Surety Bond News

New surety legislation was enacted concerning Minnesota plumbers. The new law is named SB 2 and modifies the surety bond requirements for plumbers; the previous legislation required all licensed contractors who perform plumbing work to acquire a $25,000 surety bond. The new law changes the requirement to pertain to all individuals who perform plumbing in the state regardless of whether they are a licensed contractor.

Some distilleries operating out of Minnesota must abide by new surety bond requirements that were recently put in place. The new law is titled HB 1326 and requires micro-distilleries of premium distilled spirits to acquire a $2,000 surety bond if they are manufacturers/wholesalers of less than 20,000 gallons of 95% alcohol per year. Manufacturers/wholesalers of less than 40,000 gallons of 95% alcohol per year must obtain a $3,000 bond.

Plumbers and household installers within the State of Minnesota must abide by a new bill that was recently enacted. The new bill is titled SB 2510 and modifies numerous surety bond requirements relating to plumbers and household installers. SB 2510 terminates the previous exclusion of the surety bond requirements for plumbers working under master plumbers. Now plumbers must acquire a minimum $25,000 surety bond under the present legislation. The new bill also states that the present surety bond required for manufactured home installers, residential roofers and sign installation contractors now calls for a “biennial” surety bond. The present legislation requires a $15,000 surety bond for residential roofers and a $2,500 bond for manufactured home installers.

Consumer collection agencies must abide by a new law according to Minnesota State legislation. The new law is named SB 2839 and amplifies the surety bond amount required of consumer collection agencies from $20,000 to $50,000. There is also an additional $5,000 required for every $100,000 acquired from debtors in the state of Minnesota throughout the previous year. The surety bond may not surpass $100,000.

The State of Minnesota enacted a new law concerning mortgage loan originators. The new law is named SB 2510 and requires mortgage loan originators to acquire a surety bond, either by attaining one themselves or through their employer’s bond if they are the member of staff/exclusive agent of an individual subject to the bonding requirements. The surety bond must provide coverage for all mortgage loan originators and be in a quantity mirroring the dollar amount of loans originated. The Commissioner of Commerce will establish the quantity required. SB 2510 also modifies the present financial requirements needed for residential mortgage loan originators to acquire a license. The previous legislation required residential mortgage loan originators to attain a minimum surety bond of $50,000 or an irrevocable letter of credit. Mortgage loan originators also had the option to sustain a minimum net worth of $250,000 or to be accepted as a mortgagee by the U.S. Department of Housing and Urban Development or the Federal National Mortgage Association. The alternative of acquiring a letter of credit or satisfying the net worth requirements are now terminated under the new legislation. SB 2510 states that residential mortgage loan originators must attain a $100,000 surety bond that includes all mortgage loan originators that are workers or agents of the licensee. When the surety bond is renewed, it must be in a quantity that mirrors the licensee’s sum dollar quantity of the closed residential mortgage loans originated in Minnesota. The surety bond amounts will have to follow schedule below:

Dollar Amount of Loans Bond Amount
$0 to $5 million $100,000
$5,000,000.01 to $10 million $125,000
$10,000,000.01 to $25 million $150,000
Over $25 million $200,000