The state of Idaho implemented a new law regarding collection agency bond requirements. The new law, HB 451, modifies the permit and bonding requirements for collection agencies and debt/credit counselors. The prior law demanded a permit for agencies and counselors and a surety bond per every permit. HB 451 requires only one surety bond and has to be acquired as an alternative to two bonds as under previous law. The amount of the required bond was not altered. HB 451 was enacted on April 1st, 2008.
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Idaho Collection Agency Bond Requirement Update
December 17, 2009 by Eric WeisbrotDiscuss: Comments (0)
Category: Commercial Bonds, Surety News
Tags: bond requirements, Collection Agency Bond, ID, Idaho, legislation, South Dakota, surety bond
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New Mexico Contractor License Bond
November 9, 2009 by Eric Weisbrot
Enacted on 02/28/2008, a new law referred to as HB 199 was put in place in the state of New Mexico. HB 199 cancels the existing contractors’ license bond requirement under which the bond amounts are minor and based on the size of projects completed; the law also substitutes it with a $10,000 bond from a state licensed surety. Payments from the surety bond can solely be used to cure code breaches of a licensee. Any claims made opposing the bond must be within two years after the final inspection or within two years of issue of a certificate of occupancy, whichever is sooner. The entire aggregate liability of the surety can not surpass the face amount of the surety bond; there is also a 30 day cancellation condition. The final language of the new law is considerably enhanced from the original bill draft. Multiple groups worked on the new bill including SFAA, AIA and CNA Surety. Discuss: Comments (0)
Category: Commercial Bonds, Contractor License Bonds, Surety News
Tags: bond requirements, Contractor License Bonds, contractors, legislation, South Dakota, surety bond
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South Dakota Money Transmitter Bond
September 28, 2009 by Eric Weisbrot
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.Discuss: Comments (0)
Category: Commercial Bonds, Surety News
Tags: money transmitter, money transmitter bond, SD, South Dakota
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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.Discuss: Comments (0)
Category: Commercial Bonds, Surety News
Tags: bond requirements, legislation, SD, South Dakota, surety bond
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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 Discuss: Comments (0)
Category: Commercial Bonds, Surety News
Tags: bond requirements, grain buyer, grain buyer bond, grain dealer, grain dealer bond, legislation, SD, South Dakota, surety bond
