Surety Bond News

LB 722 is a new bill that was presented concerning all state employees within the State of Nebraska. The new bill alters the present surety bond requirements for all state employees. The previous law required all staff not specifically required to acquire a surety bond to be covered under a blanket surety bond or insurance policy in a quantity that could not surpass $1 million. The new bill terminated the specified amount and conferred authority on the State’s risk manager to establish the amount required. LB 722 became active three months following the adjournment of the session in which it is enacted.

A new law was enacted concerning appellants within the state of Nebraska. The new law is named LB 441 and provides an exemption for appellants that are impoverished from the appeal bond requirements of present legislation for municipal court cases. An affidavit confirming the financial situation of the appellant will be required to acquire the exemption.

New legislation was introduced in Nebraska State relating to treasurers of learning community coordinating councils. The new law is titled LB 392 and requires the treasurer of a learning community coordinating council to acquire a surety bond in a quantity no less than $500 and can not exceed double the amount of money that may come into their hands. The learning community coordinating council will establish the amount required. LB 392 became active upon enactment.

State-charted banks are affected by a new law that was enacted in the state of Nebraska. The new law is titled LB 327 and authorizes state-charted banks to deposit, or have on deposit, funds from a fiduciary account that are managed by the bank’s trust department. Regarding any funds not insured or guaranteed by the Federal Deposit Insurance Corporation, LB 327 requires the bank to set to the side collateral as security under the management of suitable fiduciary officers and bank staff. Surety bonds will be authorized as alternative collateral, among other alternative financial instruments. LB 327 became active upon enactment.

Updated legislation has been implemented relating to the Federal Home Loan Bank of Topeka. The new law is referred to as LB 74 and authorizes the Federal Home Loan Bank of Topeka to issue letters of credit for any private deposits kept in a state-chartered bank that surpasses the amount insured by the Federal Deposit Insurance Corporation. The present law only allows a “guaranty bond” for these objectives. LB 74 was enacted on May 5th, 2009.