Of major concern in the past few months has been the continued economic decline not only here in the United States, but around the world, as well. The stock market has not been this bearish in a very long time. The banking community has not seen such devastation since 1929. How did this happen?

I would like to share my personal beliefs that the present financial difficulties are the result of powerful human failings. Perhaps the most obvious reason for the present state of affairs is greed. Have we compromised our American ethic of achievement through hard, honest work for the illusory reward of instant gratification without forethought of its repercussions? The concept of, “I want it now whatever the cost or whomever it costs” seems to have out-distanced all else. This myopic behavior has had dire consequences for our economy.

Greed typically also signals a loss of ethical behavior. The failures and forced sales of major financial institutions in this country are the detritus of the false ethic of “getting the deal done” regardless of the consequences. Has the idea of searching for and doing the right thing become an alien concept? Does self-interest trump common sense? What are we to do as witnesses to the giving of multi-million dollar separation packages to corporate officers who have driven their corporations into the ground? Is it right to reward incompetence and failure? Do we reward these mistakes at the deprivation of the interest of shareholders and depositors? Where is our sense of decency or responsibility to each other? It is clear that we need to recommit to ethical practices in our business endeavors. We have the basic logic of what is right and wrong; we can no longer tolerate destructive practices by looking the other way or expecting someone else to address them.

I believe that history is an apt teacher, and we need look no further than the 1929 stock market crash for some understanding of our current situation. A significant contributor to the 1929 crash and subsequent depression was the result of selling “phantom” stocks, worthless paper. Now, in 2008, “phantom” credit fuels our crisis. When we forget the lessons of history, we are forced to relearn them at considerable cost to ourselves.

Living and working in the New York City area, the home of Wall Street, I am reminded each day of the consequences of failing to adhere to ethical business practices. Despite our difficulties however, I believe that our nation remains strong and continues to be resilient. The surety industry prides itself, and rightfully so, on providing principled service to those who receive or benefit from surety credit. As NASBP members, we commit ourselves at all times to strive toward principled, professional conduct in our business affairs. That is why each year we sign a statement committing ourselves to be knowledgeable about and to strive to adhere to the NASBP Code.

As my term as President moves along, I am happy to say that the four NASBP Regional Meetings were extremely successful. Both Florence and I are most appreciative of the new and reaffirmed friendships that we have made at NASBP and industry meetings across America.

The Mid Year Board Meeting will soon be upon us, and it is the NASBP Leadership’s intention to work diligently towards improving our organization and making us better and stronger. NASBP has undertaken a strategic planning process to prepare NASBP to meet the challenges and opportunities of the future, making sure that NASBP at all times, will be a responsible, forthright, and valued steward of your time and resources. I hope to see you soon, and I wish you the happiest of Thanksgivings.

William F. Maroney
President

William F. Maroney is Senior Vice President of City Underwriting Agency, Inc. of Lake Success, New York. He can be reached at bmaroney@cuagency.com.

NASBP is investing in the resources necessary to make sure that the bond producer’s voice is heard and understood. I am pleased to relate that Larry LeClair, consummate government relations professional with advocacy experience at state and federal levels, has joined the government relations team at NASBP as Assistant Director, Federal and State Relations. Larry came to NASBP from North American Securities Administrators Association, an international trade organization representing securities commissioners in all 50 states, the U.S. territories and Canada, where he served as the State Legislative Affairs Manager. Larry also has served in government relations positions with the American Institute of Certified Public Accountants and the American Tort Reform Association. With Larry on board, NASBP will embark on a proactive advocacy agenda, including the following:

There are many ways to be an activist; but the fundamental source of all activism is personal contact and direct action by members. To that end, I urge all of you to make it your priority to visit with your elected officials at home and in Washington, DC in September 2009. If you have not visited the NASBP web site lately, stop by—much material already resides on the web site about government relations and industry relations subjects that can assist you with your visits. The government relations team also stands ready to assist you with advice, information, and assistance. We may also call on you to help us in your state or locality or to ask that you contact your elected official about a specific legislative or regulatory issue. Your activism is much needed and always appreciated and will pay substantial dividends for our industry in this uncertain time.

These materials are provided to NASBP members and affiliates solely for educational and informational purposes. They are not to be considered the rendering of legal advice in specific cases or to create a lawyer-client relationship. Readers are responsible for obtaining legal advice from their own counsels, and should not act upon any information contained in these materials without such advice.

According to recent press reports, of the more than 310,000 votes cast, McClintock led by 451 votes. However, several thousand ballots remained uncounted. Indications are that the race results may not be officially certified until after Thanksgiving.

Finally, two candidates supported by SuretyPAC, incumbent Congressman Steve Chabot (R-OH 1st), and Republican Congressional Candidate Darren White running for the 1st Congressional District of New Mexico were defeated.

Victorious Candidates Who Were Supported by SuretyPAC

Defeated Candidates Who Were Supported by SuretyPAC

Race Undecided

For more information about SuretyPAC and to complete the SuretyPAC Prior Approval Form to authorize an agency to be solicited by the NASBP PAC, go to http://www.nasbp.org/suretypac.

Coffman Accepts SuretyPAC Check – Bud Withrow (right) of CoWest Insurance Associates, LLC of Denver, CO, awarded Representative Mike Coffman (R-CO 6th) (left) with a SuretyPAC check. Coffman ran and won in the race to replace Congressman Tom Tancredo, who is retiring. Hank Eng was the democratic candidate who lost in that race.

Kerry’s Staff Accepts SuretyPAC Check – Leigh Garland (right), National Finance Director on the campaign staff of Senator John F. Kerry (D-MA), recently accepted a SuretyPAC check from Larry LeClair (left), NASBP Assistant Director, Federal and State Relations. Senator Kerry ran for re-election and won against Jeffrey K. “Jeff” Beatty, who ran on the Republican ticket, and Robert Joseph Underwood, who ran on the Libertarian ticket.

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These “fill-in” PDFs are housed in a password protected area of the NASBP web site and are accessible for download after the member or affiliate agrees to the accompanying “click wrap” user license and supplies their contact information, when prompted.

To save the completed bond form in electronic format, users must have Adobe Acrobat Standard or Professional installed onto their computer. If they have Adobe Acrobat Reader, users will be able to complete and to print the form, but they will not be able to save the completed form electronically. NASBP suggests that users retain a printed copy of their completed forms.

The ConsensusDOCS™ bond forms include the following documents:

• ConsensusDOCS™ 260: Performance Bond Form
• ConsensusDOCS™ 261: Payment Bond Form
• ConsensusDOCS™ 262: Bid Bond
• ConsensusDOCS™ 263: Warranty Bond
• ConsensusDOCS™ 470: Design-Build Performance Bond (Surety Liable for Design Costs)
• ConsensusDOCS™ 471: Design-Build Performance Bond (Surety Not Liable for Design Costs)
• ConsensusDOCS™ 472: Design-Build Payment Bond (Surety Liable for Design Costs)
• ConsensusDOCS™ 473: Design-Build Payment Bond (Surety Not Liable for Design Costs)
• ConsensusDOCS™ 706: Subcontract Performance Bond
• ConsensusDOCS™ 707: Subcontract Payment Bond
• ConsensusDOCS™ 760: Subcontract Bid Bond

To purchase other documents that are part of the ConsensusDOCS™ library, go to http://www.consensusdocs.org. Click on the word “Purchase.” Then, scroll down to the bottom of the page to choose a subscription or the Meter Mode “al–a-carte” system. To receive the NASBP discount, when prompted for the Partner Code, enter: NASBP and when prompted for the Promotion Code, enter: 400. For more information how NASBP is involved in the ConsensusDOCS coalition, click here.

• Jon Corzine, Governor of New Jersey;
• John Engler, former Governor of Michigan and current President of the National Association of Manufacturers (NAM);
• Brian Burgett, testifying on behalf of the Associated General Contractors of America (AGC);
• William Crosbie, Chief Operating Officer of AMTRAK;
• John Porcari, Secretary of Transportation for the State of Maryland; and
• Terry Dillion, testifying on behalf of the National Utility Contractors Association (NUCA).

In his opening remarks, Chairman Oberstar stated that nearly a million construction workers are unemployed; the construction industry is suffering the highest unemployment rate (9.9 percent) of any industrial sector; and construction firms are operating on the margin or worse. There are three stark compelling reasons for decisive action by Congress that include: investing in America, rebuilding our economy, and putting Americans back to work. Chairman Oberstar added that when Congress reconvenes in November, he will introduce legislation that provides for an infrastructure economic stimulus package that would immediately spur economic growth and create jobs in America.

Background on the ESA
In February 2008, Congress adopted the ESA to revitalize the sagging economy which included dispersing refund checks to U.S. taxpayers. The House believed a second stimulus package was required and as a result, in September subsequently passed H.R. 7110, the “Job Creation and Unemployment Act of 2008.” The proposal included capital investments relating to public infrastructure projects to improve the Nation’s highways, bridges, and water infrastructure. However, the Senate did not act on the measure.

NASBP to Promote the Importance of Surety Bonds on the Hill
The NASBP Government Relations Team is in the process of putting the finishing touches on a document that will be distributed to Capitol Hill concerning its position and recommendations relating to a second ESA. The position piece allows NASBP to become actively involved in the debate concerning the second ESA by emphasizing that surety bond requirements at all levels of government will play a crucial role in the Nation’s investment in infrastructure by ensuring that interested bidders are qualified to undertake these public works projects.

The position piece also emphasizes that due to the current state of the economy now more than ever surety bonds are essential for government sponsored construction projects to ensure that taxpayer funds will be preserved in the event of contractor default, and that subcontractors and suppliers will have a payment remedy in the event of contractor bankruptcy or nonpayment.

This piece coupled with several other issue briefs, which the Government Affairs Team is drafting, will be used to educate members of Congress and their staff concerning the key issues facing the surety industry.

Newly Formed Ad-hoc Coalition
In October, NASBP began working with a recently formed industry coalition, which includes the Associated Equipment Distributors (AED), the Associated General Contractors of America (AGC), the American Society of Civil Engineers (ASCE), the National Association of Clean Water Agencies (NACWA), the National Utility Contractors Association (NUCA), the Portland Cement Association (PCA), and others. The group’s mission will be to convince lawmakers that by enacting a second ESA package the result would lead to creating new jobs and stimulating the economy.

This ad-hoc coalition is in the process of creating an issue paper which will be used to educate members of Congress and their staff on the importance of infrastructure development and the economy. The document includes insightful information such as: the number of jobs lost in the construction industry due to the downturn in the economy, the amount of jobs that could potentially be created if Congress were to adopt a second ESA package, and the number of construction projects that are ready to begin immediately but simply lack adequate funding.

For more information about NASBP Advocacy efforts, go to http://www.nasbp.org/advocacy

For more information about NASBP involvement, go to http://www.nasbp.org/consensusdocs.

Jack also was a tireless activist on behalf of the construction industry in Massachusetts, serving as Chair of the Massachusetts Construction Industry Council and on the Board of Directors of the Associated General Contractors of Massachusetts and Chair of its Government Relations Committee. “AGC and the entire Massachusetts construction industry has lost a passionate advocate, spokesperson and friend,” related Robert L. Petrucelli, President and CEO of the AGC of Massachusetts.

As a distinguished and engaged volunteer and leader, Jack touched many in the surety and construction communities, employing to great effect his enthusiasm, wit, and warmth to inform and to win over those of differing opinions or positions. Upon learning of Jack’s passing, Massachusetts Division of Capital Asset Management Commissioner David Perini remarked: “no matter how serious the matter under discussion was or how contentious, Jack always injected humor, realism and a spirit of reconciliation.”

NASBP, its members, and all who had the opportunity to meet and to work with Jack were immeasurably enriched, with Jack serving as a catalyst for many bond producers to seek greater involvement in NASBP. Current Chair of the Governments Relations Committee, Larry McMahon, proudly related that he is among those bond producers. Larry wrote of his first meeting with Jack and his wife, Pam, at an NASBP dinner function: “By the end of that dinner, Jack had outlined to me in very clear terms how I needed to become an active in NASBP. I was an outsider up until that dinner and Jack laid out a plan for me to be an active member of NASBP, which I have since come to find out he has done for dozens, if not hundreds of people, within NASBP.” “Jack is and will always be a statesman and a true leader of NASBP,” added Larry.

Jack is survived by his wife Pam Curtin and children, Jeremy Curtin and his wife Fiona of Ireland and Joel Curtin and his wife Talene of Nashua, New Hampshire. He is also survived by his grandchildren, Andrew, Michael, Mark and Paul Curtin, and his sister, Jane Curtin of Connecticut, and brother, Larry Curtin of Florida. Donations may be made in “Jack’s” memory to the Charity of one’s choice. Condolences for the family can be posted at the online guestbook by clicking here.

Jack Curtin (right) “in action” with NASBP Government Relations Committee Chair Larry McMahon (left).

 

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The coalition, which maintains a web site at www.consensusdocs.org, will publicly post the full text of its procedures and information about on-going and future document development efforts to solicit maximum participation in its efforts. By encouraging the maximum participation in its document development efforts, the coalition can more quickly realize its mission of “assuring that its documents serve the best interests of the construction project and the construction industry.” To access a copy of the ConsensusDOCS™ Procedures, please click here.

For more information about NASBP involvement with ConsensusDOCS, go to http://www.nasbp.org/consensusdocs

• Brierfield Insurance Company, Inc. (NAIC #10993), has been certified and added to the Treasury’s Listing of Approved Sureties effective 09/29/08.

For a complete listing of all states where these companies are licensed to transact surety business, please refer to the Circular 570 and its supplements at:

http://fms.treas.gov/c570/c570.html and
http://fms.treas.gov/c570/supplements.html

Surety Solutions, LLC
http://www.suretysolutionsllc.com
Salem, OR
Key Contact: Corban Enns

• Lead to bonded projects in the private sector
• Raise construction audiences’ awareness of the value and benefits of surety bonds
• Promote a positive image of the surety industry
• Fight adverse legislation affecting the construction and surety industries
• Help public officials, legislators, and their staffs better understand how surety bonds work
• Educate construction, architecture, engineering, and other students about surety bonding, better preparing them for careers in the construction industry
• Help small and emerging contractors obtain their first bond and cultivate them into more knowledgeable, sophisticated construction businesspeople
• Pique interest in careers in the surety industry
• Motivate your peers by demonstrating how easy and rewarding promoting surety bonds can be
• Go above and beyond the call of duty

Now is the time to prepare your nominations for SIO’s Awards for Excellence in Surety Bond Promotion and Tiger Trust. This year, entries will be accepted only via online nomination forms until February 13, 2009. While supporting documentation and photos may be submitted separately from the online nomination forms, they must be received by February 13, 2009, for entries to be considered complete.

For criteria, rules, and the online nomination forms to enter the Awards for Excellence in Surety Bond Promotion and Tiger Trust, contact Marc Ramsey, Manager, Information and Communications, at (202) 686-7463.

Now Available: 2008 ABC Surety Section & How to Obtain Surety Bonds

Two of SIO’s most popular products are now available to order or download online at www.sio.org.

SIO’s 2008 Surety Section was published in November in the Associated Builders and Contractors’ Construction Executive magazine. The special section features advice from today’s leading surety executives and covers legislation affecting construction, disciplined underwriting, contract review, business plans, the role of a construction CPA, claims, electronic bonding, subcontractor bonding, qualifying the surety, bonding for emerging contractors, and changes to the Small Business Administration’s Surety Bond Guarantee Program.

Meanwhile, SIO has revised its “How to Obtain Surety Bonds” brochure, which introduces surety bonds to contractors, covering everything from the qualities of a professional surety bond producer and the role of the underwriter to the prequalification process and what information sureties typically need in the underwriting process. The brochure, known years ago as “Your First Bond,” also explains financial statements, accounting methods, indemnity, costs, benefits, and the importance of the surety relationship.

To order or download either publication, visit www.sio.org and select “Free Brochures & CDs.”

SIO Publishes Magazine Article: ‘Know Your Bond Before You Sign’

SIO published an article, “Know Your Bond Before You Sign,” in the November issue of Construction Business Owner magazine.

The article was written by Mark H. McCallum, General Counsel and Director of Government Relations, NASBP, and Robert J. Duke, Director of Underwriting and Assistant Counsel, The Surety & Fidelity Association of America (SFAA).

For additional articles, vist SIO’s online Article Library.