Bond-Pro | Surety Technology

Uncertain Surety: Expiration Of A Limitation Against A Principal Is Not A Defence To A Bond Claim

Sometimes failing to arbitrate a dispute with a binding arbitration provision can be fatal to a claim under a construction contract, particularly if the limitation period to commence the arbitration has expired. But, in the case of a project with a performance bond, things can sometimes become more complex....

April 22, 2020 Bond-Pro Webmaster Claims, Court, Legislation, Market, Surety, Uncategorized.

Wet Ink Signatures Requirements May Fade After Coronavirus

pril 10, 2020, 4:56 AM; Updated: April 10, 2020, 10:34 AMListen In-person signatures were on decline pre-virus Global pandemic has accelerated use of eSignatures, expert says Gabe Teninbaum was stuck in a precarious situation when he had to close on his mortgage refinance on March 24. At this point, states...

April 20, 2020 Bond-Pro Webmaster Blog, Legislation, Market, News, Repost, Standards, Surety.

Social Distancing, Shelter Orders Impede Construction Bonds

The surety industry is asking federal, state and local officials to take emergency action to update decades-old surety rules requiring stamped notarizations and ink signatures that the Covid-19 pandemic has made impossible or more difficult while social distancing and shelter rules are in place. The industry seeks permission to...

April 8, 2020 Bond-Pro Webmaster Blog, Legislation, Market, News, Repost, Standards, Surety.

Does COVID-19 Make a Contract Impossible to Perform?

Wanting to diversify his investments, Ernest “Big Daddy” Bux signed a franchise agreement with GA Fitness last year. Construction by Big Daddy’s contractor Bill Toosuit is scheduled to be completed for in time for an early May grand opening in the new strip center owned and managed by Mawl...

March 24, 2020 Bond-Pro Webmaster Blog, Legislation, Repost.

Obscure But Important Surety and Guarantee Rules

Texas surety law contains obscure procedural rules that can have outsized consequences. Chapter 43 of the Civil Practice and Remedies Code is an important example. Applicability This chapter applies to everything that is a “surety” as defined by the statute. The statute’s definition includes “an endorser, a guarantor, and...

February 8, 2020 Bond-Pro Webmaster Blog, Legislation, Repost, Surety.

Audit alleges W.Va. DEP violated state law for nearly a decade

In a report presented to the joint Post Audit Committee, legislative auditors contend that the state Division of Environmental Protection has been skirting a law designed to make sure that coal mine reclamation bonds are on solid financial ground. Coal companies have to get the bonds to guarantee the...

September 27, 2019 Bond-Pro Webmaster Blog, Legislation, Repost.

The Sword Of Damocles Hangs Over Miller Act Sureties And Brokers: Scollick Case Stayed Sixty Days For Mediation, But Outcome Remains Uncertain

On August 6, 2014, plaintiff-relator Andrew Scollick filed a complaint in the United States District Court for the District of Columbia against eighteen defendants for multiple violations of the False Claims Act (“FCA”) in connection with an alleged scheme to submit bids and obtain millions of dollars in government...

September 26, 2019 Bond-Pro Webmaster Blog, Legislation, Repost.

Non-Signatory Surety Bound By Arbitration Clause in Incorporated Contract

An arbitration provision in a contract typically applies only to the contracting parties. Where, however, the contract is incorporated by reference into a second agreement, if it is broad enough, the party to the second agreement–although a non-signatory to the original agreement–may find that the arbitration provision applies to...

September 5, 2019 Bond-Pro Webmaster Blog, Legislation, Repost.

Canada: Performance Bonds: The New Form 32 Under Section 85.1 Of The Ontario Construction Act

Following up on our previous bulletin, Performance Bonds: What Project Finance Lenders Should Know, in this bulletin, we compare the widely used Canadian Construction Documents Committee’s Performance Bond Form 221-20021 (“CCDC Form”) with the new Form 32 – Performance Bond that is mandated for certain projects by the Ontario...

July 10, 2019 Bond-Pro Webmaster Blog, Legislation, Repost.

New Jersey Passes Licensing Law for Nonbank Mortgage Servicers

New Jersey recently introduced legislation that regulates mortgage servicing in the state. Under the new law, which takes effect July 28, servicers must be licensed and obtain a $100,000 New Jersey mortgage servicer bond in order to operate legally. The law also specifies the obligations and responsibilities of licensed...

June 18, 2019 Bond-Pro Webmaster Blog, Legislation, Repost.