Surety Bond News

Updated surety law offers a new option for manufactured home installers in New Hampshire. The new bill is titled SB 116 and allows an employer to obtain a surety bond that is required of manufactured home installers as opposed to an individual installer having to obtain the bond.

Postsecondary schools in New Hampshire are affected by a new law that was enacted this past June. The new law is named HB 2 and requires a private postsecondary career school to obtain a surety bond to guarantee the fulfillment of their obligations relating to contracts for tuition and other fees between the school and the students. The bond will be calculated by 10% of the gross tuition it received, but can be no less than $10,000. Should a school not fulfill its obligations, HB 2 states that the bond will be canceled and its proceeds will be dispersed by the Commissioner of the Department of Education.

Life settlement providers must abide by a new law in the State of New Hampshire. The new law is labeled HB 660 and enacts the model act for both life settlement providers and brokers of the National Association of Insurance Commissioners (NAIC). Under the new law, providers and brokers are required to attain a $250,000 surety bond. Surety bonds are amongst the financial instruments authorized to satisfy this requirement.

SB 56 is a new study measure in the State of New Hampshire concerning the Commission to Study Issues Relative to Groundwater Withdrawals. SB 56 directs the Commission to Study Issues Relative to Groundwater Withdrawals to examine the amount of financial accountability that would be essential for hefty withdrawals of groundwater. The Commission must consider possible harm to the environment and adjacent wells, including unreasonable reductions in well capacity or contaminant migration from off-site sources. The bill initially stated that a financial instrument would have been required, including “bonding or insurance, in at least the quantity of $1 million.” The financial instruments would have been necessary to cover any environmental destruction, including groundwater corruption and unwarranted reductions in well capacity. The bill was transformed into a study measure in the Senate.

HB 1519 is new legislation which was enacted in the State of New Hampshire concerning meals and rentals operators. The new law rescinds the $5,000 surety bond requirement for meals and rentals operators. The surety bond was required to guarantee the payment of the applicable taxes. Initially the law would have instituted a risk assessment system for deciding whether a surety bond would be required; the SFAA believed this had unfavorable selection problems. The law was replaced for a full cancelation of the surety bond requirement, which also was under deliberation under other legislation. HB 1519 became active upon enactment.