Lance Surety Bond Associates, Inc.

Boat dealers will be required to be licensed and to also post a surety bond in the amount of $50,000 from a corporate surety company. The bond will be conditioned on the terms of the license and the licensee’s responsibility to be in compliance with applicable law. The licensee will also need to indemnify the lien holders on the boat for losses incurred as specified in the bill’s provisions.

Bond requirements for money brokers will be revised through this bill. Under current law a $25,000 surety bond is required to be posted. Through the new bill requirements there must be a minimum $25,000 bond with the amount to be determined by rules. The money broker’s loan origination volume in the previous year will determine the amount of the bond. A larger bond may be required by the Commissioner of Financial Institutions. This is only if he or she determines it necessary in order to protect the public interest.

The combination of these bills would revise the regulatory scheme for home service contracts, requiring the service contract provider to meet certain financial requirements. This includes posting a surety bond or other security. The bond that needs to be posted cannot be for less than 5% of the gross premium received, less claims paid, on the sale of the service contract for all service contracts issued and in force in the state. The bond amount can not be less than $25,000 and a funded reserve account would be required in addition to the bond. Instead of posting the bond or having a funded reserve account the service contract provider could maintain a net worth or stockholder’s equity of $25 million, either on its own or together with its parent company

Any property that has not been legally occupied for at least 12 months and is in need of rehabilitation will be in line for new procedures produced by this bill to deal with those properties. If complaints arise against the maintenance of the abandoned properties the owners can then submit a plan of rehabilitation. Or the owners may post a surety bond for an amount equal to 125% of the costs of rehabilitating the property.

Real estate closing agents will be required to post a $100,000 surety bond that will secure the closing agent’s cooperation with the applicable law and the agent’s contracts. The bond will be posted because it will be available to pay the costs and penalties incurred as a result of the closing agent’s failure to comply. This bond will have to cover all of the closing agent’s employees and independent agent’s. The insurance agent that is providing this bond to the closing agent must be licensed in that particular state.

Election Recounts:

Any losing candidate of an election for a public office will be required to post a bond or other security in connection with filing for a recount. Under this bond the costs of the recount process will be secured and which the losing candidate would be responsible.

Debt Settlement Service Providers:

Under this bill debt settlement service providers will be regulated to where registration is required along with a surety bond if the provider has any consumer deposit funds in an account to be used for the payment of debt settlement fees and/or for making payments to debt collections/creditors. The new bonding requirement will have to be in the minimum amount of $10,000 for the first three months of the registration period, after which it will have to be in the amount no less than the average of the balance held in the provider’s dedicated consumer accounts during the previous three months. This bond will not be allowed to be any less than $10,000 or larger than $1 million. This bond must be issued by a surety agency licensed in that particular state and it must be in compliance with the appropriate state and federal laws/regulations.

License Bond – Towing Companies

The purpose of SB 570 would be to repeal the bond requirement for towing companies that tow vehicles from parking lots. Under current law a $20,000 bond must be posted to guarantee the payment of any liability incurred under the law.

SB 2913/AB 4298: License Bond – Mobility Dealers

Mobility dealers would be subjected to existing licensing and bond requirements for motor vehicle dealers. Anyone who sells more than five mobility vehicles in a year is considered a Mobility dealer. These vehicles are specially equipped to transport a person with a disability and include mechanical devices such as a wheel chair or ramps. Under current law a 10K bond must be posed by motor vehicle dealers if they sold less than 200 vehicles in a calendar year. A 25K will be required if the dealer sells more than 200 vehicles in a calendar year.

This house bill will rewrite the existing law for wholesale potato dealers. Under current law the dealers must be licensed, and a form of financial security is sometimes required by the State Seed Commissioner. A surety bond is an example of a financial security accepted by the State Seed Commissioner. The new bill will make the financial security requirement mandatory as a condition of licensure instead.