Debt-management services are impacted by a new law in Tennessee State which is labeled SB 812. The new law enacts the Uniform Debt Management Services Act of the National Conference of Commissioners of Uniform State Law. SB 812 requires debt-management service providers to acquire a $50,000 surety bond. The Attorney General may amplify or reduce the required amount of the surety bond calculated by specific conditions of the licensee. The new law requires surety companies to receive an “A” rating from a nationally acknowledged rating service and must be licensed within the State. The surety bond runs to the State for the advantage of the state and those who enter into agreements with the provider. The surety bond must be active for a further two years after the registrant stops executing debt-management services in Tennessee. SB 812 authorizes a certificate of insurance or a letter of credit in the place of a surety bond. The new law becomes active on July 1st, 2010.
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.