As we approach the end of 2017, it’s important to remember some surety bonds are written to expire at the end of each year, meaning the renewal date for these bonds is quickly approaching. If you currently have a bond with a fixed term end-date at the end of the year, you must renew it on or before December 31, 2017 to avoid a lapse in coverage and the potential for disciplinary action. Stay current on your licensing requirements by renewing in the next few weeks and guarantee your business will still be in compliance come January 1. For more information on any of the bonds listed below or general information regarding your renewal, refer to our dedicated bond pages or contact a surety bond expert at 1 (800) 308-4358.
January 1 Renewal Bonds
- Mortgage, Transmitter, Finance, Lender or Check Casher Surety Bond: Individuals who work as a mortgage lender/broker, money transmitter, check casher, retail seller or money lender in Washington D.C. are required by the Banking Bureau of the District of Columbia’s Department of Insurance Securities and Banking Division to post this surety bond. This bond ensures professionals work in accordance with all applicable provisions of the D.C. Official Code and D.C. Municipal Regulations.
- Denver Merchant Guard Company Surety Bond: The Department of Regulatory Agencies requires companies who provide professional security services in Denver to post a merchant guard company bond. This bond guarantees a company will pay all wages and salaries owed to its agents and employees, according to Chapter 42, Article V of the Revised Municipal Code of the City and County of Denver.
- Franchise (New) Motor Vehicle Dealer Surety Bond: The Florida Department of Highway Safety and Motor Vehicles requires franchise auto dealers to post a $25,000 surety bond. By purchasing this bond, auto dealers pledge to comply with the standards set in chapters 319 and 320 of the Florida Statutes.
- Liquor Manufacturer Distillery Tax Surety Bond: The Georgia Department of Revenue requires distilled spirits professionals to post this bond as a requirement for a license. These bonds ensure wholesalers and manufacturers conduct business according to the Georgia Alcoholic Beverage Code, as well as all of the rules and regulations enforced by the commissioner of the Department of Revenue.
- Designated Agent Surety Bond: All motor vehicle dealers in Illinois must be licensed to lawfully operate. The required amount of the bond for auto dealers will increase from $20,000 to $50,000 per location, according to Senate Bill 1556, which goes into effect on January 1, 2018.
- Payday Loan Reform Act Surety Bond: Persons engaged in making payday loans must purchase a payday lender bond for each location in which loans will be made. A license from the Department of Financial and Professional Regulation is required for every person or entity acting as a payday lender.
- Remittance Agent Surety Bond: Illinois law mandates all remittance agents to purchase and maintain a remittance agent bond as a requirement for obtaining a license. The bond ensures the bonding agent will be liable for any and all financial damages suffered by consumers for not complying with the rules and regulations stated in the Remittance Act.
- Residential Mortgage License Surety Bond: The state of Illinois mandates any company or entity involved in the business of residential mortgage brokering, funding, originating, servicing or purchasing should post a surety bond as part of the licensing process.
- Mortgage Broker Surety Bond: Indiana mortgage broker bonds are in effect for 12-month terms and must be renewed annually. A mortgage broker bond is required by the Indiana Loan Broker Act to protect consumers from financial loss due to fraud and other unethical practices committed by mortgage professionals.
- Auctioneer Surety Bond: Auctioneers in the state of Louisiana are required by the Louisiana Auctioneers Licensing Board to post a $10,000 auctioneer bond. By posting the bond, auctioneers pledge to comply with the rules and regulations highlighted in the Louisiana Revised Statutes.
- Motor Vehicle Dealer Surety Bond: Used motor vehicle dealer licenses in the state of Louisiana are valid for two-year periods. All licenses expire on December 31 with the year of expiration depending on the district your parish is in. If you live in districts 4 and 5, your license will expire at the end of this year, as it’s an odd-numbered year. This list can help you determine your parish’s district, license expiration date, and administrative coordinator.
- Liquor License Surety Bond: The Commonwealth of Massachusetts Alcoholic Beverages Control Commission requires any individual involved in the selling, storing or manufacturing of alcoholic beverages to be licensed and bonded to legally work in the state. With this bond, customers are protected from unlawful practices that could potentially cause heavy financial damages.
- Professional Solicitor and Commercial Co-Venturer Surety Bond: The Massachusetts Office of the Attorney General requires fundraisers and solicitors in the state to post a $25,000 surety bond. Professional solicitors and commercial co-venturers agree to comply with the provisions of Sections 18 to 35 of Chapter 68 of the General Laws of Massachusetts by posting the bond.
- Mortgage Loan Originator Surety Bond: The mortgage loan originator bond is required to protect consumers from financial loss due to unethical or unlawful behavior committed by a mortgage professional in the state of Michigan. This bond type is required by the Michigan Office of Insurance and Financial Regulation.
- Auto Dealer Surety Bond: Franchise, used, wholesale, auto auction and broker-dealers in the state of Montana must submit an annual report, according to the Montana Department of Justice Motor Vehicle Division. The annual report must be accompanied by the required fees and bonds or a continuation certificate.
- Collection Agency License Surety Bond: Collection agencies in the state of Nebraska are required by the Nebraska Secretary of State to post a collection agency bond. By posting the bond, a collection agency agrees to comply with all rules and regulations stated in the Nebraska Revised Statutes.
- Motor Vehicle, Trailer, Wholesale or Motorcycle Dealer Surety Bond: All auto dealers in the state of Nebraska must post a $50,000 surety bond, as required by the Nebraska Motor Vehicle Industry Licensing Board. By posting the bond, auto dealers agree to adhere to rules and regulations outlined in the Nebraska Revised Statutes.
- Used Motor Vehicle Dealer Surety Bond: Used motor vehicle dealers in Oklahoma must submit a surety bond to the Used Motor Vehicle Parts Commission before being legally licensed. The bond ensures the dealer will comply with all local and state laws concerning auto dealers.
- Bingo Gross Receipts Surety Bond: Texas bonds for bingo prize fee schedules are required by the Texas Lottery Commission for individuals applying for original regular licenses to conduct bingo events. The bond is due on the same date your renewal license packet is due.
- City of Dallas Paving Surety Bond: Dallas paving bonds are required by the City of Dallas Department of Public Works and Transportation for individuals who are contracted for construction or repair of sidewalks, curbs, gutters or driveways.
- Continuous Sales Tax Surety Bond: All retailers and persons selling taxable merchandise in the state of Texas must obtain a continuous sales tax surety bond before conducting business. This is a requirement from the Texas Comptroller of Public Accounts.
- Mixed Beverage Receipts Tax Surety Bond: Mixed beverage sales tax and gross receipts tax surety bonds in Texas include both mixed beverage excise and gross receipts tax bonds. These bonds ensure permit holders are paying all taxes, interest, penalties, and costs as mandated by chapters 151 and 183 of the Texas Tax Code.
- Motor Fuels Tax Continuous Bond: Individuals who supply, import, export, deal or blend gasoline or diesel fuel within the state of Texas must be bonded, as required by the Comptroller of Public Accounts.
Your surety provider should have already been in touch to remind you your bond is coming up for renewal, but if you have not yet taken care of it, it can be easy to forget about during the busy holiday season. If you have not yet renewed, contact your bond provider as soon as possible to receive your quote for your next term. Often times a renewal bond is subject to an underwriter’s review, giving you an opportunity to qualify for a lower rate than you did the previous year.
Since your business is required by the law to be bonded, it is important to avoid a lapse in coverage and complete your surety bond renewal on or before December 31. Allowing coverage to expire could result in license suspension or cancellation, which could mean you have to restart the licensing process, including the payment of all licensing fees.