Vehicle Title Lenders.
Virgina is cracking down on vehicle title lenders. S606 has just passed effecting all vehicle title loan companies. This new law requires businesses that provide loans against the equity of a vehicle, to become licensed and bonded.
The surety bond amount will be $50,000 per office not to exceed $500,000. Once the bond form becomes available we will post a copy of it.
Status: 4/11/10 – Approved by the Governor; effective 10/1/10
Alabama is in the process of changing some of their existing laws in regards to Certificates of Title with H 179/S 231
This new law if passed would change the surety bond amount. Currently in Alabama for defective titles the state requires a defective title bond 1.5 times the value of the car. H 179/s231 would give power to the Department of Revenue which would determine the bond amount.
4/8/10 – Passed second house; enrolled; forwarded to Executive Department
If this new law passes we will post a copy of the bond form if it has changed.
To curb fraud in the state of Kentucky new laws have passed making it tougher for Public Adjusters.
H 233 requires public adjusters to post a Surety bond in the amount of $20,000 “minimum” . The bond would benefit any person that sustains damage as a result of the public adjusters failure to act, conviction of fraud, erroneous acts, or conviction of unfair trade practices. The law was signed by the Governor on 4/8/10.
Fast Surety Bond Quotes
Applying for a surety bond with our company is easy and getting an approval is fast and painless. We pride ourselves on fast approvals and friendly service. Your Surety Bond application is marketed to 14 companies to make sure you get the lowest rate. We issue Surety bonds same day. Our Surety bond quote system lets you know in seconds, how much your bond should cost if you qualify.
Surety Bond rates and Underwriting :
A surety bond rate is based off your credit, experience, bond type, risk and financial condition. The underwriter will factor the qualifications listed above to determine Surety Credit. The Bonding process is similar to applying for a unsecured loan. Since every situation is unique we have a hands on approach. We use computer systems to automate the process, but we have a underwriter review every submission to guarantee that the client is getting the best rate.
Surety Bond Programs :
We have several programs able to help you or your client procure a bond.
Companies with bad credit or weak finanical’s :
If have less than perfect credit or financial’s we can help. We have designed a surety bond program that helps businesses obtain surety credit even if they have credit issues.
If you have been turned down by another company we can help. Many applicants have been turned down because of the type of bond. Our specialty is hard to place bond types, so don’t worry we can help.
Start up Companies :
If you are a new business we can help. Many surety companies are not willing to write surety bonds for start up companies. We understand that you have to get your feet wet sometime and have programs that can help your business.
If you are a Real Estate Closing Agent in the State of Iowa, you will now be required to carry a $25,000 Surety Bond and become licensed. This new Law SB 2348 was signed into law on 4/07/2010 by the Governor of Iowa . The Law will go into effect on 7/1/2011, so there will be plenty of time to get your bond.
You can check back later for a copy of the Real Estate Closing Agent bond form
A New law that was signed by the Governor of Indiana on 3/12/10 effects all tobacco manufactures.
This new law s 176 requires “nonparticipating tobacco manufacturers” to post a Surety bond in the amount of $50,000, or the amount the manufacturer would be required to deposit due to its previous calendar year’s sales in Indiana, whichever is greater. This new bonding requirement goes into effect on 7/10/2010. You can view the Tobacco Manufacturers surety bond form here.
A surety bond cost and approval is based off of your financial condition and credit. Don’t worry if your financial’s or credit are not up to par there are still programs that can help you.
You can learn more about Tobacco License bonds here.
Independent process servers must file a $10,000 surety bond for New York City. Process server companies must also file a surety bond for New York City the bond amount required for companies will be set at $100,000. The $100,000 surety bond and the $10,000 bond for the city is required to guarantee compliance with the stricter regulations that just passed. You can learn more about process server bonds here
This is just one example of many surety bond changes this year. Many predict that more businesses will have higher surety bond amounts and new bond requirements this year.
After April 15, your business may need a tax bond. A tax bond is a surety bond that is usually required by the State. Some of these bonds are needed the day you start your business others expire at the end of the year. The majority of tax bonds are required for retail businesses guaranteeing the payment of sales taxes to the obligee.
Different types of tax bonds
Tax Bonds for restaurants :
There are many different types of tax bonds. Some tax bonds are required for restaurants or bars to guarantee the payment of alcohol taxes. These bonds are also known as liquor bonds and alcohol bonds.
Penalty Bonds :
Some tax bonds are considered penalty bonds because your business was late on paying it’s taxes.
Sales Tax Bonds :
The bond amount for Sales tax bonds is either based off your projected gross income or the bond amount is already preset by the obligee. There are even Tax Bonds required by contractors to guarantee that your will pay your taxes on the materials your purchased wholesale.
How much does a Tax Bond Cost?
The cost of the surety bond can vary depending on the bond language, credit, financial stability and the State.
What to do if you need this Surety Bond?
The first thing that the surety will need is an application. Filling out the application should take five minutes or less. The surety will review your credit, financial stability to determine surety credit. After the application is completed you should receive an approval within the same day or the following day.
Florida MVD bonds expire April 30 of ever year.
What is A Florida MVD Bond?
A MVD is a surety bond. Surety bonds are required to fulfill a licensing requirement or financial obligation. Bonds protect the obligee, from fraud, breach of contract and in some cases certain payments. Check your state Statutes referenced in your Surety Bond form to see what applies to you.
Who is requiring the Bond?
Florida MVD Bonds are required by The State of Florida department of Highway Safety and Motor Vehicles. This is the Obligee. A Obligee is the one that is requiring the bond. The Principal is the person or the business applying for the surety bond.
What does it do?
Taken from the Florida bond form
“WHEREAS, such bond shall be in favor of any person in a retail or wholesale transaction who shall suffer any loss as a result of any violation of the conditions herein above contained. NOW, THEREFORE, if the above named principal shall fully comply with the conditions of any written contract made by him as such dealer in connection with the sale or exchange of any motor vehicles, and shall pay or cause to be paid to any person in a retail or wholesale transaction any loss or damages which such person shall sustain as a result of any failure to comply with the conditions of any written contract made by such dealer in connection with the sale or exchange of any motor vehicle or as a result of any violation of the provisions of Chapter 319 or 320, Florida Statutes, in the conduct of the business of which he is licensed, then this obligation shall be void, otherwise to remain in full force and effect.
Basically if you violate the law the damaged party can file a claim and recoup their loses.
What happens if you have a claim?
If you have a claim and the surety pays out you must pay back the surety for the lose.
Surety bonds are underwritten similar to a loan. The surety reviews your credit and financials to determine surety credit.
How much do Surety Bonds cost?
Surety bonds for these bonds can start at 1% for good credit and qualifying assets. For clients that have issues rates can be anywhere from 3% to 20%.
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.
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