Alaska Surety Bond Types
As of November 2008, the state of Alaska now has legislation requiring regulation of the state’s mortgage broker and lender industries. Called the Alaska Mortgage Regulation Act, this piece of legislation will ensure that mortgage brokers and lenders are, as of July 1, are fully licensed and bonded in order to be permitted to stay in business.
The mortgage industry is just the latest in a long list of types of businesses who are regulated by surety bonds in Alaska. Surety bonds are taken out for most construction jobs and perform a variety of functions, from making sure that subcontractors are paid in a timely manner to ensuring that the homeowner and the contractor have the same idea about the work and it is completed to both parties’ specifications. Surety bonds are also used by janitorial companies to protect their customers from possible theft or damage by their employees, and travel agents are also bonded since they handle large quantities of money on behalf of airline and hotel companies.
Alaska Surety Bond Requirements
The purpose of a surety bond is to protect consumers (and, often, the state or local government) from fraudulent, unethical, or inappropriate business practices. These bonds are often required by the government, as in the case of mortgage bonds, and must be purchased and kept current in order to do business in Alaska.
Surety bonds tend to vary in cost and amount based on the industry needing the bond, the company supplying the bond, and also on the financial strength of the company who is required to become bonded.