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Georgia Trust Bonds Defined By Court

by Surety Admin 4. September 2010 12:18
Georgia SB 131 revises the Trust Code. The new law provides that a trustee is required to furnish a bond only when the court deems it necessary to protect the interests of the trust, or if the trust instrument required one. The new law, however, also permits the court to excuse the requirement, reduce or increase the amount of a bond, release a surety, or allow the substitution of another bond with the same or different sureties. A regulated financial service institution qualified to do trust business in the State is not be required to give a bond, even if the terms of the trust required one. Of note, the new law permits the bond to be secured by an individual domiciled in the State or by a licensed commercial surety that is authorized to transact business in the State. The new law further provides the bond must be in an amount equal to double the value of the estate, but permits a commercially obtained bond to be in an amount equal to the value of the trust estate.
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Surety Blog Categories:  Court Bonds | Surety Law Changes

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