Do Florida Charter Schools Face School Bond Requirements?

Written by JoAnn Smith on January 30th, 2015. Posted in Indemnity Bonds

     school bonds      
Will Florida charter schools soon need school bonds too?
Florida charter schools have been coming under fire for a number of reasons lately, not the least of them financial. With charter schools closing down and leaving taxpayers holding the bag on financial losses, questions have arisen if they should be required to put up a school bond as part of the requirements for opening a charter school in Florida.

This may sound drastic to many but the need is real as charter school find themselves in financial circumstances that force them to close with alarming regularity in Florida. Currently, there are no legal requirements that surety bonds, in the form of a school bond, are required in Florida for anyone opening a charter school in the state. While this may be a requirement in many other states for this very reason, in Florida the need is just now being considered to protect taxpayers.

School Bond Requirements

Florida considering requiring a school bond for a non-government entity to open a charter school is not a new idea. In many states, including Oklahoma and Maine, surety school bonds are required. These states see surety bonds as a way to protect taxpayers from paying double for the cost of a charter school.

It is true that the concept of charter schools is to create alternative education under the same umbrella as state-funded schools. But not all states have the same school bond requirements to protect their taxpayers from abuse. In Palm Beach County alone five schools closed that cost the local taxpayers $420,000 according to School Board member Chuck Shaw. If all charter schools are required to carry school bonds as a surety against financial failure, this kind of loss may be mitigated.

Get Bonded at BuySurety

For anyone who has never had to go through the process of getting bonded, finding the right surety bond can be bewildering. Having the knowledgeable customer service agents here at BuySurety will certainly make the process easier. For any kind of surety need, whether it is school bonds for a Florida charter school or bid bonds for that next municipal construction project, we can help. Come by the BuySurety site today and find out just how easy it is to get bonded for school bonds, bid bonds or any kind of surety bond at BuySurety.

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New Surety Bond Requirements for Connecticut Mortgage Servicers

Written by JoAnn Smith on July 21st, 2014. Posted in Bond Types, Connecticut, Indemnity Bonds, Latest News, License and Permit Bonds, Performance Bonds, Surety Bond Blog

     new surety bond requirements.      
Connecticut mortgage service companies have new surety bond requirements
Connecticut mortgage servicing companies will be seeing new surety bond requirements starting in the new year with the passage of Connecticut House Bill 5353. The bill, which moved quickly through the House for passage will amongst several other things redefine anyone acting as a mortgage service company to now be a mortgage service provider that is required to be licensed from the banking commissioner. In addition, each main branch must now have its own license, as well as each individual branch office where the mortgage servicer does business. New surety bond requirements will be part of these new licensing requirements.

New Surety Bond Requirements

Along with the new requirements for all locations where a mortgage service provider does business to be licensed separately, each location will also need to post a surety bond of $100,000. In addition, the bank commissioner may choose to decide if the financial standing of the mortgage servicer will necessitate additional performance surety bond requirements beyond the $100,000 bond. The performance bond will ensure that the mortgage servicer performs their business in an honest manner and has trustworthy accounting practices. It will also ensure that the business conforms to all applicable laws pertaining to the business of mortgage servicing. While the licensing changes will go into effect on January 1, 2015, the changes in the requirements for surety bonds will be law as of November 1, 2014. These new surety bond requirements are in addition to the already mandatory fidelity bonds and errors and omissions bonds that all financial service businesses including mortgage service companies are required to have.

Get Bonded for Your Business Quickly

As you can see, changes in a business requirement can move quickly. In this case the Connecticut bill was introduced in February of 2014 and became law by June 3rd. This is a good example of why it is so important for every business to be up to date on the surety bond regulations for their industry. When requirements change quickly you want to be ready, and BuySurety can get you there. We know all the latest legislative changes, can put together the surety bond requirements you need quickly and get you bonded to stay legal fast. Bonding businesses since 1989, BuySurety can be there for you when you need to fulfill that new surety bond requirement. Visit our website or call our customer service reps and find out just how easy it is to keep your business up to date with all the state and federal surety bond requirements.

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Are Oil Well Surety Bonds Enough for Wyoming’s Orphan Wells

Written by JoAnn Smith on July 3rd, 2014. Posted in Indemnity Bonds, Latest News, License and Permit Bonds, Performance Bonds, States, Surety Bond Blog, Wyoming

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Orphaned oil wells like this one in Wyoming need oil well surety bonds.
If you have ever driven across Wyoming you would quickly be aware of the hundreds of oil wells dotting the landscape. The truth of the matter is, many of these oil wells are actually coal-bed methane wells and in the Powder River Basin area, thousands of them are abandoned. How successful the state will be at cleaning up the aftermath of the implosion of the industry depends largely on whether that particular well was covered by an oil well surety bond or a blanket bond. And there lies the crux of the problem, as Wyoming Oil and Gas Supervisor Mark Watson explained to Wyoming State legislature recently. Even though both are a type of surety bond, blanket bonds are proving to not sufficiently cover the costs of the plugging operation. This was not obvious when they were first allowed to be issued as part of the agreement with the state.

Oil Well Surety Bonds vs Blanket Bonds

As is true for many states, Wyoming requires any company that drills for oil, water or other substances such as coal-bed methane to create a guarantee that they will have sufficient funds to pay the costs of plugging an abandoned well if the company should go broke. Generally that includes the option of posting cash, an oil well surety bond or a blanket bond. The difference is that an oil well surety bond is posted for each individual well while a blanket bond is taken out to cover all the wells the company drills. Theoretically they should be sufficient to cover all the wells, but it appears that in the case of the Powder River wells, the blanket bonds were in place more to guarantee proper performance of the companies duties and were not calculated with the thought that a company could go bankrupt and need to cover the cost of capping every single well they owned. This would not be that big a problem if it was only a few wells. Unfortunately right now the number is closer to 1200 orphaned wells that are not sufficiently covered.

The Importance of Correct Bonding

This is a prime example of why it is so important for any company to make sure that the surety bonds they purchase are configured to do the job they are intended to do. If these companies had been required to purchase performance bonds to cover the performing of the business and oil well surety bonds to cover the costs of plugging the wells, this problem could have been avoided. Because the law didn’t require both, the small companies that had bought many of these wells when the price for methane had dropped were left holding the bag and often went bankrupt.

BuySurety Offers Surety Bond Security

While blanket bonds may look like an inexpensive fix, for many companies to perform responsibly they need to look beyond the basics and find the surety bond that does the job. This is why BuySurety is so proud of our knowledgeable customer service agents. When you talk to our agents, they will discuss your needs and find the right surety bond for your situation. Whether it is performance bonds for that next big project or oil well bonds for a drilling you are undertaking, we can help. Come by our site or call our agents to find out just how good BuySurety is at finding the right surety bond for your business, at the right price. We have been doing this for over 15 years and we know we can find the best surety bond solution for you.

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Public Official Bonds Missing in New Mexico

Written by JoAnn Smith on June 4th, 2014. Posted in Court Bonds, Indemnity Bonds, Latest News, New Mexico, Retail and Professional Services Bonds, Surety Bond Blog

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Do they need public official bonds in New Mexico?
A recently organized citizen’s committee is steamed about the lack of public official bonds for New Mexico officials and they aren’t about to be quiet about it. In fact, they are ready to be down-right noisy.
The center of the storm is in San Juan County, a 14,000 kilometer area with a population of a little over 130,000 people. But the size of the area isn’t what is in contention; it is their belief that public official bonds are required by the state’s constitution.

Required to Give Their Bond

According to Ron Lyman, President of the Citizens Government Oversight Group, the New Mexico state constitution requires all public officials to not only take an oath of office but to also post a bond, which he says means individual public official bonds such as the ones that BuySurety sells. But the County Commissioner doesn’t agree that individual surety bonds are needed. He says that the blanket bond that was taken out for the entire commission is sufficient. Blanket bonds have been used in many instances where a surety bond is required but one bond that covers all members of a group, such as the state or county commission, can be posted to cover all members of the group. Lyman says that the blanket bond is not sufficient and that each individual commission member must have their own public official bonds.

A Question of Interpretation

This is not the first time that the question of this particular part of the constitution has been brought up by this group. In fact, New Mexico Secretary of State has said that the same handful of people bring the subject up at his office every year for the last few years. The state has even brought the question before a group of magistrate judge candidates to find out their opinion, but none wanted to venture one. Some claim that the requirement is a left-over vestige of the old days when New Mexico was still a territory and lawmen of any kind were required to be bonded individually to protect citizens. But in the end this may need to be settled one way or another; as the citizens group is not about to pick up their ball and go home. Either the commission members need to invest in public official bonds or the New Mexico constitution needs a revision. Either way, it will take some time before anyone can agree on next steps.

Get Bonded at BuySurety

Of course, not every case of public official bonds or other surety bonds is this complicated. In the same manner, BuySurety can assure you that getting bonded for any kind of surety bond from public official bonds to auto dealer bonds is fast, easy and within your budget. Got questions? We have answers. Come by our site or call our helpful customer service reps today. Because when it comes to surety bonds, BuySurety has got you covered.

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Public Official Bonds Protect Pennsylvania Taxpayers

Written by JoAnn Smith on March 17th, 2014. Posted in Bond Types, Commercial Bonds, Court Bonds, Indemnity Bonds, Legislation, Pennsylvania, Surety Bond Blog

     public official bonds      
Rural Pennsylvania uses public official bonds for security
In Pennsylvania, the legislature is considering several new bills that if passed would expand services in non-urban areas and ensure proper procedure through the posting of public official bonds as security. Both bills will give the taxpayers of Pennsylvania new services that will improve their lives as well as the security of knowing that public officials that manage these services are bonded. The public official surety bonds will let the public know that the officials will be required to post bonds to ensure their accountability and give that public office a certain amount of public transparency. Whether to ensure the proper running of rural colleges or the legal streamlining of how the many boroughs in Pennsylvania are run, surety bonds will play an important role if these bills are passed.

Rural Areas Get Colleges

With the creation of Pennsylvania Senate Bill 1000, the legislature is hoping to create a pilot program for rural region community colleges. This would identify underserved communities in Pennsylvania that would benefit from the addition of a community college. It would then create a pilot program at one of the identified communities to prove the viability of this program. Since the monies needed to create this pilot program would come from taxpayers, it would also require the Chief Financial Officer hired to oversee finances for the pilot program is bonded with a yet unspecified amount through a proper public official bond to guarantee his or her performance.

Streamlining Boroughs Powers

Pennsylvania has a large number of boroughs that up until now have had a wide array of approaches to taxes, applications, certifications and the kind of power that councils will hold. With the passage of Pennsylvania House Bill 1719 the state is hoping to consolidate and streamline all of these procedures. One of those changes will be requiring all future borough controllers to post a public official bond to ensure faithful performance of their duties. In addition, the bill will outline the use of court bonds by taxpayers when appealing administrative decisions on taxes owed and bid bonds for purchase contracts. With the passage of this bill, these types of bonds and requirements will be consistent across the various boroughs in Pennsylvania.

Posting Public Official Bonds in Pennsylvania

While in some industries the idea of posting a bond is seen as part of doing business, public official bonds can sometimes be unexpected for those required to post them. Anyone who handles money on the public’s behalf can find themselves suddenly expected to post a public official surety bond as part of their job. When that happens, it is important to know that BuySurety is a trusted name in Pennsylvania and in all other 50 states for surety bonds. When looking for a surety bond company that falls within the requirements of a company authorized to do business as a bond company, you can be assured that BuySurety is a tried and true company that has been providing surety bonds to a wide array of businesses and government offices for over a decade.

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