Title 5 Banking
3400 Preneed Funeral Contracts
3402 Surety Bond or Irrevocable Letter of Credit
5 Del.C. §3409
Effective Date: November 11, 2007
1.0 A licensee shall file with the State Bank Commissioner (the "Commissioner") an original corporate surety bond or an irrevocable letter of credit in a form satisfactory to the Commissioner in accordance with 5 Del.C. §3411.
2.0 A licensee shall obtain a surety bond or irrevocable letter of credit in a minimum amount in accordance with the following table based upon the maximum dollar value of the trust funds it held as a trustee during the twelve month period ending October 31 that precedes the calendar year for which the bond or irrevocable letter of credit is effective:
Maximum Dollar Value of Trust Funds Held by Licensee |
Minimum Required Amount of Surety Bond or Irrevocable Letter of Credit |
not more than $50,000 |
$50,000 |
$50,001 - $75,000 |
$75,000 |
$75,001 - $100,000 |
$100,000 |
$100,001 - $125,000 |
$125,000 |
$125,001 - $150,000 |
$150,000 |
$150,001 - $175,000 |
$175,000 |
$175,001 and over |
$200,000 |
3.0 The Commissioner may require a licensee to obtain a larger surety bond or irrevocable letter of credit based upon the licensee’s individual circumstances.
4.0 A licensee that obtains a surety bond or irrevocable letter of credit that is effective for more than one year shall review on November 1 of each year the dollar value of the trust funds it held during the previous twelve month period to ensure that the minimum required amount for its surety bond or irrevocable letter of credit is maintained for the following calendar year.
11 DE Reg. 693 (11/01/07)
