Surety Bond News

Legislators in Arkansas have enacted a new law concerning money transmitters. The new bill is named SB 785 and boosts the maximum surety bond required of money service and money transmission service businesses from $250,000 to $300,000. The present legislation requires a $50,000 surety bond in order to obtain a license plus $10,000 for every location within the State.

Both money service and money transmitter companies are affected by a new bill that was enacted in the state of Arkansas. The new bill is called SB 785 and boosts the maximum surety bond amount required of money transmitters from $250,000 to $300,000. The old bill called for a surety bond of $50,000 with an additional $10,000 per business location within Arkansas.

Money transmitters in the State of Washington must follow a new law that was recently enacted. The new law is labeled SB 6371 and modifies the quantity of the required surety bond for money transmitters. The previous legislation required a surety bond of at least $10,000 but could not surpass $50,000, including $10,000 for each business location. The sum of surety bonds could not surpass $500,000. SB 6371 states that the quantity of the bond is calculated by both the dollar amount of the previous year’s money transmissions and payment instruments. The bare minimum quantity remains at $10,000 but the maximum surety bond amount is $550,000 according to SB 6371.

SB 2652 is new legislation that was enacted in the State of Mississippi regarding sellers of checks. The new law alters the quantity of the surety bond required for sellers of checks and re-labels them as money transmitters. The previous legislation required a surety bond or alternative security in a minimum quantity of $25,000 and a supplementary $15,000 for every extra business location, but was capped at $250,000. SB 2652 now requires a surety bond in a quantity which is the greater of $25,000 or the amount equivalent to the volume of outstanding money transactions in Mississippi State. The new legislation also boosts the cap on the surety bond quantity to $500,000. The Commissioner of Banking and Consumer Finance has the ability to require a surety bond in surplus of $500,000. The bill would have initially amplified the maximum quantity to $1 million. The SFAA counseled the bill sponsor on the availability restrictions that a $1 million surety bond could generate; the cap on the bond was decreased in reaction to this.

A new law regarding money transmitters was implemented in the State of Washington named SB 6371. The new law modifies the quantity of the surety bond required of money transmitters. The previous law required a surety bond in a minimum base quantity of $10,000 but could not surpass $50,000, in addition to $10,000 per location. The sum bond amount could surpass $500,000. SB 6371 states that the quantity of the surety bond would be calculated by the dollar volume of the previous year’s money transmissions and the dollar volume of the previous year’s payment instruments. The minimum quantity would remain at $10,000, but the utmost surety bond amount would be $550,000 according to the bill’s provisions.