This bond is for anyone applying to be licensed as an Auctioneer in the city or county of Denver, Colorado, and may otherwise be referred to as an Auction Bond. Like all surety bonds, this is a three-way agreement: between you (the Principal), Denver (the Obligee), and the surety company backing your bond. The bond acts as a protective measure for the city and county of Denver – and its general public – in the event of any claims, damages, liabilities, losses, suits, actions, or judgments against the Principal. Any of the aforementioned issues may arise from any violations of Chapter 9 of the Revised Municipal Code of the City and County of Denver. To learn about all regulations pertaining to your Auctioneer’s License Bond, refer to the Code of Ordinances HERE.
If you are filing for an Auctioneer’s License, you must file this bond with your Obligee – The Denver Department of Excise and Licenses – before you will be approved. This bond is a prerequisite for your application. Upon receipt of your bond, use this form to submit your bond to the Department of Excise and Licenses.
If you violate any of the regulations laid out in Chapter 9 of the Revised Municipal Code, you are liable to have a claim filed against your bond. A surety bond does not function like insurance, meaning that you will be responsible for the full dollar amount paid out by your surety company to any damaged party. A surety bond acts as a signal of trust, and an additional layer of protection, from anyone who is financially involved in your auction in the event of fraud or misrepresentation, and the city or county of Denver holds no liability. Your surety company agrees to back you with this bond with the trust that you understand and agree to follow regulations.
If you feel that a claim against your surety bond has been filed wrongfully, it is important that you speak with your surety agent immediately to determine the best course of action. In the event of false claims, your surety agent will complete an investigation of the claim, and if it is determined to be false, will have no effect on your licensure or business operations. In the event that the claim is found to be legitimate, your surety may revoke your bond. Because this bond is a requirement for an Auctioneer’s License in Denver, your license will be considered invalid until you are able to replace your bond.
It is important to understand that any claims against your bond are damaging for your current business, your financial wellbeing, and the ease with which you may apply for additional bonds in the future. Be certain to operate within the legal guidelines set forth, and respond to any potential miscommunication with customers as quickly as possible.