3 Colo. Code Regs. § 702-7-1-2-5
Current through Register Vol. 47, No. 22, November 25, 2024
Section 3 CCR 702-7-1-2-5 - Qualification BondA. Qualification Bond Requirements for Cash-Bonding Agents 1. Cash-Bonding Agents previously licensed and currently registered with the Division who have posted qualification bonds that complied with Colorado Insurance Regulation 1-2-13, 3 CCR 702-1 must provide verification that the cash qualification bond satisfies the new statutory requirements of Article 23 of Title 10 and of this regulation as follows: a. Prior to the first renewal of a Cash-Bonding Agent's registration subsequent to the effective date of this Regulation, the Cash-Bonding Agent must produce the following: (1) The qualification bond form prescribed by the Division and attached hereto as Appendix A to this Regulation.(2) A copy of the bank account application, certificate of deposit, or commercial instrument or actual deposit of other security that evidences that the qualification bond is solely owned and in the legal name of the Cash-Bonding Agent, Division and Commissioner. The Division and Commissioner must also be authorized signatories on the bank account, certificate of deposit, commercial instrument, or other security with a right of survivorship as described in § 10-23-105(3), C.R.S.(3) A statement from the bank or other financial institution where the qualification bond is held that the bank or financial institution shall not release such funds unless upon prior written approval or order by the Division or Commissioner.(4) If the monies that fund the qualification bond consist of proceeds from a loan, promissory note or other financial arrangement, the terms of the loan, promissory note, or financial arrangement must be submitted to the Division for review of their compliance with § 10-23-105, C.R.S.b. A Cash-Bonding Agent who fails to alter the qualification bond in compliance with this regulation prior to the registration renewal date shall have their registration renewal denied on grounds that the Cash-Bonding Agent has not satisfied the requirements of registration. Once information is on file with the Division as satisfying the requirements of this regulation, the Cash-Bonding Agent shall not be required to submit information on future renewal applications related to the Qualification Bond unless specifically requested by the Division. After the Cash-Bonding Agent complies with § 10-23-105, C.R.S. and this Regulation, the Cash-Bonding Agent must notify the Division within twenty (20) days of any change to the Qualification Bond that results in non-compliance with § 10-23-105, C.R.S.c. No release of an existing qualification bond shall be granted by the Division, unless the procedures in Section 6 below are satisfied or upon a showing by the Cash-Bonding Agent that the monies would not be released but merely transferred into a bank account, certificate of deposit, commercial instrument, or other security that complies with this regulation, as approved by the Commissioner.B. Qualification Bond Requirements for Professional Cash-Bail Agents 1. Upon submission of the qualification bond to the Division at the initial application for licensure as a Professional Cash-Bail Agent, the following information must be provided: a. The qualification bond form that is attached hereto as Appendix A to this Regulation.b. A copy of the bank account application, certificate of deposit, commercial instrument, other actual deposit of other security, or a copy of the surety bond that evidences that the qualification bond is solely owned and in the name of the Professional Cash-Bail Agent and the Division. The Division and Commissioner must also be authorized signatories on the bank account, certificate of deposit, commercial instrument, or other security with a right of survivorship as described in § 10-23-105(3), C.R.S.c. A statement from the bank or other financial institution where the qualification bond is held that the bank or financial institution shall not release such funds unless upon prior written approval or order by the Division or Commissioner.d. If the monies that fund the qualification bond consist of proceeds from a loan, promissory note or other financial arrangement, the terms of the loan, promissory note, and financial arrangement must be submitted to the Division for review of their compliance with § 10-23-105(4), C.R.S.2. Professional Cash-Bail Agents previously licensed and currently registered with the Division who have posted qualification bonds that complied with Colorado Insurance Regulation 1-2-13, 3 CCR 702-1 must provide verification that the qualification bond satisfies the statutory requirements of Article 23 of Title 10 and of this Regulation as follows: a. At the first renewal of a Professional Cash-Bail Agent's license subsequent to the effective date of this Regulation, the Professional Cash-Bail Agent must produce the following: (1) The qualification bond form prescribed by the Division and attached hereto as Appendix A to this Regulation.(2) A copy of the bank account application, certificate of deposit, or commercial instrument or actual deposit of other security that evidences that the qualification bond is solely owned and in the legal name of the Professional Cash-Bail Agent and the Division. The Division and Commissioner must also be authorized signatories on the bank account, certificate of deposit, commercial instrument, or other security with a right of survivorship as described in § 10-23-105(3), C.R.S.(3) A statement from the bank or other financial institution where the qualification bond is held that the bank or financial institution shall not release such funds unless upon prior written approval or order by the Division or Commissioner.(4) If the monies that fund the qualification bond consist of proceeds from a loan, promissory note or other financial arrangement, the terms of the loan, promissory note, and financial arrangement must be submitted to the Division for review of their compliance with § 10-23-105, C.R.S.b. A Professional Cash-Bail Agent who fails to alter the qualification bond in compliance with this regulation prior to the registration renewal date shall have their registration renewal denied on grounds that the Professional Cash-Bail Agent has not satisfied the requirements of registration. Once information is on file with the Division as satisfying the requirements of this regulation, the Professional-Cash Bail Agent shall not be required to submit information related to the Qualification Bond on future renewal applications unless specifically requested by the Division. After the Professional Cash-Bail Agent complies with § 10-23-105, C.R.S. and this Regulation, the Professional Cash-Bail Agent must notify the Division within twenty (20) days of any change to the Qualification Bond that results in non-compliance with § 10-23-105, C.R.S.c. No release of an existing qualification bond shall be granted by the Division of Insurance, unless the procedures in Section 6 below are satisfied or upon a showing by the Professional Cash-Bail Agent that the monies would not be released but merely transferred into a bank account, certificate of deposit, commercial instrument, or other security that complies with this regulation, as approved by the Commissioner.44 CR 03, February 10, 2021, effective 3/15/2021