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Surety Bond Blog

Legislative updates and editorial columns from the surety experts at JW Surety Bonds; the largest surety bond company in the U.S.

Tennessee Depository Bond Update




TennesseeModifications have been made to the surety requirements for depository bonds in Tennessee. The new law enacted is named SB 17 and amends the surety qualifications for depository bonds securing state funds. The previous law stated that the surety business must be rated in the uppermost class for claims paying capability by at least two nationally renowned statistical rating services. Alternatively, SB 17 authorizes the surety company to be in one of the two highest categories by one or more rating organizations. The new law also caps the quantity of the surety bond at $30 million or half of all required collateral for a financial establishment acting as a state depository, whichever is less. SB 17 also boosts the notification period for termination by the surety company from 30 days to 60 days.


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