generates the Illinois Urban Development Authority and requires its depositories to obtain a surety bond conditioned upon the protection of money deposited and reimbursement of the deposits. The minimum quantity accepted for the surety bond must be equivalent to at least to the greatest amount anticipated to be on deposit at any given instance. HB 264 was enacted on 8/11/2009.

There is a new depository bond law in the state of West Virginia called HB 4692. The law provides an alternative to the depository bond requirements for public funds belonging to the state. Existing law requires a $10,000 bond to be posted by eligible depositories. The new law allows such banking establishments to position deposits in certificates of deposit. The certificates of deposit requirements are outlined by the new law; this will make banking establishments qualified to use them in lieu of bonds.