(1) Each cash-bonding agent shall post a cash qualification bond of fifty thousand dollars with the division. The bond must be to the people of the state of Colorado in favor of any court in this state, whether municipal, county, district, or other court, and to the division for the purposes of this section. In the event of a forfeiture of a cash-bonding agent's qualification bond, the division has priority over all other claimants. To comply with this subsection (1), the bond must be conditioned upon full and prompt payment into the court ordering the bond forfeited. Cash-bonding agents shall not issue bonds except in accordance with section 16-4-104 (1)(c)(III), C.R.S. In the event of a qualification bond forfeiture, a cash-bonding agent shall not write new bail bonds until the qualification bond is restored to fifty thousand dollars.
Each professional cash-bail agent shall post a cash qualification bond of no less thanfifty thousand dollars with the division. The bond shall be to the people of the state of Colorado in favor of any court in this state, whether municipal, county, district, or other court, and to the division for the purposes of this section. A professional cash-bail agent shall not furnish a single bail greater than twice the amount of the bond posted with the division. In the event of a forfeiture of a professional cash-bail agent's qualification bond, the division has priority over all other claimants to the bond. To comply with this subsection (2), the bond must be conditioned upon full and prompt payment into the court ordering the bond forfeited. Professional cash-bail agents shall not issue bonds except in accordance with section 16-4-104 (1)(c)(III), C.R.S. In the event of a qualification bond forfeiture, a professional cash-bail agent shall not write new bail bonds until the qualification bond is restored to at least fifty thousand dollars.
To comply with this section, the division must be designated as an authorized signatory with right of survivorship on any bank account, certificate of deposit, commercial instrument, or security that funds the bond required by this section. The right of survivorship terminates on the later of the date on which any liability covered by the bond is satisfied or released or the third anniversary of the death of the professional cash-bail agent or cash-bonding agent. When the right of survivorship terminates, the division shall release the bond to the agent's estate or, if the estate has been settled, to the heirs of the agent.
To qualify under this section:
A bank account, certificate of deposit, commercial instrument, or security must be inthe legal name of the professional cash-bail or cash-bonding agent and not a trade name or other business name;
The qualification bond must consist of assets that are solely owned and in the nameof the professional cash-bail or cash-bonding agent and be immediately available for liquidation by the commissioner or the division;
The qualification bond must be worth fifty thousand dollars net of any penalty forwithdrawal or liquidation;
The professional cash-bail or cash-bonding agent may receive interest thereon, unlessthe principal amount of the qualification bond falls below the required fifty thousand dollars, if the qualification bond is an interest-bearing instrument;
The terms of the loan, promissory note, and financial arrangement must be submittedto the division if the qualification bond is funded by the proceeds from a loan, promissory note, or other financial arrangement; and
The agreement must terminate at a fixed time and any rate of return is an annualpercentage rate and not tied to any premium or collateral or any other direct function from which an agent makes a profit if the qualification bond consists of moneys from a loan, promissory note, or other financial arrangement.
(5) Upon request by the person who posted the qualification bond to be registered under this article, the commissioner shall release the bond if the person has not been registered or licensed to write a bond as a professional cash-bail agent or cash-bonding agent within the last seven years. Neither the commissioner nor the division are liable to any other party for releasing the qualification bond in accordance with this section.
Source: L. 2012: Entire article added with relocations, (HB 12-1266), ch. 280, p. 1515, §
41, effective July 1. L. 2013: (1) and (2) amended, (HB 13-1236), ch. 202, p. 841, § 8, effective May 11.
Editor's note: Subsection (1) is similar to former § 12-7-103 (3)(a), and subsection (2) is similar to former § 12-7-103 (8)(a), as they existed prior to 2012.