Archive for September, 2013

Surety Bonds Part of Kentucky Reclamation Guaranty Fund

Written by JoAnn Smith on September 14th, 2013. Posted in Kentucky, Latest News, Performance Bonds, Surety Bond Blog

In 2011 the US Office of Surface Mining issued a report stating that Kentucky, amongst other states, did not have adequate bonding to cover any reclamation that might be needed for the ongoing coal mining done in the state. In the event of any significant surety bond forfeitures, the current fund would not be sufficient to cover all costs. As a response to this report, the state of Kentucky adopted regulator amendments to increase individual surety bond amounts. The establishment of the Kentucky Reclamation Guarantee Fund (KRGF) was proposed and passed in 2013.

Kentucky Reclamation Guarantee Fund Established

This mandatory fund will cover the costs of reclaiming forfeited coal mining operations any time that the performance surety bond that was posted proves to be inadequate. This bond fund will then assume the costs of reclamation to allow the mining operation to be brought to program standards for mining reclamation. The surety bond requirement will apply to surface, underground and combination mining done anywhere within the state of Kentucky. This new Kentucky Reclamation Guaranty Fund will be phased in over the next few years and all coal mining operations within the state of Kentucky will be required to participate. The option to provide full-cost performance surety bonds in lieu of a business investing membership into the KRGF will also be provided.

Performance Bonds will be Allowed

Any member deciding to not participate in the KRGF with permits issued prior to July 1, 2013 is required to post full-cost surety bonds with the Kentucky Department of Natural Resources for all permits that the business holds. A member may post its intention to opt-out of the KRGF with a written notice. This intention, along with the required permits, must include the posting a full-cost performance surety bond no later than April 30, 2014. Penalties will be assessed for under-payment, late payment or non-payment of permit fees as well as surety bonds.

Find the Surety Bonds You Need Now

If you need a performance bond or any other kind of surety bond for your business, contact us today for fast service and fair prices. We have performance bonds, permit bonds and every kind of surety bond your business needs. Come by the BuySurety site to find just how easy it is to get bonded today.

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Surety Bond News: Changes Coming for Mortgage Professionals

Written by JoAnn Smith on September 9th, 2013. Posted in Commercial Bonds, Connecticut, Latest News, Legislation, License and Permit Bonds, Ohio, Pennsylvania, Retail and Professional Services Bonds, Surety Bond Blog

     surety bond news
Real estate appraisal will need new surety bonds this coming year
Even with the legislature fairly quiet lately, we have had some recent surety bond news to report on a number of key industries. One of these is the mortgage industry, which has seen quite a few changes in the last few years regarding requirements for licensing. This is, of course, bound to affect the amount and type of surety bond requirements for various roles in the mortgage industry. Here is the news of what those changes look like in three states: Pennsylvania, Connecticut and Ohio.

Pennsylvania Surety Bond News

A law was recently enacted in the Pennsylvania legislature that will change the manner in which a surety bond requirement is determined for mortgage professionals. In the past, the loan origination volume for real property was the basis for determining the surety bond amount required. That has been changed to reflect new thinking in the mortgage industry. The new requirement is that Mortgage Broker surety bond amounts will be based now in Pennsylvania on the loans for residential real estate or property handled by the mortgage professional.

Connecticut Mortgage Servers

The surety bond news from Connecticut is that mortgage servers will now be required to post a license bond. The bond of $10,000 must be sufficient to cover the main office as well as any branch offices the mortgage server may have. Direct action will be permitted on the surety bond and the penal sum cannot exceed the amount of the surety bond.

Ohio Surety Bond Changes

Mortgage Servicers will probably have to wait a little longer for any surety bond news regarding the changes to House Bill 80, stalled in committee since early February of 2013. The bill, which would require all mortgage servicers to post a surety bond of $25,000 for the main office and an additional surety bond of $10,000 for each branch office would protect borrowers against violations.

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Legislative Updates – Real Estate Appraisal License Bonds

Written by JoAnn Smith on September 6th, 2013. Posted in Commercial Bonds, Latest News, Legislation, License and Permit Bonds, Massachusetts, New Jersey, North Carolina, Surety Bond Blog

There are several states that have legislature in the process of being approved that will affect the real estate appraisal business. These are all connected with license and permit bonds that are to be required as part of the licensing of real estate appraisal management companies.

North Carolina Surety Bond Bills

In North Carolina a bill has been passed that will require such companies to post a $25,000 license and permit bond. This surety bond will ensure that the company complies with the laws and regulations regarding real estate appraisal in North Carolina. It will also be there to ensure the payment of its appraisers. Although the bill will allow direct actions to be taken on the bond itself, it will limit these actions to the amount of the penalty connected with the bond. A company can cancel a bond with a written 90 days notice but must continue to be bonded for two additional years if the company should end its operations in North Carolina. This bill has been passed and as of July 30th was awaiting the Governor’s signature to put the bill into law.

Massachusetts Surety Bonds

As of our latest reading (July 30th 2013), there is a bill still pending with the Massachusetts legislative body regarding real estate appraisal management licensing. This new law would require these companies to be licensed and bonded to do business in the state of Massachusetts. As a protection regarding claimants against the licensed company, a $20,000 bond will be required. As in the North Carolina bill, these license and permit bonds will allow direct action on the bond but that action will be limited by the stated principle amount of the bond.

New Jersey License and Permit Bonds

A committee is currently meeting to consider a similar bond requirement in the state of New Jersey. If passed through legislation, this bill would require that all real estate appraisal management companies doing business in New Jersey be both licensed and post a surety bond. The bond is for $25,000 as part of the company registration with the state. If your state requires your real estate appraisal management company to take out a surety bond, know that BuySurety can provide the correct license and permit bond quickly and easily. We welcome your questions and want you to know that even companies with challenging credit can be bonded through BuySurety. Find out the facts – talk to our helpful agents today.

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Landscape Contractors – Do You Need a License Bond in Your State?

Written by JoAnn Smith on September 5th, 2013. Posted in California, Colorado, License and Permit Bonds, Oregon

As the housing market begins to recover, landscaping contractors are getting back into business again as well. If you have been quiet for the last few years, you might want to check and be sure that your license is still valid and your surety license bond is up to date. For anyone who is considering getting into the landscape construction and contracting business, you will need to first familiarize yourself with what the requirements are for your state.  Most states do require a contractor’s license and the accompanying surety license bond for anyone that is contracting out for landscaping work. The requirements for the license and surety bond may differ from state to state, so it is a good idea to check with your state government if you are considering doing landscape contracting work. Here are a few states that do require a license bond along with the license to do this kind of work Oregon – Since 1972 the State of Oregon has required anyone who does contracting landscape work to not only meet experience and educational requirements, they must also pass an exam for competency.  Once they have passed this exam they must then provide proof of insurance and post a surety bond. Two types of licenses are needed to be a landscape contractor in Oregon, an individual license and a business license that must also have a license bond posted for the following amounts:
  • $3,000 – For projects that are $10,000 or less
  • $10,000 –  For projects that are $10-25,000
  • $15,000 – For businesses on  probation and if projects are more than $25,000
California –The state of California requires a license for any contractual landscaping work, despite the number of unlicensed landscapers you will probably see in any given day. Although there are schools for landscape licensing, they are not required. Four years of prior experience along with a $20,000 surety license bond is a good beginning for anyone looking to become a licensed landscape business in the state of California. For more details, be sure to check with the California License Board. Colorado – Although a license is required in the state of Colorado to do landscape construction, the type of license and the regulation of it is a city by city decision. Surety bond requirements also change from county to county or city to city, depending on the area. You can search out the requirements for the particular city in Colorado where you will be doing landscaping by using this licensing site. Not sure if your state requires a surety bond as part of their landscape contractor’s license? Lucky for you we know the answer. Just come by the site or give us a call to find out if your state requires a landscaping license bond for your business today. At BuySurety we have the surety bonds you need to keep your business secure.

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