A receiver is simply someone who has been appointed by a court (in this case, one which is in Colorado) to manage the affairs of a business or company which is in dissolution or has otherwise become insolvent.
By statute, some duties of a Colorado court-appointed receiver include:
The amount of the Colorado receiver bond will be determined by the court where proceedings are taking place.
No specific amount is stated by statute. Colorado Revised Statutes Title 7 § 7-80-812 states that the receiver bond amount is “...in an amount [that] the court directs.”
You will be given a court order which states the amount the amount of surety bond required. It is a good idea to provide a copy of the court order to our agency, if you have it.
For any amount up to $100,000, our agency offers the Colorado receiver bond as an instant issue surety bond. There will be no credit check.
To purchase the receiver bond, we will also need the name of the obligee, that is, the entity (usually the court) that is requiring the receiver bond, along with their address.
After providing an application, and paying the premium, for amounts up to $100,000, the receiver surety bond is issued immediately. An emailed copy of the bond sent to you, and the original will follow by mail.
As an example, a $100,000 Colorado receiver bond will have a premium of just $500, annually.
Amounts above $100,000 will undergo a standard underwriter and credit check. You will still qualify for favorably priced premiums.
The thing to note about the premium for your receiver bond is that it renews annually for as long as the case in court; it is not a onetime payment.
Accordingly, you have the option to prepay your bond for 2 or 3 years, thereby offering a savings over year to year renewal of your bond premium (if you choose this option and the case ends beforehand, no refund will be granted).
Prepayment options are as follows (using a $100,000 amount):
The receiver bond is a financial guarantee on behalf of both the court and the parties in a receiver matter that you will act in a proper fiduciary capacity and only in the interest of the business, not your own.
The bond is not an insurance policy. As its principal, if there were a claim paid against your bond, you would indemnify the surety for all costs and fees involved.
AmeriPro Surety Bonds provides receiver surety bonds in Colorado and nationwide. Please call our agency today at:
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