Check cashing services in the state of Kentucky are affected by a new law titled HB 444. The new law authorizes licensees for check cashing or deferred deposit service businesses to attain a surety bond to satisfy the security requirements following present law, which beforehand only accepted irrevocable letters of credit, savings certificates and trust funds. The surety bond has to be in the quantity that present law requires, which is calculated by the amount of business locations. HB 444 also modifies the schedule for the surety bond amounts to provide for larger amounts and additional locations. The schedule for the quantities required demanded by the new law is as follows: $50,000 for one business location; $100,000 for two to five locations; $150,000 for six to ten locations; $200,000 for 11 to 20 locations; $300,000 for 21 to 30 locations; $400,000 for 31 to 40 locations; and $500,000 if the licensee has 40 or more business locations. The previous law only provided a range of one to ten or more business places and capped the surety bond at $200,000.
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. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.