Surety Bond News

The state of Pennsylvania activated a new law regarding correspondent lenders. HB 2179, activated 07/08/2008, now requires correspondent lenders to follow the same up to date license bond requirements mortgage brokers abide by; the mortgage broker requirement is still a $100,000 license bond. HB 2179 improves the regulatory requirements for mortgage lenders, correspondents and brokers while it also generates a class of loan originators.

The state of Pennsylvania enacted HB 1152 regarding the Uniform Commercial Code. The new law, enacted on 04/16/2008, conforms the Uniform Commercial Code to the Restatement of the Law of Surety by way of the American Law Institute. In the midst of the numerous modifications, a surety is now defined to consist of any “other secondary obligor” as well as the existing classification as a “guarantor.” HB 1152 became active 60 days after its own enactment on June 16, 2008.

SB 1063, enacted in the state of Pennsylvania, allows local governments to cooperate while collecting taxes. Under the previous law, each governmental unit had their tax officers collect their own taxes; it was a requirement for the local tax officers collecting to be bonded. The bond required of the officers had to be equal to the maximum amount of taxes that the officer may have in their possession at any point in time. Under the new tax collection procedures, a tax committee will be created and the bond requirements for the tax officers of local governments are basically the same to the prior bond requirements; the only difference is the amount required. SB 1063 allows the tax committee to establish the bond amount so that it will be adequate to secure the officer’s responsibility including insurance, fiscal controls and other risk management/loss prevention that a given tax collection district uses.

Pennsylvania state dog kennel owners must cooperate with a new law titled HB 2525. In the event of any dogs being confiscated and an administrative appeal being filed caused by violations of the Commonwealth’s animal cruelty laws, dog kennels have to post a surety bond. The size of the bond is based on the amount of dogs removed and must be equal to the expected cost of transport, care and nourishment for 31 days while the dogs are impounded. HB 2525 authorizes a cash deposit equal to 10% of the required bond amount.

There is a new law recreational vehicle dealers must abide by in the state of Pennsylvania. The law is named SB 1019, which requires recreational vehicle dealers to post a $30,000 license bond that must be issued by a surety company licensed in the Commonwealth. The required bond is conditioned on cooperation with all of the Commonwealth’s laws and policies. The bond will also operate as security for claims that an agency of the Commonwealth files for any money due such as unpaid taxes, licenses, fees, payment of a criminal punishment/fine after conviction, payment of a civil penalty or monetary amount after the entry of judgment.