Surety Bond News

SB 608 is a new Oklahoma State law relating to “nonparticipating tobacco manufacturers” that was enacted this year. The new law requires “nonparticipating tobacco manufacturers” to acquire a surety bond to be included in the State’s directory of tobacco manufacturers and cigarette varieties. The nonparticipating manufacturers do not partake in the Master Settlement Agreement and as a substitute place funds in escrow account. The manufacturers also may be required to attain a surety bond if they have been predicted to create amplification of risk for disobedience of the law. The surety bond must be $50,000, or the quantity the manufacturer is obliged to deposit due to its prior calendar year’s sales in Oklahoma, whichever is more. SB 608 became active on January 1st, 2010.

A new bond requirement update was introduced on February 2nd, 2009 concerning the juvenile court in the state of Oklahoma. The new law is titled HB 2029 and terminates the surety bond that the juvenile court could require of parents or appointed guardians that are charged with supervising an adolescent that has been placed on probation in their residence or in the custody of the appointed guardian. HB 2029 was enacted on 5/21/2009.

Employees of the Office of State Finance are affected by a new law that was enacted in the state of Oklahoma. The new law is named HB 2015 and alters the surety bond required of officials and staff of the Office of State Finance sanctioned to approve claims and payrolls. HB 2015 boosts the surety bond amount from a quantity that is no more than $25,000 to a quantity that is no less than $50,000; the Director of the Office of State Finance will establish this amount. The new law subjects all these officials to this surety bond requirement, while the previous law made it relevant to all officials not already under any other surety bond for such reasons. HB 2015 became active on July 1st, 2009.

The State of Oklahoma enacted a new law relating to cemetery merchandise contracts. The new law is labeled HB 1618 and amends the surety bond requirements for pre-paid cemetery merchandise contracts. At the present time, establishments handling such contracts must have a trust fund established or must acquire a surety bond. Under the previous law, the surety bond had to be in a quantity that was no less than the aggregate value of the unsettled liabilities on undelivered prepaid cemetery merchandise contracts. HB 1618 requires the surety bond to be “the full principal amount of the services sold.” HB 1618 became active on July 1st, 2009.

New legislation was introduced in the State of Oklahoma regarding civil litigation cases. The new law is labeled HB 1603 and caps appeal bonds in civil litigation cases at $25 million. Present legislation caps the surety bond for these cases at 100% of the judgment, exclusive of interest and expenses. The present law allows judgment debtors that can demonstrate that they will undergo considerable financial damage, as stated in the law, by having to attain the appeal bond, can have the surety bond quantity decreased. HB 1603 states that subject to these conditions, the surety bond is capped at $25 million.

Additionally, for cases concerning the Tobacco Master Settlement Agreement, the present cap has been modified so that the surety bond quantity can be equivalent to 10% of the net worth of the judgment debtor. The present law already capped the surety bond quantity at 100% of the judgment, excluding interest and expenses, or $25 million, whichever is less. HB 1603 caps the surety bond for tobacco cases at the least of these three quantities. The new law became active on November 1st, 2009.