Trustee Bond Requirements

550 W. 7th Avenue, Suite 1560, Anchorage, Alaska 99501-3567 Telephone: (907) 269-7900 Fax: (907) 269-7912 Text Telephone: (907) 465-5437 Email: insurance@alaska.gov Website: http://www.commerce.state.ak.us/insurance/ Sean Parnell, Governor Susan K. Bell, Commissioner Linda S. Hall, Director Division of Insurance BULLETIN B 10-06 TO: ALL PRODUCERS AUTHORIZED TO TRANSACT TITLE INSURANCE BUSINESS IN THE STATE OF ALASKA AND OTHER INTERESTED PARTIES RE: TRUSTEE BOND REQUIREMENTS Effective September 7, 2010, newly enacted AS 34.20.125 requires a person performing the duties of a trustee in the foreclosure and sale of real property under AS 34.20.070 to obtain a surety bond in the amount of $100,000 to protect the trustors and beneficiaries against fraud or defalcation by the trustee in the performance of the duties. Required Filing Each year the trustee must file evidence of the required bond with the director of the Division of Insurance. The evidence filed with the director must be a letter on the trustee’s letterhead that includes the following information: 1. the name and address of the trustee who is bonded; 2. the name of the bonding company; 3. the bond period; 4. the bond number; 5. the amount of the bond; 6. the name, phone number, mailing address, and e-mail of a person the division should contact for additional information; and 7. identification of the section of the bond form that describes the coverage required by AS 34.20.125. Also, a copy of the bond form must be included along with the letter. Summary of Bond Requirements To satisfy the requirements of AS 34.20.125, the bond must have the following characteristics: 1. the amount of the bond must be $100,000; 2. the bond must be for the benefit of the trustors and beneficiaries of trust deeds against fraud or defalcation by the trustee; and 3. the bond must be terminable at any time by the surety by sending written notice to the obligee, the principal, and the Division of Insurance. If a bond is terminated, the person who obtained the bond must notify the director of the bond’s termination and the date on which the bond termination becomes effective. For a complete description of this bonding requirement, see AS 34.20.125. If you have questions regarding this bulletin, please contact the Division of Insurance, P.O. Box 110805, Juneau, AK 99811-0805; (907) 465-2515; or by electronic mail at insurance@alaska.gov Dated: September 3, 2010 Linda S. Hall Director