Indiana State lenders are affected by a new law that was enacted within the state. The new law is named SB 328 and terminates the cap on the surety bond amount for lenders making diminutive loans, which is referring to loans of $550 or less. The previous law required a $50,000 surety bond for every location where small loans will be performed. The surety bond quantity could not surpass $500,000 under former law. SB 328 states that the Department of Financial Institutions will establish the greatest surety bond amount possible instead.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.