A massive Dept. of Defense authorization bill that, at press time, was awaiting President Obama’s signature includes a provision to eliminate much of the fraud in individual surety bonds.
When, as expected, President Obama signs into law the National Defense Authorization Act, a new military spending bill, he probably won’t know about Section 874, which upgrades the minimum standards for surety-bond assets.
PhScarborough had pledged coal waste at this West Virginia tract as the asset backing his bonds. Edmund C. Scarborough, who owned the biggest and most public individual surety business in the U.S., once claimed that his guarantees were backed by solid assets comprised of valuable coal waste.In federal bankruptcy court in Tampa July 17, Scarborough and his wife, Yvonne, filed for protection from their creditors, listing assets of $4.5 million and liabilities of $16.2 million.The 70-page filing states that the main business asset held by the debtors is IBCS Mining, a Charlottesville, Va., based company that
