Alabama SB 320
Real estate appraisal management companies will be required to register and post a $25,000 surety bond. Under the regulations of this bond it will insure the company’s compliance with the law. The surety’s aggregate liability would not exceed the principal sum of the bond through this bill. The real estate company could also post cash or other appropriate security in lieu of the bond. Illinois SB 1539 will regulate real estate management companies and require the same bond amount under the existing law.
Effective June 1, 2009, Alabama Mortgage Loan Originators are required to be licensed and to obtain a surety bond. They may be covered under their employers’ bond who is subject to the Alabama Consumer Credit Act or the Mortgage Brokers Licensing Act. The surety bond must include an amount for the loan originator equal to the amount of loans originated.
Effective as of November 21, 2009, a surety bond is now required for mortgage brokers in the state of Alabama. The surety bond is needed if the broker does not meet net worth requirements of the state. The State Banking Department will determine the actual bond amount.
Effective as of November 21, 2009, a surety bond is now required for consumer lenders in the state of Alabama. The surety bond is needed if the lender does not meet net worth requirements of the state. The State Banking Department will determine the actual bond amount.
Be sure to check with the state (obligee) for more specific details and requirements.
Public Officials in Alabama are required, as of May 22, 2009, to post a surety bond to the County Treasury, instead of to the State as it has been previously. County employees, member or employee of public boards or commissions, or county directors may be required to post a bond as well. The bond must be in the amount of 0.5% of the yearly budget for that official, but cannot exceed $50,000. The actual bond amount is to be determined by the county commission.
Alabama has passed a new bill requiring proprietary schools to acquire a $20,000 surety bond. This school bond is to ensure the students will receive the instruction that they had paid tuition for. This bill was enacted on August 1, 2009.
To apply for this type of surety bond, visit our online application.
HVAC Contractors in Alabama have a new surety bond amount of $15,000 that may be required by the State Board of Heating and Air Conditioning Contractors. This used to be a $10,000 contractor license bond requirement, but was increased on August 1, 2009 with House Bill 184. Refrigeration contractors as well as “active” HVAC contractors have this bond requirement.
Alabama SB 249, which was enacted on May 21, 2009, created a licensing requirement for all mortgage loan originators, as well as a requirement for them to be covered by a surety bond. However, the law does allow mortgage loan originators to use the surety bond of someone whom they are an employee or an exclusive agent of, as long as that person is subject to the Mortgage Brokers License Act (SB 232) or the Alabama Consumer Credit Act (SB 234). This license bond needs to provide ample coverage for each mortgage loan originator in an amount equal to the amount of the originated loans.
This new law became effective in Alabama on June 1, 2009, but the licensing requirements will not go effective until June 1 of this current year.
Enacted on May 22, 2009, Alabama SB 111 mandated a couple of changes to the surety bond requirements for public officials in every county. Under the new law, any county employee or official that the county commission designates will be required to obtain a surety bond. County commissions can mandate that any director or member of a public board must post a surety bond in order to guarantee that they faithfully carry out the duties of their office, or assigned position. In the past, these surety bonds were made payable to the state of Alabama, but now they are payable to county treasuries. Specific bond amounts will be determined by the respective county commissions.
The following surety bond requirement is outlined in Alabama HB 428.
As of August 1, 2009, all proprietary schools in the state of Alabama are required by law to post a surety bond in the amount of $20,000. This commercial bond is conditioned on any payments required when a student paid tuition and or fees to the proprietary school, but did not receive the level of instruction or quality of teaching that they paid for. Such damages would only be paid if a court determines such allegations to be truthful.
The May 21, 2009 enactment of HB 358 created the position of county manager for Jefferson County, Alabama. In order to legally do business in Jefferson County, the new county manager must get a non-recourse bond (commercial bond) from a licensed, solvent surety company.
This surety bond must in the amount of $50,000 or more, and is required in order to guarantee the faithful performance of the county manager.
Enacted on May 13, 2009, Alabama House Bill (HB) 184 increased the bond amount that can be required by the State Board of Heating and Air Conditioning Contractors of certified heating and air conditioning contractors in the state. The amount that the State Board can require went up from $10,000 to $15,000.