Surety Bond News

Indiana public officials are affected by a new bill which alters the surety bond required of them. The bill is named HB 1025 and states that the surety bond required of public officials is no longer an annual bond. The SFAA realized that if the bond was annual it could make it cumulative throughout a public official’s term which would stack the amount bond every year, increasing the surety’s liability. Since the surety is financially backing the bond they are on the line should a public official not fulfill their responsibilities; and with a cumulative bond, the bond would increase every year but there would be no additional premium needed to be paid by the official. The Insurance Institute of Indiana agreed with the SFAA, ran with the bill and pushed it through the legislature.

Debt-management service providers within the State of Indiana must cooperate with a new bill that was recently presented. The new bill is labeled SB 328 and modifies the present surety bond requirement debt-management service providers must abide by. The previous legislation required a $25,000 surety bond conditioned on the authentic performance of duties under the laws, regulations and policies. SB 328 states that the surety bond quantity will be established via regulation.

The State of Indiana presented new legislation relating to mortgage lenders. The new law is labeled SB 328 and states that first lien mortgage lenders and consumer lenders must abide by the licensing requirements set for mortgage loan originators and acquire a surety bond in a quantity that mirrors the dollar amount of mortgage dealings executed. The Department of Financial Institutions will promulgate the surety bond quantity through policy. SB 328 also alters the surety bond requirement for lenders who make small loans by terminating the present cap on the surety bond quantity; diminutive loans in Indiana are for $550 or less. The present legislation requires a $50,000 surety bond for individual locations where small loans will be executed. The surety bond quantity could not surpass $500,000 under the previous law. SB 328 states that the Department will establish the greatest surety bond quantity possible.

Indiana State lenders are affected by a new law that was enacted within the state. The new law is named SB 328 and terminates the cap on the surety bond amount for lenders making diminutive loans, which is referring to loans of $550 or less. The previous law required a $50,000 surety bond for every location where small loans will be performed. The surety bond quantity could not surpass $500,000 under former law. SB 328 states that the Department of Financial Institutions will establish the greatest surety bond amount possible instead.

The State of Indiana implemented a new law relating to debt-management service providers. The new law, which is referred to as SB 428, modifies the surety bond requirement for debt-management service providers. The previous law required a $25,000 surety bond conditioned on the truthful execution of the Department’s policy and regulations and compliance with the State’s legislation. SB 428 states that the Director will establish the quantity of the surety bond being required and the standards pertinent to the bond.