Surety Bond News

On August 22nd, 2008, Illinois enacted a new law concerning uniform commercial code. Titled SB 2080, the new law re-defines surety to encompass any other secondary obligor pursuant to the Restatement of the Law of Surety that the American Law Institute issued recently. The present definition of surety is a guarantor. These alterations to the law do not have substantive influence on surety. SB 2080 became active on June 1, 2009.

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.