C.R.S. Section 5-19-213
Bond required

(a)

Except as otherwise provided in section 5-19-214, a provider that is required to be registered under this part 2 shall file a surety bond with the administrator, which shall:

(1)

Be in effect during the period of registration and for two years after the provider ceases providing debt-management services to individuals in this state; and

(2)

Run to this state for the benefit of this state and of individuals who reside in this state when they agree to receive debt-management services from the provider, as their interests may appear.

(b)

A surety bond filed pursuant to subsection (a) of this section shall:

(1)

Be in the amount of fifty thousand dollars or other larger or smaller amount that the administrator determines is warranted by the financial condition and business experience of the provider, the history of the provider in performing debt-management services, the risk to individuals, and any other factor the administrator considers appropriate;

(2)

Be issued by a bonding, surety, or insurance company authorized to do business in this state and rated at least A by a nationally recognized rating organization; and

(3)

Have payment conditioned upon noncompliance of the provider or its agent with this part 2.

(c)

If the principal amount of a surety bond is reduced by payment of a claim or a judgment, the provider and the surety shall notify the administrator immediately and, within thirty days after notice by the administrator, the provider shall file a new or additional surety bond in an amount set by the administrator. The amount of the new or additional bond shall be at least the amount of the bond immediately before payment of the claim or judgment. If for any reason a surety terminates a bond, the surety shall provide written notice of the termination to the administrator immediately, and the provider shall immediately file a new surety bond in the amount of fifty thousand dollars or other amount determined pursuant to subsection (b) of this section.

(d)

The administrator or an individual may obtain satisfaction out of the surety bond procured pursuant to this section if:

(1)

The administrator assesses expenses under section 5-19-232 (b)(1), issues a final order under section 5-19-233 (a)(2), or recovers a final judgment under section 5-19-233 (a)(4), (a)(5), or (d); or

(2)

An individual recovers a final judgment pursuant to section 5-19-235 (a), (b), (c)(1), (c)(2), or (c)(4).

(e)

If claims against a surety bond exceed or are reasonably expected to exceed the amount of the bond, the administrator, on the initiative of the administrator or on petition of the surety, shall, unless the proceeds are adequate to pay all costs, judgments, and claims, distribute the proceeds in the following order:

(1)

To satisfaction of a final order or judgment under section 5-19-233 (a)(2), (a)(4), (a)(5), or (d);

(2)

To final judgments recovered by individuals pursuant to section 5-19-235 (a), (b), (c)(1), (c)(2), or (c)(4), pro rata;

(3)

To claims of individuals established to the satisfaction of the administrator, pro rata; and

(4)

If a final order or judgment is issued under section 5-19-233 (a), to the expenses charged pursuant to section 5-19-232 (b)(1).

Source: Section 5-19-213 — Bond required, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-05.­pdf (accessed Oct. 20, 2023).

5‑19‑101
Short title 5‑19‑102
Legislative declaration 5‑19‑103
Definitions 5‑19‑104
Prohibited acts 5‑19‑105
Written disclosure required 5‑19‑106
Content of written disclosure 5‑19‑107
Written contracts required 5‑19‑108
Waivers and exemptions 5‑19‑109
Criminal penalties and injunctive relief 5‑19‑110
Powers of administrator of the uniform consumer credit code and district attorney - subpoenas - hearings 5‑19‑111
Damages 5‑19‑112
Aiding or assisting violation 5‑19‑113
Remedies cumulative 5‑19‑114
Relation between parts of article 5‑19‑201
Short title 5‑19‑202
Definitions 5‑19‑203
Exempt agreements and persons 5‑19‑204
Registration required 5‑19‑205
Application for registration - form, fee, and accompanying documents - repeal 5‑19‑206
Application for registration - required information 5‑19‑206.5
Name-based judicial record check 5‑19‑206.7
Remote work authorized - definition 5‑19‑207
Application for registration - obligation to update information 5‑19‑208
Application for registration - public information 5‑19‑209
Certificate of registration - issuance or denial 5‑19‑210
Certificate of registration - timing 5‑19‑211
Renewal of registration 5‑19‑212
Registration in another state 5‑19‑213
Bond required 5‑19‑214
Bond required - substitute 5‑19‑215
Good faith requirement 5‑19‑216
Customer service 5‑19‑217
Prerequisites for providing debt-management services 5‑19‑218
Communication by electronic or other means - definitions 5‑19‑219
Form and contents of agreement 5‑19‑220
Cancellation of agreement - waiver 5‑19‑221
Required language 5‑19‑222
Trust account 5‑19‑223
Fees and other charges 5‑19‑224
Voluntary contributions 5‑19‑225
Voidable agreements 5‑19‑226
Termination of agreements 5‑19‑227
Periodic reports - retention of records 5‑19‑228
Prohibited acts and practices 5‑19‑229
Notice of litigation 5‑19‑230
Advertising 5‑19‑231
Liability for the conduct of other persons 5‑19‑232
Powers of administrator - rules 5‑19‑233
Administrative and legal remedies 5‑19‑234
Suspension, revocation, or nonrenewal of registration - definitions 5‑19‑235
Private enforcement 5‑19‑236
Violation of unfair or deceptive practices statute 5‑19‑237
Statute of limitations 5‑19‑238
Uniformity of application and construction 5‑19‑239
Relation to federal “Electronic Signatures in Global and National Commerce Act” 5‑19‑240
Transitional provisions - application to existing transactions 5‑19‑241
Severability 5‑19‑242
Repeal of part
Green check means up to date. Up to date

Current through Fall 2024

§ 5-19-213’s source at colorado​.gov