There is a new law regarding money transmitters in South Dakota titled HB 1009. The previous law required a cash deposit or securities of $100,000, and $5,000 for each extra location in the state. The maximum amount one could deposit was $250,000 under prior law. As a replacement for the deposit or securities, a surety bond was allowed to be posted in the same amount. Under law HB 1009, letter of credit, a surety bond, or other security is required in the sum of $100,000. The new law would permit the Director of the Division of Banking to increase the amount of the bond/security if the licensee’s financial condition is weakened, as evidenced by a reduction in financial losses, net worth, etc. The new law also raises the maximum amount of the bond/security from $250,000 to $500,000. Under existing law, the surety’s accountability would be limited to the penal sum of the bond; the bond is cancellable. The new law allows direct actions to be taken on the bond/security from any applicant in opposition to the licensee. The Director of the Division of Banking would be allowed to take action against the bond or security.
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South Dakota Money Transmitter Bond
September 28, 2009 by Eric WeisbrotCategory: Commercial Bonds, Surety NewsTags: money transmitter, money transmitter bond, SD, South Dakota | Comments (0)
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South Dakota Abstracters of Title Bond Amendment
September 25, 2009 by Eric WeisbrotHB 1008, enacted on 02/12/2008, changes the bond requirement to simplify it for abstracters of title concerning registration in the state of South Dakota. Under the old law, the bond amount requirement was calculated by the population of the county. The updated law requires that if the county population is under 15,000, the required bond amount is $25,000; should a county’s population be over 15,000, the required bond amount is raised to $50,000. HB 1008 became active on July 1, 2008.Category: Commercial Bonds, Surety NewsTags: bond requirements, legislation, SD, South Dakota, surety bond | Comments (0)
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South Dakota Grain Buyer (Dealer) Bond
September 21, 2009 by Eric WeisbrotThe state of South Dakota has enacted a new law titled SB 44. The new grain dealer law alters the amount of the surety bond required from grain dealers, now referred to as grain buyers under SB44. Under the former law, the required surety bond amount was $50,000. The new law establishes two license classifications for the grain buyers, Class A and B. The Class A and B bond requirement is based on a rolling average of the amount spent on grain by the license applicant in South Dakota in the last three calendar years. For novice grain buyers, the bond amount is based on their predicted purchases. Grain buyers with less than three years experience will have to figure out the average actual purchases for all of their past experience as a buyer to base the amount of their bond on. The bond is valid for all grain purchases and all of the grain buyer’s company locations. For a Class A license:
Dollar Amount of Grain Purchased Bond Requirement < $2,000,000 $ 50,000 $2,000,001 – $10,000,000 $75,000 $10,000,001 – $50,000,000 $100,000 $50,000,001 – $100,000,000 $200,000 > $100,000,000 $300,000 For a Class B license:
Dollar Amount of Grain Purchased Bond Requirement < $2,000,000 $50,000 $2,000,001 – $10,000,000 $75,000 Category: Commercial Bonds, Surety NewsTags: bond requirements, grain buyer, grain buyer bond, grain dealer, grain dealer bond, legislation, SD, South Dakota, surety bond | Comments (0)
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South Dakota Mortgage Broker Bond Amendment
September 16, 2009 by Eric WeisbrotEnacted on 03/13/2008, SB 157 allows a mortgage brokerage to acquire one bond that will fulfill the bond requirement for all individual applicants that the brokerage employs. Under existing South Dakota law, mortgage broker’s license applicants must post a $25,000 surety bond individually.Category: Commercial Bonds, Mortgage Broker Bonds, Surety NewsTags: bond requirements, legislation, mortgage broker bond, SD, South Dakota, surety bond | Comments (0)
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South Dakota Trust Company Surety Bond Abolished
September 11, 2009 by Eric WeisbrotThere is a new law regarding trust companies in the state of South Dakota labeled SB 85. SB 85 modifies the law which requires that a fidelity bond, surety bond, or directors and officers insurance policy be acquired by trust companies for the safeguard of its fiduciary clients. SB 85 revises the original law so that both a fidelity bond and a D&O insurance policy will be required; the option of a surety bond is now eliminated.Category: Commercial Bonds, Surety NewsTags: bond requirements, legislation, SD, South Dakota, surety bond, Trust Company Bond | Comments (0)
