Archive for August, 2013

License Bond for Colleges Changing In Kentucky

Written by JoAnn Smith on August 16th, 2013. Posted in Kentucky, Latest News, License and Permit Bonds, Surety Bond Blog

     Kentucky, license bonds
New surety bond rules for Kentucky colleges are coming.
For anyone planning to run a college in Kentucky, checking to see how much of a license bond they will need might be a smart move. That’s because the requirements for out-of-state colleges that run a post-secondary educational institution in Kentucky will have their license surety bond requirements change in the coming year. The Council on Post Secondary Education has announced a hearing regarding these proposed changes.

The Current Requirements

The changes in the license bond requirements include both in-state and out-of-state institutions. Out-of-state colleges are defined by the Council as those institutions that are chartered, organized or have their principle location outside of Kentucky. At this time, surety bond amounts for those colleges are determined in relationship to the unearned tuition held by the college. The license bond currently needs to either equal to or in excess of that amount. In-state colleges currently are required to hold a license bond in the form of a surety or letter of credit that is equal to or more than the greatest total amount held by the college during the fiscal year of unearned tuition. This can also be in the form of a cash reserve.

The Proposed Changes for License Bond Requirements

For out-of-state institutions the change would be reflected in a minimum amount of $10,000 posted for the license bond. If the out-of-state institution has more than one location in the state, each individual location will be required to provide its own individual license and license bond. Any on-line instruction will also be constituted as a separate location and need its own license and license bonding. The exceptions to this are
  • if less than 1% of the faculty resides in Kentucky
  • if a faculty member residing in Kentucky is the sole reason for the license and teaches online
In-state institutions would also have some changes. These would be according to the length of time that the institution has had continuous licensing with the Council:
  • Five to ten years – The amount of the surety bond, letter of credit or cash reserve must be 10% of the annual total net tuition and fees collected for the most recently completed fiscal year.
  • Ten or more years – The amount of the surety bond, letter of credit or cash reserve must be 5% of the annual total net tuition and fees collected for the most recently completed fiscal year.
When calculating the net tuitions and fees, colleges subtract scholarships and fellowships from the total tuition and fees amounts. If a cash reserve is to be used, that reserve must be unrestricted so that it is available to cover payments to students for unearned tuitions at any time.

Applying for Licenses and the License Bond

When an institution applies for the license within these new regulations, they will then have an on-site inspection to verify that they qualify. If they are not deemed to have qualified they will have 60 days to resubmit a new application and fees including license bond fees. They may then receive a conditional license for no more than two years while they correct the deficiencies named in the on-site inspection. In addition, any change of name or address requires a 90 day notice with a supplementary notice for change of application. For out-of-state colleges, these notices will be required for changes in diploma or degree programs or the offering of additional certifications at the instructional site. These notices are to be considered by the Council within 90 days of notice being given and the license will then be:
  • Approved
  • Denied or
  • Suspended
If none of these options are taken, then a notice of deficiencies will be sent for correction. The Council can choose to issue a conditional license for no more than two years. If the corrections have not been performed to the satisfaction of the Council within those two years, the license will be revoked. If the conditions are completed, then the President of the Council will amend the current license upon all financial requirements such as license bond renewals being completed. Not sure if your state requires a license bond for private post-secondary schools? Talk to our knowledgeable customer service at BuySurety.com and find out your answer fast. We can help you with every kind of surety bond from a private school bond to a license and permit bond. Contact us today to get your surety bond now.  

Tags: , , ,


Comments Off on License Bond for Colleges Changing In Kentucky

Florida Used Car Dealer Bonds – Getting Started

Written by JoAnn Smith on August 10th, 2013. Posted in Commercial Bonds, Florida, License and Permit Bonds, Surety Bond Blog

     Used car dealer bonds
Do you have your used car dealer bonds?
Getting used car dealer bonds can be a vital step towards getting a Florida used car dealership up and running. Florida’s economy is finally recovering and that makes it a great time to get into business. If like many entrepreneurs you are starting out in a brand new business, finding out what you need to do to get your company not only started but legally protected is an important part of the entire process. Having the information required regarding licenses and registration can make this process not only easier but in the long run could save you money.

Florida Used Car Dealerships

So where do you get started? The best place to begin is with the Florida Department of Highway Safety and Motor Vehicles. They will make it easy for you to find all the paperwork you will need online. This link will send you directly to the licensing page and the forms and information you need. Keep in mind you will need to fill out different information depending on the type of cars you will be selling since Florida regulations differ according to the type of car sold. Used car dealerships will need a different license and used car dealer bonds are different from those used for selling new cars in Florida. Go through each step and keep in mind that there are set costs affiliated with the different steps in the procedure to have your used car dealership license in place. Basic requirements include:
  • Background check
  • Fingerprinting
  • Official place of business
  • Compliance with the Bureau of Motor Vehicles inspection at business
  • Insurance
  • Used Car Dealer Bonds
  • Renewals are every April 30th

Why a Used Car Dealer Bond?

If you have never had a business that requires some type of surety bond before you may not be familiar with them. Anytime you enter into a business that involves some risk there is often a requirement that the business take out a surety bond to cover that risk. In this case, the surety bond reassures your clients that you are meeting all of the requirements of the state of Florida regarding selling used cars. It protects them from unscrupulous sellers and that is why it is required for all businesses selling used cars in the state of Florida. Since you are simply paying the premium on the surety bond, you only pay a fraction of the value of the bond upfront. The price for this premium is based on your credit score, so if you already have a great score you can get your surety bond at a better price. But even if your credit score isn’t anything to write home about, we can still sell you a great surety bond at a very reasonable price.

Getting Surety Bonds Online is Easy

Getting a used car surety bond is actually quite simple. You can go online and get a free price quote and probably have the type of surety bond you will need within 24 hours. If you are a member of a trade association such as an Independent Auto Dealers group we can also offer you a discount on the price of your used car dealer bond. Just call us to ask, it’s that easy. Come by the BuySurety site and find out just how easy it is to qualify and receive your used car dealer bond whether you plan to sell used cars in Florida, California or anywhere else in the US. We can help you find the right surety bond for your business today fast and at a price you will be happy with.

Tags: , , ,


Comments Off on Florida Used Car Dealer Bonds – Getting Started

How Do I Get Bonded – Midsize Contractors Best Practices

Written by JoAnn Smith on August 1st, 2013. Posted in Contract Bonds, Surety Bond Blog

     how do I get bonded
Getting bonded is an important first step
If you are a mid-sized construction contractor wondering how do I get bonded – it might be a good idea to check out our suggestions for the best practices to ensure you qualify. The construction industry as a whole is just beginning to emerge from some pretty tough times, as you more than likely already know. One of the side effects is that contractors who appeared solid have run into financial crunches no one expected, leaving surety bond companies often holding the bag. While there is no shortage of bonding capacity, it has resulted in the requirements for surety bonds becoming more stringent. So you may be thinking, well how do I get bonded if that is true? But just because the rules have tightened up a bit doesn’t mean you can’t qualify. All you really need to do is make yourself a better risk for a surety bond company. Usually this can be done by simply doing the homework first. Here are six steps that if followed through can answer the question how do I get bonded and stay qualified:
  1. Produce the paperwork – You need to have prepared financial records in detail that show your current projects as well as your past ones. These need to include budgets, staff, any litigation history including current ones, and all of your insurance policies.
  2.  Be Liquid – Your liquidity should reflect your current workload.
  3. Show Compatibility – You will need to be able to prove that the project you want the bonding for is compatible with your experience in the field and your company’s core competencies.
  4. Provide Strategy – Can you show how you are planning to fulfill the project’s contracted completion terms?
  5. Set Subcontractor Standards – You will need to prequalify all your subcontractors and show it.
  6. Maintain Communication – A big part of the contractor’s job is sustaining good communication between your surety bond producer, the project financer and the internal general counsel. Show examples of how you have maintained this in other projects as a good faith statement.
When you have the right information on how to qualify for your surety bond, you may find it is a simple process. If your company is getting ready for its next project and are looking for a reliable surety bond provider, BuySurety can provide anything from bid bonds to performance bonds and more. When the question is “How Do I Get Bonded?” the answer is at BuySurety.

Tags: , ,


Comments Off on How Do I Get Bonded – Midsize Contractors Best Practices