Surety Bond News

A new bill was enacted in New York State concerning construction projects for the State University of New York (SUNY). The new bill is named SB 2808 and is a budget bill that boosts the bonding threshold for the University construction contracts from $50,000 to $250,000; this change affects performance and payment bonds. The increase is planned to sunset on June 30, 2016. The State University of New York and the Governor alike were large supporters of this modification which is meant to provide more opportunities for smaller and emerging contractors.

New York State has recently approved a new bill relating to anyone holding combative sports matches in the state. The new bill is named SB 2811 and requires anyone conducting combative sports matches to obtain a surety bond in order to operate legally and to guarantee the cooperation with state rules. The specific bond amount will be calculated using the New York’s regulations on a case by case basis.

The state of New York presented a new law regarding mortgage loan originators. The new law is named AB 6924 and requires mortgage loan originators to be covered by a surety bond. Should the originator be a member of staff or exclusive agent of an originating entity subject to present surety bond requirements, then the employer’s surety bond is acceptable to satisfy the requirement; as long as that the surety bond guarantees all mortgage originators not covered under a qualifying bond. Under present legislation, mortgage brokers must acquire a surety bond in a quantity spanning from $10,000 to $100,000 calculated by loan application volume. All mortgage lenders must attain a surety bond in a quantity ranging from $50,000 to $500,000, which is calculated by the volume of New York closed loans. Under AB 6924, the Superintendent of Banks is allowed to promulgate regulations pertaining to the requirements for the originator’s surety bond. AB 6924 also states that the surety bond amount would have to mirror the dollar amount of loans originated by the mortgage loan originator.

In New York, a new law was introduced affecting review processing for tax assessments. The new law requires a surety bond in relation to the review processes for tax assessments made by local authorities. Any individuals who dispute the tax or requests a reimbursement must deposit a quantity equivalent to the tax and any penalties unpaid with a surety bond from a surety licensed in the state for the costs of the proceeding. The petitioner has the alternative of acquiring a surety bond equal to the amount of taxes, as well as interest and penalties, in addition to the costs bond. Any individuals debating a denied refund claim is subject to the alike surety bond requirements.

There are multiple new laws that were enacted in the state of New York. The laws require a surety bond in connection with review procedures for tax assessments made by local authorities. Any individual who argues the tax or inquires about a refund is required to deposit a quantity equivalent to the tax and any penalties due, including a surety bond from a state-licensed surety company to cover the costs of the proceeding. The petitioner has the ability to post a bond equal to the amount of the taxes, including interest and penalties. Anybody disputing a denied reimbursement claim is subject to the same bond requirements stated above. The new laws for 2008 include AB 8831, which is for local real estate transfer taxes (Town of Northeast); and SB 7050 which is concerning local hotel and motel taxes (Clinton County).