Lance Surety Bond Associates, Inc.

HB 1646 License Bond – Mortgage Loan Brokers

This law requires loan brokers, mortgage loan originators and principal managers to be licensed. Also under this new law requires that a surety bond must be posted to cover originators and principal managers who are employees of the loan broker. The surety bond amount that will be posted is determined upon the total amount of residential mortgage loans originated in the previous calendar year. If the total is not greater than $5 million the bond amount will be $50,000. If the total amount is between $5 million and $20 million the bond amount posted will be $60,000. Any amounts that exceed $20 million will be posted in the amount of $75,000. This law became effective on January 1, 2010.

HB 1376: License Bond – Motor Vehicle Dealers

Motor Vehicle Dealers must post a surety bond in the amount of $25,000 in favor of the State according to HB 1376. The existing law had already required a license for this type of business. This bond must be obtained in order to instill the payment of fines, penalties, costs and fees that the Secretary of State assessed. This bond will secure the payment of damages owed to persons obtaining a judgment against the dealer for violations of the law. This became effective on July 1, 2009.

HB 1287: Miscellaneous Bonds – Funeral Planning

This act requires a surety bond to be posted in order to regulate funeral planning regulations. A surety bond, cash deposit or other security will be required to secure the storage costs of the decedent’s remains at a hospital, nursing home, funeral home or other institution during the proceedings if any action is brought to contest the declaration’s validity.

SB 2091: Viatical Settlements Act

A Surety bond in the amount of $125,000 must be posted in order to insurance financial responsibility for licensed viatical settlement providers. This bond must be issued by an insurer authorized to issue surety bonds in that state. If the provider has proof that financial instruments have been filed in one or more states where the provider is licensed this can be accepted in lieu of a bond or other security. This stands as long as the instruments comply with the new law’s provisions. There are other acceptable forms of security such as cash, certificates of deposit, securities or a letter of credit. This law will be effective on July 1st, 2010.

SB 1704: Miscellaneous Bond

SB 1704 requires that resident funds that a facility’s employees handle against, loss, theft and insolvency be secured by posting a security bond by their facility. This law will be become effective on July 1, 2010.

HB 2284: Miscellaneous Bond

Under new enactment for HB 2284 will eliminate the current schedule of amounts for a surety bond or insurance policy. A scheduled amount was previously required under existing law for personal property warehouseman. This new law will work in compliance with the Illinois Commerce Commission to determine the amount that needs to be posted, rather than having a set statute. In previous law the amount was based on the size of the warehouse and would range from $5,000 to $25,000. This would also include an additional $5,000 for each additional $100,000 net square feet or net cubic feet of volume in the warehouse. This new law became effective on January 1, 2010.

HB 264: Depository Bond

The Illinois Urban Development Authority was created under HB 264. Under this it requires its depositories to post a surety bond. This surety bond must be issued in the condition of the safekeeping of money be deposited and also the repayment of the deposits. The minimum bond amount posted must be equal to at least the maximum sum expected to be on deposit at any given time.

HB 169: License Bond—Mortgage Brokers and Lenders

This will repeal the existing bond requirements for mortgage lender and brokers. The previous law required a surety bond to be posted in the amount of $25,000 plus another $10,000 per branch. The State now has a mortgage recovery fund under the new law instead of a surety bond. This law became effective July 1, 2009.

SB 1218: License Bond – Mortgage Brokers

This bill will incorporate the federal definition that a mortgage loan originator will be required to be covered by a surety bond in an amount of the loans originated. The loan originator is also covered if he/she is an employee or an exclusive agent of a licensee; this will fulfill the bonding requirements as well. Under this new law it will require that the bond must provide coverage for all originators. This bill became a law because the Governor vetoed the bill and the legislature overrode the veto.

HB 682: Public Official

Under HB 682 Byron City Council is now authorized to hire a city an administrator. The administrator will now be required to post a surety bond in the amount that the Council will determine. The City of Byron is now indemnified by this bond for the administrator’s default, misfeasance, or nonfeasance in the performance of his or her duties.