Surety Bond News

Legislators in Washington State have implemented a new law relating to the surety world. The new law is named SB 5769 and implements new standards for coal-fired electricity generating facilities which states that facilities subject to closure under present law must guarantee that funds will be accessible for the closing of the facility while agreeing with its decommissioning plan; surety bonds are among the options to guarantee the funds will be available.

Washington State fundraisers have a new surety bond requirement to follow. The new law is titled HB 1485 and requires commercial fundraisers for charitable organizations to obtain a bond if they handle the charitable organizations funds; the bond will guarantee the faithful handling of the funds. The surety bond amount is yet to be determined.

Money transmitters in the State of Washington must follow a new law that was recently enacted. The new law is labeled SB 6371 and modifies the quantity of the required surety bond for money transmitters. The previous legislation required a surety bond of at least $10,000 but could not surpass $50,000, including $10,000 for each business location. The sum of surety bonds could not surpass $500,000. SB 6371 states that the quantity of the bond is calculated by both the dollar amount of the previous year’s money transmissions and payment instruments. The bare minimum quantity remains at $10,000 but the maximum surety bond amount is $550,000 according to SB 6371.

Mortgage loan servicers within the State of Washington must cooperate with new legislation that was recently enacted. The new law, which is titled HB 2608, requires mortgage loan servicers to follow the present bonding requirements for other mortgage loan professionals. Mortgage loan servicers must acquire a surety bond of a minimum quantity of $30,000 which is calculated by the yearly dollar amount of loans executed.

The State of Washington presented new legislation concerning appraisal management companies. The new law is titled HB 3040 and requires appraisal management companies to acquire a surety bond in a quantity of at least $30,000. The surety bond must be from a State authorized surety company and the aggregate liability of the surety can not surpass the surety bond’s penal total. The surety bond is conditioned on the licensee’s cooperation with the related legislation and policies. HB 3040 authorizes the licensee to “maintain unimpaired capital, surplus, and long-term subordinated debt” in the place of a surety bond.