Washington Exchange Facilitator Bond

WashingtonExchange facilitators in Washington State must follow a new bill that was recently enacted within the state. The new bill is labeled HB 1078 and requires exchange facilitators to be licensed and to acquire a fidelity bond or bonds in a quantity no less than $1 million or post cash, securities or a letter of credit in an equivalent amount. HB 1078 authorizes direct actions on the surety bond or security. The SFAA believes that the bill confuses surety and fidelity bonds; they worked on this bill in the most recent session with the bill sponsor and they also wrote the sponsor once more to clarify the differences between a surety and fidelity bond this year. Nonetheless, the bill was enacted with perplexing bonding provisions.