In Oregon, a new bill was introduced relating to exchange facilitators. The new law, which is named HB 3484, regulates exchange facilitators; they facilitate like-kind property exchanges under the federal tax code. HB 3484 requires such individuals to be licensed, and must acquire at least one of the following: a fidelity bond or bonds in a quantity that is no less than $1 million from a State licensed insurer; post cash, securities, or an irrevocable letter of credit for the equal quantity. The new law also authorizes facilitators to deposit the funds utilized in an exchange in to an escrow account or an eligible trust. The facilitator also has the option to be listed as a named insured on one or more fidelity bonds that has an aggregate amount that is no less than $1 million.
Eric is the Webmaster of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.