Uniform Trust Code Performance Bonds in Kentucky and Maryland

Written by JoAnn Smith on April 7th, 2014. Posted in Bond Applications, Bond Types, Contract Bonds, Kentucky, Latest News, Legislation, Maryland, Performance Bonds, Surety Bond Blog

     trustee performance bonds
Performance bonds help trustees
Performance bonds will be playing a new role when it comes to trustees in Kentucky and Maryland very soon. There are at present legislative bills before both Kentucky and Maryland’s Senate that would change the current requirements regarding trust laws. Both states are considering the possibility of adapting the Uniform Trust Code used in many other states. If these bills pass, it will affect the type of surety that is required of a trustee. The basics as outlined by the Uniform Trust Code would be the same in both states. But because of historical differences in their approach to the role of the trustee, each House is considering some changes. These would ensure that the requirements of a trustee will remain within the regulations of either Maryland or Kentucky.

Maryland Trustee Bill

In the Maryland legislature, House Bill 83 passed through the House with very little opposition and moved into the Senate on March 18, 2014. The bill, if passed, would see the adoption of the Uniform Trust Code that requires trustees to post a performance bond to secure the performance of their duties. However, this will only be done if the court requires it or if the terms of the trust require it. The court would authorize the requirement and determine the amount of the performance bond to be posted. The court would also have the authority to either modify the requirements of the bond or to terminate it as they see fit. Should the trustee resign, their liabilities for the trust or the bond will not be affected by the act of resignation.

Kentucky Performance Bond Requirements

Although there are currently trust laws in force in Kentucky that do not require a trustee to post a performance bond as part of their legal performance of their duties, that may change with the passage of House Bill 119. The bill was introduced in January of 2014 and passed through three readings in the House before moving forward to the Senate. As of April 2, 2014 the bill was awaiting approval and changes from the Senate Appropriations and Revenue Commission. If passed, the bill will adopt the conditions of the Uniform Trust Code. This will allow the court to determine if a performance bond is required by a trustee and to specify the amount of the bond and its liabilities as well. The bill also allows that if a regulated financial institution already qualified to do trust business in the Commonwealth of Kentucky is required within the terms of the trust to be bonded, the court can release them from this obligation.

Trustees and Performance Bonds

As it is easy to see, being named a trustee can often include the requirement to be bonded as part of the duties of the trustee. Although this requirement will change from state to state, the requirements for a performance bond are the same regardless of the situation that calls for it. If you should find yourself in need of a performance bond as part of your requirement as a trustee, contact BuySurety today for a fast easy quote on a performance bond. You will find our knowledgeable and friendly customer service are easy to work with and can help you get the kind of surety bond you need. BuySurety has been serving the needs of the American public with a wide variety of surety bonds for over 20 years. Let BuySurety take care of your performance bonds, or any other kind of surety bond, today.

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Fidelity Bonds for Maryland Common Ownership Community Managers

Written by JoAnn Smith on February 25th, 2014. Posted in Bond Types, Latest News, License and Permit Bonds, Maryland, Surety Bond Blog

     common ownership fidelity bonds      
Common ownership fidelity bonds make happy homes
As the definition of a family unit changes and the price of a single family home skyrockets out of reach of many Americans, common ownership communities are becoming more accepted. While some forms of community ownership are widespread, such as with Home Owner Associations or HOAs, others such as co-operative housing or residential condo associations are just getting traction. Governing these often fractious groups can be a difficult and thankless job.
 
It isn’t surprising to find out that the governing bodies for large communities are being taken on by professional organizations. In many states there has been a movement to create an office that can help self-governed common ownership communities with information and assistance, as well as to help regulate professional organizations that take these tasks on. In Maryland, up until now, this has been handled by each individual county.

Moving Responsibility to the State of Maryland

With the current consideration of Maryland House Bill 10, the state of Maryland is drafting a bill that moves responsibility from individual counties to the state for regulation of common ownership community managers. This will allow the state of Maryland to create a State Board of Common Ownership Community Managers that would be governed by the Maryland Department of Labor, Licensing and Regulation. With the creation of this state board, anyone who wishes to offer their services to a common ownership community as a manager would need to be licensed and bonded by the board.

Fidelity Bond to Protect Communities

If passed, House Bill 10 would require anyone who offers managerial services of this kind to be bonded against theft. This is because the position would include handling organization fees and the reserve for the common ownership community. The fidelity bond would be either $2 million or the highest aggregate amount of the operating and reserve balances for all of the common ownership communities under contract in the prior three months, whichever is less. The bond would cover the licensee, the manager and any employees or contractors that worked for the managerial company.

Finding the Right Fidelity Bond

With more states looking at the emergence of common housing, management companies to help these organizations will probably continue to spring into existence. This also means that many states will begin to look at ways to regulate these common housing management companies to ensure that the co-owners money is handled properly. This is where a fidelity bond as a requirement for licensing will probably come into play in more states. If you are considering a common housing situation, you might want to see if the management for it has a fidelity bond in place. For anyone who wants to move into the common housing management field, making sure you are bondable for a fidelity bond would be a smart first step. At BuySurety we have been providing fidelity bonds since 1998 to a variety of organizations in a wide number of states. Why not talk to our knowledgeable and friendly customer service representatives today and find out just how easy it is to get bonded with BuySurety.

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Surety Bond Companies Save the Day for Municipal Projects in California, Maine and Maryland

Written by JoAnn Smith on January 31st, 2014. Posted in California, Commercial Bonds, Latest News, Maine, Maryland, Performance Bonds, States, Surety Bond Blog

     surety bond companies
Cities need surety bond companies to ensure projects are completed.
In three separate projects involving municipal directed construction, surety bond companies have had to step into the breach to ensure that the projects would be completed. In the Maryland construction project a second contractor agreed to take over a delayed high-school construction project when the original contractor defaulted on their surety bond. The same type of delay happened with a school construction project in Maine except that in this project the surety bond company had to step in and find a second contractor to complete the project. Meanwhile, a community center under construction in California was halted after the city removed the original contractor for several delays. The surety bond company will appoint a new contractor for the city. Municipal Projects Need Surety Bond Companies All three of these projects are a clear sign that although construction on many municipal projects has resumed after quite a few years of dismal finances, many smaller construction companies have proven to not be up to the challenge. While many municipalities want to support smaller local businesses, the need for these companies to supply performance surety bonds to protect city interests is stronger than ever. Surety bond companies can help many small and mid-size companies make the leap to the next big project by providing assurance that they can handle the financial complexities of these projects.

Getting Bonded Important for Growth

If you are a small or mid-size business looking to recover from the recent market crash by attracting new business with local government, make sure your house is in financial order. If you don’t already have the surety bonds in place to allow you to bid on these important new projects, you can find out how to get bonded quickly and easily. Contact our offices through BuySurety and get your company bonded today. Qualify for more lucrative government projects by being pre-bonded by surety bond companies that can work with you to make your business more strategic in today’s recovering marketplace.

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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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West Virginia, Maryland and Washington D.C. Auto Dealer Surety Bonds

Written by JoAnn Smith on December 4th, 2013. Posted in Commercial Bonds, District of Columbia, Legislation, License and Permit Bonds, Maryland, Motor Vehicle Bonds, States, Surety Bond Blog, West Virginia

     auto dealer bonds
Looking for auto dealer bonds?
Auto dealer bonds in states such as West Virginia and Maryland as well as their neighbor the District of Columbia are all required as part of the licensing for an auto dealership. The exception in this area is Delaware, which is one of only three states in the entire country which do not require an auto dealer bond as part of the licensing process for an auto dealership. Ohio and Vermont require specific surety bonds, but not the type of auto dealer bond we are discussing here. But like most states, there are specific circumstances in each state that govern the requirements for an auto dealer bond. Here are the details for West Virginia, Maryland and our nation’s capital, Washington D.C.

West Virginia Auto Dealership Requirements

Luckily for West Virginia the requirements are very simple. If you want to open or extend a dealership into the Mountain State of Virginia you only need to post a $25,000 Motor Vehicle Dealer Bond. It doesn’t matter how many trucks, cars, motorcycles or any other kind of vehicle you sell, the bond amount is the same. It doesn’t even matter if it is used vehicles or new ones. The bond you need to post is still the same in West Virginia. Luckily it is just that easy to do. Especially if you have someone like BuySurety to help you out!

Maryland Car Dealership Bonds

If you want to open an auto dealership in Maryland, you will need to pay close attention to the type of vehicle and how many you want to sell. That is because the regulations regarding the posting of car dealer bonds in Maryland are pretty detailed. Here is the lowdown, straight from the Maryland DMV website:

Type of Business

Number of Vehicles Sold or Transferred

Bond Amount Required

New Vehicle Dealer License 1-500 501-1,000 1,001-2,500 Over 2,500 $50,000 $75,000 $100,000 $300,000
Used Vehicle Dealer License 1-250 251-500 501-1,000 1,001-2,500 Over 2,500 $15,000 $25,000 $35,000 $50,000 $150,000
Wholesale Vehicle Dealer License 1-250 251-500 501-1,000 1,001-2,500 Over 2,500 $15,000 $25,000 $35,000 $50,000 $150,000
Motorcycle Dealer License (new vehicles) 1-500 501-1,000 1,001-2,500 Over 2,500 $50,000 $75,000 $100,000 $300,000
Motorcycle Dealer License (used vehicles) 1-250 251-500 501-1,000 1,001-2,500 Over 2,500 $15,000 $25,000 $35,000 $50,000 $150,000
Emergency Vehicle Dealer (new vehicles) 1-500 501-1,000 1,001-2,500 Over 2,500 $50,000 $75,000 $100,000 $300,000
Emergency Vehicle Dealer (used vehicles) 1-250 251-500 501-1,000 1,001-2,500 Over 2,500 $15,000 $25,000 $35,000 $50,000 $150,000
 

District of Columbia Auto Dealer Bonds

Luckily, for anyone considering opening up an auto dealership in the District of Columbia, it is not anywhere near as complicated as in Maryland. There are, however, several levels of surety bonds, depending on whether your dealership also offers the ability to repair vehicles as well as sell them. They all must expire on October 31st each year. Here are the details for this:
  • New and Used Vehicles                                                        $25,000 Vehicle Dealer Bond
  • Includes Auto Repair (5 or less employees)                  $2,000 Auto Repair Dealer Bond
  • Includes Auto Repair (more than 5 employees)         $5,000 Auto Repair Dealer Bond
If you are not sure if your proposed auto dealership in the District of Columbia qualifies as having an auto repair on premises, be sure to check with the DC DMV first. Got question? We have the answers! Come by our website and see how easy it is to get that auto dealer bond you need today.

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