Lance Surety Bond Associates, Inc.

CONNECTICUT SB 1110

With bill will revise the existing licensing laws for mortgage lenders, brokers and originators. Under existing law a surety bond was required to be posted in the minimum amount of $40,000. This was enlisted to regulate the bond amount by the licensee’s loan origination volume. The revised bill will require mortgage lenders and correspondent mortgage lenders to post a the minimum of $100,000 surety bond and mortgage brokers would be required to post a minimum $50,000 bond. The licensee would have to obtain a bond that covers all loan originators that the licensee sponsors at all locations after the initial bond that covers the license for the main office.

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 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.

Prior law in Connecticut required a surety bond be posted in the amount of $250,000 for residential underground heating oil storage tank system contractors. HB 6501 eliminates this bond requirement and is effective upon enactment date June 9th, 2009.

With the recent enactment of SB 114 Colorado commodity agents are no longer required to have license or surety bond for the license.

Under the American Recovery and Reinvestment Act through the federal stimulus package, HB 1346 provides for the use of the funds provided to the state of Colorado. Under this new law state agencies are now allowed to come together and construct separate legal entities. These legal entities are known as recovery and reinvestment finance authorities who have projects that are funded through this package. If you are appointed as a custodian of a finance authority fund you must post a surety bond in the mount that the authority’s board requests.

Greenway District, Flood Control and Fountain Creek Watershed were created by the new law SB 141. This new law requires custodians to post a surety bond in an allotment that the district board requires. The appointed custodians of the District’s funds must follow this act.

Effective in April of 2009, Directors of Production and Conservation of the Oil and Gas Commission are no longer required to post a surety bond for the funds that they handle.

The Small Business Administration (SBA) has developed a Surety Bond Guarantee Program in order to provide smaller contracting firms with assistance in obtaining surety bonds. This program was designed to help small contractors with less experience have an opportunity to become bonded so that they may compete for jobs requiring surety bonds. The program will allow these smaller companies to prove their ability to meet job specifications, and perform well while making a profit. Strong performance with the help of this program can enable less-experienced contractors to build credibility, which could help them acquire surety bonds for future jobs based alone on their company