Introduced in January of 2009, is a new Colorado bill pertaining to exchange facilitators. The new bill which is titled HB 1254 states a list of activities and actions that are deceiving trade practices for any individual that is licensed as an exchange facilitator. Among the misleading trade practices are failures to sustain sufficient financial assurance, errors and omissions insurance or deposits. This requires the exchange facilitator to obtain a $1 million fidelity bond and a $250,000 errors & omissions policy; what is also adequate is a deposit cash or letters of credit (LOC) in an amount equivalent to the two insurance policies or deposit all exchange funds in an escrow account that demands the signature of the exchange facilitator and the taxpayer to extract any funds. HB 1254 was enacted on 04/16/2009.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.