SB 355 is a new bill that was introduced in the state of Nevada relating to debt-management service providers. The new bill implements the Uniform Debt Management Services Act of the National Conference of Commissioners of Uniform State Law. SB 355 requires debt-management service providers to acquire a $50,000 surety bond. The attorney General has the option to boost or reduce the required quantity of the surety bond based on specific conditions of the licensee. The new bill asks the sureties to have an “A” rating from a nationally acknowledged rating system and must be licensed within the State. The surety bond runs to the State for its advantage and for those who enter in to agreements with the provider. The surety bond must be active for a supplementary two years after the registrant halts practice of debt-management services in Nevada. SB 355 authorizes a certificate of insurance or a letter of credit in place of a surety bond. The new bill becomes active “upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act; and…on July 1st, 2010, for all other purposes.”
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.