(1) The insurance
producer who posts a bail bond with the court on behalf of a defendant shall ensure
that the following documents comply with the following provisions:
(a) An indemnity agreement must:
(I) Be in writing;
(II) Be signed by the producer;
(III) Be signed by the defendant or indemnitor;
(IV) Set forth the amount of bail set in the case, the name of the defendant
released on the bail bond, the court case number if available, the court where the
bond is executed, the premium charged, the amount and type of collateral held by
the insurance producer, and the conditions under which the collateral is returned;
(V) Contain documentation that the indemnitor has received copies of signed
and dated disclosure forms; and
(VI) If the defendant or indemnitor is illiterate or does not read English,
contain a note on the indemnity agreement that the producer or a third party has
read or translated the agreement to the defendant or indemnitor and be affixed
with an affidavit to the indemnity agreement attesting that the document was
translated;
(b) A promissory note must be:
(I) In writing;
(II) Signed by the producer; and
(III) Signed by the defendant or indemnitor;
(c) A collateral receipt must:
(I) Be dated;
(II) Be in writing;
(III) Be signed by the producer;
(IV) Be signed by the defendant or indemnitor;
(V) Be prenumbered;
(VI) Contain a full description of the collateral, including the condition of the
collateral at the time it is taken into custody; and
(VII) Set forth the amount of bail set in the case, the name of the defendant
released on the bail bond, the court case number, the court where the bond is
executed, the premium charged, the amount and type of collateral held by the
insurance producer, and the conditions under which the collateral is returned;
(d) A bail bond revocation request must be:
(I) Dated;
(II) In writing;
(III) Signed by the producer; and
(IV) Signed by the defendant or indemnitor.
(2) (a) Before accepting consideration, the insurance producer who writes
bail bonds shall commit to writing, sign, date, and obtain the defendant's or
indemnitor's signature on an arrangement for the payment of all or part of the
premium, commission, or fee, including the payment schedule. The signature of the
insurance producer who writes bail bonds is not an obligation to pay any debt owed
to a lender. To be enforceable, interest and financial charges on any unpaid
premium must comply with the Uniform Consumer Credit Code, articles 1 to 9 of
title 5, C.R.S.
(b) Before accepting consideration or taking collateral, the insurance
producer who writes bail bonds shall provide, in a form prescribed by the
commissioner, a disclosure statement to each defendant and indemnitor detailing
the terms of the bail bond.
(3) (a) An insurance producer who posts a bail bond with the court and who
accepts consideration for a bail bond or undertaking shall, for each payment
received, provide to the person tendering payment a prenumbered, signed receipt
containing the following:
(I) The date;
(II) The defendant's name;
(III) A description of the consideration and amount of money received;
(IV) The purpose for which it was received;
(V) The number of any power-of-attorney form attached to the bail bond;
(VI) The penal sum of the bail bond;
(VII) The name of the person tendering payment; and
(VIII) The terms under which the money or other consideration is released.
(b) The insurance producer who posts a bail bond with the court shall provide
the person tendering payment a signed and dated receipt for each premium
payment listing the amount paid.
(3.5) (a) If the bond is to be secured by real estate, the bail bonding agent
shall provide the property owner with a written disclosure statement in the
following form at the time an initial application is filed:
Disclosure of lien against real property
Do not sign this document until you read and understand it This bail bond will be
secured by real property you own or in which you have an interest. Failure to pay
the bail bond premiums when due or the defendant's failure to comply with the
conditions of bail could result in the loss of your property
(b) The disclosure required in paragraph (a) of this subsection (3.5) shall be
printed in fourteen-point, bold-faced type either:
(I) On a separate and specific document attached to or accompanying the
application; or
(II) In a clear and conspicuous statement on the face of the application.
(c) Before a property owner executes any instrument creating a lien against
real property, the bail bonding agent shall provide the property owner with a
completed copy of the instrument creating the lien against real property and the
disclosure statement described in paragraph (a) of this subsection (3.5). If a bail
bonding agent fails to comply fully with the requirements of paragraphs (a) and (b)
of this subsection (3.5) and this paragraph (c), any instrument creating a lien
against real property shall be voidable.
(d) The bonding agent shall deliver to the property owner a fully executed
and notarized reconveyance of title, a certificate of discharge, or a full release of
any lien against real property that secures performance of the conditions of a bail
bond within thirty-five days after receiving notice that the time for appealing an
order that exonerated the bail bond has expired. The bonding agent shall also
deliver to the property owner the original canceled note as evidence that the
indebtedness secured by any lien instrument has been paid or that the purposes of
said instrument have been fully satisfied and the original deed of trust, security
agreement, or other instrument that secured the bail bond obligation. If a timely
notice of appeal is filed, the thirty-five-day period shall begin on the day the
appellate court's affirmation of the order becomes final. If the bonding agent fails
to comply with the requirements of this paragraph (d), the property owner may
petition the district court to issue an order directing the clerk of such court to
execute a full reconveyance of title, a certificate of discharge, or a full release of
any lien against real property created to secure performance of the conditions of
the bail bond. The petition shall be verified and shall allege facts showing that the
bonding agent has failed to comply with the provisions of this paragraph (d).
(e) Any bail bonding agent who violates this subsection (3.5) is liable to the
property owner for all damages that may be sustained by reason of the violation,
plus statutory damages in the sum of three hundred dollars. The property owner
shall be entitled to recover court costs and reasonable attorney fees, as determined
by the court, upon prevailing in any action brought to enforce the provisions of this
subsection (3.5).
(4) The insurance producer shall prepare or execute separate agreements
and documents for each time the producer posts a bail bond with the court. The
producer shall give the indemnitor a copy of each document executed in the course
of the bail bond transaction.
(5) For three years after the date of discharge of a bail bond and return of
any collateral or proof of notice to the defendant or indemnitor that any promissory
note has been satisfied, the insurance producer who posts the bail bond with the
court shall keep at the producer's business copies of each receipt, indemnity
agreement, bond, disclosure statement, payment plan, bond revocation request, or
other document or information related to the bond transaction the commissioner
reasonably requires by rule and shall make these documents available for
inspection by the commissioner or the commissioner's authorized representative
during normal business hours.
(6) The indemnitor may be the defendant.
(7) The commissioner may examine the business practices, books, and
records of any insurance producer as often as the commissioner deems appropriate.