Tag Archives: Tennessee

Road Rage Over Untapped Surety Bonds

Unfinished roads in the city of Murfreesboro, TN seem to be giving many residents some rage. Surety bonds were obtained to help get these roads finished in multiple subdivisions, but the city council is considering using taxpayer money to complete a job that is the housing developer’s responsibility.
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Tennessee Real Estate Appraisal Management Bond

TennesseeReal estate appraisal management companies in the State of Tennessee must abide by a new law. The new law, which is referred to as SB 3155/HB 3191, requires real estate appraisal management companies to register and acquire a surety bond in the quantity of $50,000. The particulars of the surety bond requirement will be established via regulations.

Tennessee Real Estate Appraisal Management Bond

TennesseeA new bill was enacted affecting real estate appraisal management companies in the State of Tennessee. The new bill, which is titled HB 3191, requires real estate appraisal management companies to register and acquire a $50,000 surety bond. The new legislation states that the particulars regarding the surety bond would be established by regulation. HB 3191 became active upon enactment for the purposes of implementing such regulations, but the registration requirements will not be active until July 1st, 2011.

Tennessee Commissioner of Commerce Bond Update

TennesseeSB 2299 is a new bill that was presented in the State of Tennessee relating to the Commissioner of Commerce and Insurance. The new bill, as presented, would have authorized the Commissioner of Commerce and Insurance to promulgate regulations for a substitute security system for workers’ compensation plans, requiring self-insured members of staff to secure all or a fraction of their self-insurance plan using a state guaranty fund. Involvement in the fund would have been obligatory. The law was replaced and as enacted, the new bill terminates some of the particulars regarding the security that may be acquired under present law and allows the Commissioner to implement policy relating to these specifics. The revoked law stated that surety bonds must be issued by an insurer licensed to do business within the State that sustains an “A” rating from A.M. Best Company. The previous law also required 90 days notification for termination. SB 2299 did not alter the quantity required or the forms of security that will be authorized. The new bill became active on July 1st, 2009.

Tennessee Mortgage Broker Bond

TennesseeSB 2279 is a new law that was introduced in Tennessee State regarding mortgage brokers. The new law terminates the use of a letter of credit (LOC) in the place of a license bond and requires mortgage brokers and lenders to acquire a surety bond for the renewal of their registration in the year 2010. The previous law obliged mortgage brokers to attain a $90,000 surety bond while mortgage lenders need a $200,000 surety bond. SB 2279 requires a surety bond calculated by the total dollar amount of loans originated and would have to supply coverage for all mortgage loan originators. The banking commissioner will establish the surety bond amount in the policy. Both mortgage brokers and lenders would be authorized to sustain their surety bonds in the present quantity until the renewal of their registration in 2010.

The new law also produces an instantaneous requirement for mortgage loan servicers to attain a surety bond in the amount of $200,000. Industrial lenders and thrifts not making or brokering mortgage loans must acquire a $50,000 surety bond, with an alternative of attaining a letter of credit under the new law.

Tennessee Tobacco Manufacturer Bond

TennesseeTennessee State introduced a new law relating to tobacco manufacturers. The new law is referred to as SB 2169 and requires non-participating manufacturers that are not included in the directory of approved tobacco manufacturers to acquire a surety bond in order to be included on the list. These companies do not partake in the State’s master settlement agreement and instead put funds into an escrow account as directed under present legislation. The surety bond must be in a quantity of $100,000 from a corporate surety “located within the United States.” The surety bond is conditioned on the non-participating manufacturer’s execution of all of its responsibilities and obligations under this chapter and the Tennessee Tobacco Manufacturers’ Escrow Fund Act of 1999. SB 2169 became active upon enactment.