Exchange facilitators in Washington State must follow a new bill that was recently enacted within the state. The new bill is labeled HB 1078 and requires exchange facilitators to be licensed and to acquire a fidelity bond or bonds in a quantity no less than $1 million or post cash, securities or a letter of credit in an equivalent amount. HB 1078 authorizes direct actions on the surety bond or security. The SFAA believes that the bill confuses surety and fidelity bonds; they worked on this bill in the most recent session with the bill sponsor and they also wrote the sponsor once more to clarify the differences between a surety and fidelity bond this year. Nonetheless, the bill was enacted with perplexing bonding provisions.
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.