Similar to my recent post about SB 232 (Mortgage Broker Bonds), Alabama SB 234 created a new surety bond requirement for the state’s consumer lenders. The new law, effective on November 21, 2009, grants the State Banking Department the authority to make consumer lenders obtain a license bond in place of meeting current net worth requirements. Once again, the Banking Department is authorized to determine the bond amounts. No such surety bonding requirement existed for consumer lenders prior to this enactment.
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