Surety Bond News

New Jersey State enacted a new bill relating to local school boards. The new bill is named SB 1287 states that local school boards lacking a treasurer of school funds must have its secretary of the board to execute the responsibilities of the treasurer. The new bill requires the secretary to acquire a surety bond in of a quantity that the school board will establish. The present law already requires the secretary of the board to attain a surety bond of at least $2,000, conditioned on the authentic execution of responsibilities of the office. SB 1287 states that if there is no treasurer available, the secretary would not be asked to acquire a supplementary surety bond if they are an officer of the municipality, which constitutes the district, if the surety bond they gave guaranteeing the truthful execution of their municipal responsibilities also covered and guaranteed the dependable performance of their responsibilities as secretary. Additionally, a certificate of coverage with adequate quantities for the municipal and the board position should be certified to the local school board.

The state of New Jersey introduced a new law concerning residential mortgage brokers. The new law, which is named AB 3186, requires residential mortgage lenders and brokers to acquire a blanket surety bond in a quantity no less than $25,000 from a surety company permitted to do business within the State. The Commissioner of Banking and Insurance will establish the surety bond amount required through the regulations. The surety bond will cover the broker or lender’s qualified licensees, all mortgage loan originators and the broker or lender’s other staff and individual agents. The surety company has the option to terminate the surety bond with 30 days notification. AB 3186 encloses a net worth stipulation in addition to the surety bond for mortgage lenders, brokers and loan originators.

In the state of New Jersey, a new law was enacted regarding vehicle sales. The new law, titled SB 521, decreases the required surety bond amount to perform an off-site sale of recreational vehicles (RVs) from $500,000 to $10,000. SB 521 did not alter the bond amount required for an off-site motor vehicle sale, but it would have trimmed down the bond amount to $10,000 for such a sale. The new law states that if the surety bond is cancelled before the conclusion of the off-site sale for both motor vehicles and RVs, the dealer must acquire and file a substitute surety bond without delay with the Chief Administrator of the Motor Vehicle Commission. SB 521 became active upon enactment.