Archive for December, 2013

Oil Well Bonds Requirement is Enforced

Written by JoAnn Smith on December 30th, 2013. Posted in Bond Types, Commercial Bonds, Latest News, License and Permit Bonds, Reclamation, Mining and Removal Bonds, Surety Bond Blog, Texas, Utah

     oil well bond, oil well surety bond      
Oil Exploration in Utah
Oil exploration is a dirty and dangerous business. One of the ways that some of the risk is mitigated is by the requirement for oil companies to post an Oil Well Bond. These bonds ensure that when the well is no longer producing it will be capped off in a way that does not impact the surrounding area. While most companies can be counted on to fulfill their requirements regarding these surety bonds, sometimes this requirement slips past even the most careful watchdog. That was the case in Utah recently.

Injection Wells Sited

It turns out that Newfield Exploration out of Texas did not post the required surety bonds when they were operating injection wells within the jurisdiction of the Ute Indian Reservation. The bonds would ensure that when these wells were closed off they would not impact the drinking water on the reservation. Since the passage of the Safe Water Drinking Act, all wells are required to post a surety bond for this very reason.

EPA Filing Moves Forward

The Environmental Protection Agency (EPA) filed a complaint against the company when they failed to provide two of the five requirements of the act. This included an inability to provide proof of financial responsibility with either an Oil Well Surety Bond or other form of financial responsibility. Newfield has been fined $600,000 and has agreed to pay it. Although the complaint did not include any problems with spills, this penalty is a good reason to be sure that any company that is involved with the extraction industry researches thoroughly all of the requirements for the venture. This definitely includes any legislated requirements for surety bond coverage.

BuySurety Provides Bonding

If you are in a business that may have surety bond requirements, don’t take a chance. You may find yourself liable for fines because of the wrong kind or amount of surety bond coverage. BuySurety has been providing surety bonds to a wide variety of industries for decades. We have the background and expertise to provide the right kind of low cost coverage your business requires. We know the surety bond business thoroughly and can work with you to ensure you have the coverage you need at a price that suits your company budget.

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Alaska and Hawaii Auto Dealer Bonds

Written by JoAnn Smith on December 26th, 2013. Posted in Alaska, Bond Types, Commercial Bonds, Hawaii, License and Permit Bonds, Motor Vehicle Bonds, States, Surety Bond Blog

     Alaska auto dealer bonds, Hawaii auto dealer bonds
Alaska and Hawaii are part of the US too!
Alaska and Hawaii are two states with some very specific driving conditions. Outside of the obvious fact that neither of them are within the 48 states in the main part of the country, they also have some obstacles for auto dealers that go beyond the basic auto dealer bond requirements. For Alaska it may be because they have few roads and most of these in remote areas. Hawaii, with its tropical weather, faces other obstacles. Between the two, it isn’t surprising to find out that road conditions probably drive the popularity of four-wheel vehicles in both states. Whether it is getting stuck in the mud of a Hawaiian side road through a tropical forest or finding your vehicle is sliding on a sheet of frozen roadway in tundra territory, an ordinary car just won’t cut it here.  None the less, their requirements differ substantially when it comes to what surety bonds are a part of the licensing requirements for an auto dealership in Alaska or Hawaii.

Alaska Auto Dealer Bonds Requirements

Anyone who is considering starting up an auto dealership in Alaska will need to have their surety bond requirements fulfilled before submitting their paperwork to the DMV. In fact, for a new or used vehicle dealership the dealer or buyer’s agent will need to submit an original and notarized $50,000 auto dealer bond. If the dealership will only be selling motorcycles the bond requirement is only $25,000 but will still need to be original and notarized.

Requirements for Hawaii Auto Dealer Bonds

In Hawaii the auto dealer bond requirements are governed by what is sold in the vehicle dealership. It breaks down into new vehicles, used vehicles and whether the dealership is selling motorcycles or scooters. Just as we have seen in several other states, the auto dealer bond requirements for Hawaii also are broken down by how many vehicles are sold each year. New Motor Vehicle Sales-
  • $200,000 New Motor Vehicle Dealer Bond – When selling 10 or more units
  • $50,000 New Motor Vehicle Dealer Bond – When selling less than 10 units
Used Motor Vehicle Sales-
  • $100,000 Used Motor Vehicle Dealer Bond – When selling 60 or more units
  • $25,000 Used Motor Vehicle Dealer Bond – When selling less than 60 units
Motorcycle or Motor Scooter Sales-

Auto Dealer Bonds Delivered Fast and Easy

Whether you are planning to open an auto dealership, a motorcycle dealership or simply sell a dozen or so used vehicles in the next year, you will need to be sure your auto dealer bonds are in place first. That is when it is handy to have a surety bond provider that can walk you through the process and get you the best possible price. BuySurety has been providing auto dealer bonds to the automotive retail and wholesale industry since 1998. We know the business, keep track of the changes and can provide thorough customer support. Why take chances with your business? Get your auto dealer bonds fast and at a great price today with BuySurety.

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Calling in Performance Surety Bonds

Written by JoAnn Smith on December 24th, 2013. Posted in Bond Applications, Contract Bonds, Latest News, Maryland, New Jersey, Performance Bonds

     performance surety bonds, performance bond
Unfinished business means pulling surety bonds
Although there are signs everywhere of the economy picking up, we are still hearing of projects in various parts of the country where calling in the performance surety bond is being considered. Whether it is because of bad weather, slow sub-contractors or even in some instances because the primary contractor has gone bankrupt, we continue to read of performance or completion bonds being called in to complete a job. Obviously when it is possible to avoid this, any company does not want to see this happen and end up with a black mark on their ratings. But they do happen and they are a reminder of how important getting the right performance surety bond can be. Here are a few we have seen in just the last few weeks.

Maryland Town at Wits End

They have tried everything, but to no avail. When the town of Ocean City in Maryland hired a contractor to work on the reconstruction and completion of a beach-side comfort station, they expected it to be completed in time for the summer tourist season. That’s the tourist season for 2012. The contractor was delayed by bad weather but even then the delays seemed to continue month after month. The city has finally threatened to pull the performance bond on the project if the company doesn’t substantially complete the project by a set date. The contractor has been working hard to try and meet the deadline, though it is uncertain if he will.

New Jersey Townships Wants Completion

Although the majority of the roads are completed, many of the other amenities that were part of the package in a new subdivision in Bordentown Township are still missing. The company that was the original developer has gone bankrupt and that contract went into receivership which saw Amboy Bank taking over ownership. Angry and frustrated owners have gone to City Hall to demand that something be done to make the roads safe, finish building the last few houses that were bought but never completed and go down the “punch list” of final details in the new housing area. What is unclear is exactly who is responsible for completing these last items. The mayor has said there is a performance bond connected with the project and if he has to pull it to get these last items done he will. The homeowners association has said they have heard rumors that the bond has already been released to the developer, despite the unfinished nature of the project. They are looking for solutions and say that if the town can’t take care of it, they will take on the surety bond questions themselves. It remains to be seen if the performance bond is still a viable option.

Stay Legal with Performance Bonds from BuySurety

If you are getting ready to bid on an upcoming project that will require a performance bond, make sure that the company you buy from is a recognized and authorized surety bond provider. BuySurety has been providing performance bonds as well as a wide variety of other types of surety bonds to businesses and public officials since 1998. Why take chances with something as important as getting bonded? Come by our website and find out just how easy it so to get the right performance surety bond at the right price.

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Surety Bond Requirements – Vermont, New Hampshire and Maine Car Dealers

Written by JoAnn Smith on December 21st, 2013. Posted in Bond Types, Commercial Bonds, Latest News, Legislation, License and Permit Bonds, Maine, Motor Vehicle Bonds, New Hampshire, States, Surety Bond Blog, Vermont

     surety bond requirements
car dealer bond requirements are changing
As we take a look at the surety bond requirements for auto dealers in the extreme Northeast corner of the country, we see two different approaches to licensing. As we have seen in a few other states, Vermont and Maine look at licensing from the viewpoint of the size of the dealership. Meanwhile, New Hampshire has the simplest approach by simply requiring a surety bond for licensing regardless of what kind of auto dealership you happen to run. Here are the details:

Vermont Car Dealership Requirements

In Vermont, as we have seen before in several other states, the amount of bonding you are required to have in connection with your license depends on the number of cars you have on the lot. The only exception to this is when you are starting in the business as that first year will require the highest surety bond amount regardless of how many cars you have on the lot. You will note that these requirements only pertain to new car dealerships. Used car dealerships are not required to get bonded as part of their dealership license. Here is the breakdown on surety bond requirements for a new car dealership:
  • $34,000 surety bond – New Dealer Applicants
  • $20,000 surety bond – Dealers with 24 vehicles or less
  • $25,000 surety bond – Dealers with 25-100 vehicles
  • $30,000 surety bond – Dealers with 101 to 250 vehicles
  • $35,000 surety bond – Dealers with 251 vehicles or more

New Hampshire Auto Dealer Surety Bonds

Unlike its neighbor, New Hampshire has some very easy to understand rules when it come to licensing. If you are interested in opening an auto dealership in New Hampshire there is only one level of surety bonds that you need to post. In fact, it is the same amount, regardless of whether you are selling new or used vehicles. The surety bond amount for any auto dealer in New Hampshire is simply a $25,000 auto dealer surety bond that must be posted before completing your dealership license. Now, wasn’t that easy?

Maine Auto Dealers

When we get to that far corner of the country that is called Maine, we once again are dealing with multiple levels of surety bond requirements depending on the number of cars you will be selling. The difference between Maine requirements for surety bonds and Vermont is that in Maine there is no separate requirement for someone that is starting up a dealership and the bond is connected to the number of cars you sell regardless of how many cars are on your lot. The surety bond requirements are strictly based on the number of cars sold per year. Here is the nitty-gritty on Maine:
  • $5,000 surety bond – up to 50 cars sold
  • $10,000 surety bond – 51-100 cars sold
  • $15,000 surety bond – 101-150 cars sold
  • $20,000 surety bond – 151-200 cars sold
  • $25,000 surety bond – over 200 cars sold

Looking for Great Auto Dealer Surety Bonds?

Obviously anyone that needs an auto dealer bond as part of their licensing agreement wants to find a company that knows their way around surety bonds and also can give them the best deal. When it comes to helping you out with your surety bond requirements, our BuySurety customer service people can not only help you to define exactly what will work best for you, but find it for you at the best price. Don’t take chances with fly by night surety bond companies that may leave you high and dry. BuySurety has been doing surety bonds since 1998 and began as a brick and mortar company, which we still are. Contact us today or come by our site and find out just how easy getting the right surety bond and a great price can be.

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Auto Finance and Auto Dealers Facing New Surety Bond Laws

Written by JoAnn Smith on December 17th, 2013. Posted in California, Commercial Bonds, Latest News, Legislation, License and Permit Bonds, Motor Vehicle Bonds, Pennsylvania, States, Surety Bond Blog, Wisconsin

     surety bond laws
Has the cost of DMV surety bonds has gone up
Are you current on surety bond laws for your business? Do you know if your costs for DMV surety bonds will still cover you legally? Auto dealerships should be asking these questions as the requirement for surety bonds increase with the value of the cars they sell. There are several bills that are awaiting approval in state legislature that will impact auto dealerships and the financing arrangements that many auto dealers depend on for financial success. States as diverse as California, Pennsylvania and Wisconsin are considering legislative changes that will affect some or all auto dealerships in the coming year. Do you sell cars in any of these states? Do you know the latest laws regarding your DMV surety bonds?

Wisconsin Motor Vehicle Dealers

In the Wisconsin Assembly, surety bond laws in AB 262 are once again on the move as it passes the assembly and will probably be considered in the Senate in the coming year. The bill will require the minimum amount for an auto dealership license surety bond to increase from $25,000 to $50,000. Another change that this bill will see is the surety bond requirements for people that the Department of Transportation (DOT) contracts for title and registration processing services in Wisconsin. As the law currently stands these contractors must post a registration service surety bond for $10,000 if doing registration renewals or a $25,000 registration service surety bond if they will be handling title and original registration transactions. The bill would introduce changes so that when an agent is a subcontractor directly with a DOT contractor with at least 100 subcontract agents, then the contractor can provide $2,000 surety bonds for each subcontractor.

California RV Dealers

The California Assembly continues to consider AB 988, a bill that concerns the licensing and bonding of recreational off-highway dealers in California. Currently they are not required to be licensed and bonded. The bill would change this but although it has passed the Assembly and one committee in the Senate, it has been stalled in the Appropriations Committee. Hearings were cancelled and the bill may have to carry over to 2014.

Pennsylvania Motor Vehicle Sales Finance

A bill in the Pennsylvania House is in the process of rewriting current law regarding the surety bond amount required as part of licensing for motor vehicle sales finance companies. Currently the requirement is for a $5,000 MVD surety bond to be part of the licensing process. This bill would increase the surety bond amount to $10,000 for all sales finance companies. The bill has passed the House and is now with the Senate Appropriations Committee in the Senate awaiting approval.

Know Your Surety Bond Requirements

If you have a business where surety bonds are part of your licensing, bidding or any other element in the daily scope of the job, you need to know if your current surety bonds fulfill requirements. As you can see from our weekly updates, laws regarding surety bond requirements change regularly as the needs of the industry changes. If you are unsure if your bonding is up to date, don’t hesitate to contact us through our website to find out the latest requirements for your surety bonds. Be safe and keep your surety bond requirements up to date with BuySurety.

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