SB 606 is a new law that was presented in Virginia State concerning motor vehicle title lenders. The new law requires motor vehicle title lenders to be licensed and to acquire a surety bond in the quantity of $50,000 for each location, but can not surpass $500,000. Initially, the bill would have required a surety bond in the quantity of $10,000 for each location, not to surpass $50,000; the bill was exchanged for a larger surety bond. The surety bond would be conditioned on the licensee executing all written agreements with borrowers or potential borrowers, properly and accurately accounting for all funds received by the applicant/licensee in its licensed business, and the cooperation with all related legislation in managing their business. The bill would authorize direct actions on the surety bond, but the surety’s aggregate liability would be restricted to the surety bond quantity.
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.