May 2021 Legislative Roundup

Mar 2021: Legislative Roundup: Arkansas and Kentucky

During April 2021, Arkansas has experienced several legislation changes, which can impact many industries’ bond requirements. Arkansas passed a new Time-Share Act and an act pertaining to the maintenance of cemeteries. Both of these went into effect on April 15, 2021, influencing industries that require these bonds. Kentucky is another state that has experienced some changes; in May, Kentucky mortgage broker bonds will shift to NMLS electronic surety bonds.

Arkansas Time-Share Act

Bill AR H 1834 went into effect on April 15, 2021, and requires interest transfer service providers to provide a bond. This bond must be provided to the Arkansas Real Estate Commission, and it should not exceed $25,000. This bond amount is determined by the commission. The act exempts the National Association of Real Estate Realtors and Brokers and does not apply to a broker who may have maintained a place of business before the legislation was put in place.

Arkansas Perpetually Maintained Cemeteries

Bill AR H 1141 amends the cemetery act that was in place previously. This act decrees that cemeteries must be registered in order for bodies to be buried in them. This new legislation requires a board of trustees to have its trust funds bonded, meaning trustees must get bonded to maintain their cemeteries.

Kentucky Mortgage Broker Bonds’ NMLS Shift

The commonwealth of Kentucky is now converting to NMLS electronic surety bonds for its mortgage brokers as of May 15, 2021. To get bonded, applicants must have all the required items on the appropriate checklist before they submit an application to the regulator. Find more information on Kentucky’s State Licensing Requirements page. Applicants can submit applications to the Kentucky licensing board via email to [email protected] or contact the Office of Financial Institutions’ licensing staff by phone at (502) 782-9020.

Need a Surety Bond?

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