Utah requires any business or person that sells a certain amount of vehicles per year to be licensed.
A MVD bond is considered a surety bond. The bond is required in order to be licensed so you can sell vehicles
Pawnbrokers that engage in selling, exchanging, or pawning motor vehicles will be required to now obtain a MVD bond
S 2724/H 1219 – Consumer Collection Agencies.
This new bill that is still going threw the Senate would require Consumer Collection Agencies to be license and obtain a $100,000 Surety bond. This bond is know as a collection agency bond.
S 2400 is a new bill that clarifies the cancellation provision of the existing law concerning the Florida MVD bond required by businesses/persons selling motor vehicles and Mobile Homes. This bill adds a 30-day cancellation clause. This bill is currently in the Senate.
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Mortgage Surety bonds are not the same as a Mortgage bond you would purchase as a investment. A Mortgage Surety bond is required by the majority of states in order to obtain a mortgage License and transact loans. Typically the average bond amount is set at $25,000. Always check with the state to obtain the current bond form as well as the amount needed.
There are bond alternates, but are they as good as a surety bond.
First alternate instead of paying for a surety bond you could post 100% collateral with the obligee if they allow it. Some obligee accept a cashiers check or a ILOC. A ILOC stands for irrevocable letter of credit. The obligee may provide sample verbiage of how they want it to be written or you bank has a sample form all ready drafted. If you decide to obtain a ILOC the bank normally will want the ILOC to be secured by assets or cash. Banks also charge a fee for providing these services. The prices for a ILOC is around the same price for a surety bond.
The problem with collateral is that it may take you several years before the collateral is returned to you. The obligee normally will not release the collateral until your business has been released of all liability. Keep in mind that there is no statute of limitations on fraud. From what I have been told from customers it takes on average of 3 years with some obliges to release your collateral. I once had a client that took 6 years for to get his collateral back. He had to jump though several hopes before they would even consider returning his money back to him. The obligee required for the client to obtain a surety bond and have the surety write a letter stating that they would consume all past liability. With the way the market is today I don’t see a surety doing that again.
In this economic climate I would rather pay a small premium rather then tying up $10,000 or $25,000 of my working capitol.
Do surety companies perform background checks?
Many people call and ask if I get a fidelity bond will the surety perform a background check on my new hires? The answer is no. You would think that it would be in the surety’s best interest to do so, but the cost would outweigh the premium.
Some surety companies’ offer discounted services for using companies they recommend for background checks.
A Fidelity bond is more of an insurance policy than a bond. Limits for this type of coverage’s start at 25,000 and can go as high as a $25,000,000. A fidelity bond is a essential insurance product that ever business owner should carrier.
Fidelity bonds protect the policy owner from employees that steal from them
AB 1319 – Talent Service. Provides that prior to advertising or operating in business, a talent service shall file a bond with the Labor Commissioner a surety bond in the penal sum of $50,000 this is a conditioned upon compliance.
The obligee for the talent Services bond shall be in favor of, and payable to, the people of the state of California, and shall be for the benefit of any person injured by any unlawful act, omission, or failure to provide the services of the talent service. The Surety bond cost as well as approval is based upon the principals credit and financial condition.
This bill is currently in the senate for a second time,amended and re-referred to committee on appropriations
To determine the cost of a Ohio Surety bond depends on the bond amount type of bond and financial stability of the principal.
The word Surety is a noun pronounced sur e ty, the definition of the word Surety is: a guarantor, which will assume responsibility of another person (principal) obligations if the principal cannot, or does not meet them. The term Surety has existed for thousands of years.
Example of Surety
Have you ever heard the saying “don’t ever be anyone’s Surety”, what exactly does it mean? You would guarantee that the obligations of the person you where acting as Surety for. If you were acting as a Surety for a particular obligation of another (Principal) if the obligations where not met you would have to meet those obligations on the principals behave. Surety has been around for thousands of years ago when someone would vouch for another for whatever circumstance.
How a Surety brings peace of mind
Let us suppose for a moment that you where an owner of a large piece of land and you wanted to develop it. After years of research money and time, you decided you wanted to build a commercial building on that land you hire a contractor to complete the project. At first, your contract is doing a great job and everything seems to be going smoothly. After six months of construction, the project starts running behind schedule and you have failed inspection. The inspector tells you that the foundation is not up to code and it needs to be completely redone on top of that, the contractor walks form the job because the project has become unprofitable. That is where a Surety would come in if you made that one of your requirements for the contractor to obtain. The Surety would do one of the following things they would hire a new contractor, reimburse you monetarily, or finish the project. See the Surety would take up the obligations that the principal in this case contractor’s obligations. After the Surety has settled the claim the Surety would than go after the principal for the loss to the Surety.
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