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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Ohio Exotic Animal Owners Ask for Relief from Surety Bond Requirements

Written by JoAnn Smith on April 2nd, 2014. Posted in Bond Applications, Latest News, License and Permit Bonds, Ohio, Surety Bond Blog

     surety bonds for exotic animals      
Surety bonds are requited to keep exotic animals like tigers
Last year we reported on changes in Ohio’s laws that would require owners of exotic pets to register the animals with the state. It had become a cause for exotic pet owners in the Ohio region that they ultimately lost. With the passage of the new requirements, registration included a surety bond requirement meant to cover costs should the animals cause destruction.
 
The law was the result of a bill that was introduced after a local Ohio resident deliberately released his own collection of exotic animals while in a distraught state. The bill passed through legislature quickly and the new requirements went into effect January 1st, 2014.

Animal Owners Dispute Surety Bond Requirements

A group of exotic animal owners took the state to court and the case was brought before the 6th U.S. Circuit Court of Appeals in Cincinnati. The three-judge panel decided against the group and now the owners are asking a federal court to appeal the decision. The owners are claiming that this new law and the surety bond requirements that are part of the licensing are an infringement on their constitutional rights.
 
The Circuit Court of Appeals had ruled that the new regulations for exotic animal owners were not an infringement of their free speech and free association rights as the owners had claimed. The court noted that the requirements were in place in order to address concerns for animal welfare as well as to protect public health and safety. The ownership of dangerous wild animals, the court stated, was a threat to public safety and therefore the new regulations were necessary. The new regulations not only have surety bond requirements but also require exotic animal owners to pass a background check, pay the fees and prove that they can care for the animals properly.

Surety Bonds Ensure Animal Owners

While the owners of these exotic animals may feel that their rights are being trampled on, most owners of large predatory animals are required to show their ability to care and control the animals. They are often asked to post a surety bond or other sureties that will prove their ability take financial responsibility for the animals. Getting bonded through a company such as BuySurety is a fast and easy solution to any requirement to guarantee your financial responsibility. Got a tiger in your backyard? You might want to come by the BuySurety site and get your surety bond today.

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Performance Bonds Keep Big Projects Moving Forward

Written by JoAnn Smith on March 13th, 2014. Posted in Bond Applications, Bond Types, Contract Bonds, Michigan, Performance Bonds, Surety Bond Blog

     performance bonds
Performance bonds ensure work at the Panama Canal
As the country continues to lurch towards recovery, we are beginning to see more signs that construction, especially when it comes to the bigger projects, may be a part of that economic recovery. The announcement of the posting of performance bonds for two major construction projects point to the growing strength of the country in the construction sector. When we build, especially when we build major projects such as the Panama Canal and the Williamsett Bridge in Massachusetts, you can be assured that the economic growth of the country can’t be far behind.

Performance Bonds Puts Panama Canal Back on Track

The redesigning of the Panama Canal is a project that has been fraught with work stoppages, miscalculations and more since it began. However, the recent halt of work by the construction consortium has for two months held the entire project hostage. With a total cost of $5.2 billion, this is probably one of the biggest construction projects for this century. The good news is that the consortium will be allowed to access a $400 million performance bond in order to get the project up and running and hopefully back on track. With a two month stoppage the project is behind schedule and looking to make up for lost time once the money is placed in an escrow account. This account will be used to pay for supplies and sub-contractors, and hopefully allow the third set of locks to be completed by mid-December, a new target date.

Bridge Will Link Two Cities

In Michigan, if you want to go from Chicopee to Holyoke it may be a long trip for the next while. That is because the bridge that connected these two Michigan towns was closed in August of 2011 because of structural problems. Plans were in place to replace the bridge, and work continued on the new bridge until September 2013 when the $21 million state-run construction project was halted because the main contractor went bankrupt. This brought some serious problems as companies that depended on the bridge being completed on time were in danger of going out of business themselves. The good news is that the Department of Transportation has come to an agreement with the company holding the performance bond on the project. This company has worked with the DOT to name seven contractors who will bid for the completion project and get to work as soon as the weather allows. That will bring a sigh of relief to many businesses on either side of the river.

Performance Bonds Save Projects

As anyone can see, both of these projects would have been impossible to complete without the performance bonds they had in place before the job even began. While everyone in the construction industry is familiar with performance bonds and their importance, they are a big part of many industries outside of construction as well. Don’t let your business get left out in the cold when it comes to getting the projects you need to succeed. Come by our website or talk to one of BuySurety’s knowledgeable customer service staff and find out just how fast and easy it is for your company to be bonded for that next project. At BuySurety we have been providing performance bonds and a wide assortment of other types of surety bonds to companies large and small for decades. Get your performance bonds with BuySurety today and be ready for that next project.

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Ohio and Pennsylvania Debt Settlement Providers Need Surety Bonds

Written by JoAnn Smith on March 11th, 2014. Posted in Bond Applications, Latest News, Legislation, License and Permit Bonds, Ohio, Pennsylvania, Surety Bond Blog

     debt settlement surety bonds      
debt settlement companies need surety bonds
 
photo credit: Alan Cleaver via photopin cc
In a move to have greater control over the debt settlement industry, legislature in both Ohio and Pennsylvania are considering passing bills that would require companies to be bonded as part of their licensing agreement.
 
For both instances the bills would introduce the requirement that all debt settlement companies in each respective state will now need to be registered and licensed, as well as being required to post a surety bond. Up until this time this was not a requirement for this industry in either Ohio or Pennsylvania.

New Debt Settlement Surety Bond Requirements

In Ohio the possibilities for this bill passing looks good. Ohio House Bill 173 was first introduced into the House in May 2013 and passed through three committees before it was introduced to the Senate. The bill currently is sitting with the Senate’s Insurance & Financial Institutions Committee where it looks favorable for its passage. The bill will require a license surety bond to be posted at the time of licensing. With a total of 14 representatives of the House acting as sponsors for this bill it looks likely to see passage before the end of the year.
 
By contrast, Pennsylvania Senate Bill 622 began in the Senate in March of 2013 before passing through the Senate’s Banking and Insurance Committee and Appropriations. It passed on to the House in December of 2013 and is currently being considered in the Commerce Committee of the House. When passed, this bill will require anyone who wants to do business as a debt settlement company in Pennsylvania to be registered with the state and post a license and permit bond. With the backing of 14 highly placed senators for this bill it also looks likely to pass before the end of the year. Both of these bills are the result of a perceived need for greater regulation in the debt settlement industry.

Finding Surety Bonds Fast and Easy

Of course, these two bills are a great example of how an industry can suddenly find itself needing to qualify for surety bonds. Many states already require anyone offering debt settlement to be covered for liability through a surety bond. If you work in the debt settlement industry, or any industry where having a surety bond is part of the licensing procedure, make sure you are covered with a surety bond from BuySurety. We can make getting bonded a fast and easy process. Be sure to contact us today to find out just how quickly we can qualify your business for any kind of surety bond coverage.

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Are Pre-Buy Service Surety Bonds in New Hampshire’s Future?

Written by JoAnn Smith on January 15th, 2014. Posted in Bond Applications, Bond Types, Commercial Bonds, Latest News, New Hampshire, Retail and Professional Services Bonds

pre-buy service surety bond
Why heating oil suppliers need a pre-buy service surety bond
This winter’s Arctic Blast has done more than simply chill the great outdoors. In New Hampshire where many consumers found themselves delayed or sometimes required to accept shortages on the delivery of pre-paid heating oil, it chilled their relationship with the heating oil supplier.
 
In response, the state’s Attorney General’s Office is considering changing requirements for pre-paid services because of a backlash of complaints after the shortage. The changes will probably include a requirement for pre-buy service surety bonds for all businesses that offer that option.
 

Pre-Buy Service Surety Bonds a Solution

The possible changes became obvious when Assistant Attorney General James Boffetti stated in a news conference that the current situation of pre-bought services that left consumers out in the cold was ″grossly inadequate″ and did not meet the consumer’s needs. In order to ensure that customers who pre-pay for their goods and services, such as heating oil, are met a pre-buy service surety bond could be required in the future.

Arctic Weather Creates Emergency

Over 40 complaints were received by the Attorney General’s office for delayed or shorted delivery of heating oil during the recent storm. Some consumers were left without any heating oil in record low temperatures. A combination of holidays leaving companies short of drivers, poor road conditions making deliveries difficult or slow and an electrical fault at one of the major providers were sited as contributing to the problem.

Service Businesses Need Surety Bonds

In reality, any business that offers goods and services in a pre-buy package should be considering a pre-buy service surety bond as a form of insurance for their business. As this winter storm illustrates, anything can happen unexpectedly that interferes with the ability of a company to deliver as planned. If your business provides goods or services through a contract that includes a pre-payment and you need a surety bond as part of your business, find it fast with BuySurety. We have been providing businesses large and small with the surety bonds they need to be successful and secure since 1998. Find out how easy it is to find and buy the surety bond you need to keep your company secure at BuySurety today.  

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