Lance Surety Bond Associates, Inc.

SB 110: License Bond – Credit Repair Services

This revokes the previous requirement that a surety bond must be posted for credit service organizations for 2 years after the organization ceases operations in the state or after it has filed notice with the Attorney General.

Home Food Service Plans Act SB 117 requires sellers of this plan to be licensed and to always post a surety bond from a surety company licensed in the state of Colorado. The Commissioner of Agriculture will determine the exact bond amount needed, but it will never be set beyond $50,000.

Arkansas no longer has a surety bond requirement for a proposed insurer to obtain certification from the Insurance Department.  The Department still accepts other forms of security.

Arkansas changed their current law regarding Money Transmitters.  The State eliminated any other form of security besides a surety bond.  Surety Bonds are now a requirement for money transmitters to be in compliance with the state.

Arkansas revised their current law for combative sports events which now requests a surety bond in the amount of $1,000.  The combative sports that fall under this category are semi-professional and amateur wrestling, kick-boxing, boxing and martial arts.

Effective on March 25, 2009, Arkansas now requires performance bonds, or more specifically lottery bonds (or lotto bonds), from vendors to stay in accordance with the Arkansas Lottery Commission.  The Commission will determine the bond amount for each specific vendor.  Retailers must also place a lottery bond in the amount equal to two billing periods’ average ticket sales.

Surety bonds must also be obtained for Arkansas Lottery Commission employees who handle lottery revenue or the Commission’s funds.  The Commission will determine the bond amount necessary for these employees.

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, so be sure to check with the state 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.

In each of the 50 states, individuals who sell or serve as brokers for the sale of real estate are required to obtain both the pertinent licenses and real estate agent bonds and/or real estate broker bonds in order to legally conduct business. For these types of surety bonds, the respective state is the obligee (entity requiring the surety bond), while the real estate agent or broker becomes the principal by the nature of them being required to post the bond.

What exactly do they guarantee?

States require these surety bonds in order to guarantee that real estate agents and brokers will abide by all applicable laws governing real estate sales. They also guarantee that agents and brokers will correctly account for and remit money held in trust for their customers. Furthermore, real estate agents and brokers bonds provide protection for the public against any misrepresentation or fraud attempts.

Are real estate agent and broker bonds written freely?

While real estate agent bonds and real estate broker bonds are written frequently, underwriters do apply necessary scrutiny when writing these types of surety bonds. As with most bond types, underwriters are required to conduct a thorough review of both the applicant