Surety Bond News

A new law regarding money transmitters was implemented in the State of Washington named SB 6371. The new law modifies the quantity of the surety bond required of money transmitters. The previous law required a surety bond in a minimum base quantity of $10,000 but could not surpass $50,000, in addition to $10,000 per location. The sum bond amount could surpass $500,000. SB 6371 states that the quantity of the surety bond would be calculated by the dollar volume of the previous year’s money transmissions and the dollar volume of the previous year’s payment instruments. The minimum quantity would remain at $10,000, but the utmost surety bond amount would be $550,000 according to the bill’s provisions.

The State of Washington has implemented a new law concerning appraisal management companies. The new law is titled HB 3040 and requires appraisal management companies to be licensed and acquire a surety bond that can be no less than $30,000. The surety bond must be from a state authorized surety company and the aggregate liability of the surety could not surpass the penal sum of the surety bond. The bond is conditioned on the licensee’s cooperation with the applicable legislation and policy. HB 3040 allows the licensee to preserve unimpaired capital, surplus and long-term subordinated debt in the place of a surety bond.

A new bill was enacted in the State of Washington relating to health care services. The new bill, which is referred to as SB 5480 regulates discount plan organizations that offer plans to consumers for health care services. SB 5480 requires a surety bond in a minimum quantity of $35,000. As an alternative to the surety bond, cash securities or other financial instruments are authorized to be deposited in the same quantity.

SB 5354 is a new Washington State law that was enacted relating to a county public hospital capital facility. The new law directs the county treasurer to serve as the treasurer for a county public hospital capital facility. It also authorizes the hospital’s commission to choose and appoint its own treasurer, who must acquire a surety bond in a quantity that the commission will establish. SB 5354 authorizes the hospital to require any member of staff managing the hospital’s funds or securities to attain a surety bond. The new law also calls for a surety bond from depositories holding hospital funds in a quantity nt less than the quantity deposited.

Mortgage brokers must abide by a new bill that was enacted in Washington State. The new bill, which is labeled HB 1749, addresses mortgage brokers, who are required under present legislation to be licensed and bonded. The previous law required a license bond in a quantity ranging from $20,000 to $60,000. HB 1749 terminates the existing surety bond amount, and states that the Banking Commissioner will promulgate the surety bond amounts, which will differ according to the yearly loan origination volume of the broker. The new legislation also terminates other alternatives to bonding authorized under the previous law. Should the surety bonds under the new requirements not be obtainable, then the Director of Financial Institutions will relinquish the requirement. HB 1749 provides for a mortgage broker recovery fund. Only individuals acquiring a judgment in court regarding damages sustained as a result of a mortgage broker can make recovery from the fund.