Updated as of June 9, 2016: Due to the passage of Senate Bill 3175 on May 17, 2016, bullion dealers are only required to obtain surety bonds in the event that they conduct transactions exceeding $25,000. The amount of the bond still varies depending upon the total transaction amount, so it is important for the principal (bullion dealer) to verify with the Minnesota Department of Commerce that they are obtaining a bond in an adequate amount.
Last year, the Minnesota State Legislature created a new surety bond requirement for professionals in the business of dealing bullion coins.
According to the official language of the law , a bullion coin is “any coin containing more than one percent by weight of silver, gold, platinum, or other precious metal.” A bullion dealer is “any person who buys, sells, solicits, or markets bullion coins or investments in bullion coins to consumers and is either incorporated, registered, domiciled, or otherwise located in this state, or who does business with a consumer domiciled, residing, or otherwise located in this state.”
The Minnesota Department of Commerce will regulate and oversee the bullion coin industry and its surety bond requirement.
Bullion dealers who need to purchase a surety bond in order to continue doing business in Minnesota can expect to pay different prices for their bonds, as the amount of required surety bond coverage for each applicant will vary based on the total volume of their transactions. There are five levels of bullion coin dealer surety bonds:
- Bullion coin dealers whose total transactions do not exceed $200,000 can expect to post a $25,000 surety bond
- Bullion coin dealers whose total transactions range from $200,000.01 – $500,000 can expect to post a $50,000 surety bond
- Bullion coin dealers whose total transactions range from $500,000.01 – $1,000,000 can expect to post a $100,000 surety bond
- Bullion coin dealers whose total transactions range from $1,000,000.01 – $2,000,000 can expect to post a $150,000 surety bond
- Bullion coin dealers whose total transactions exceed $2,000,000.01 can expect to post a $200,000 surety bond
Three separate bond forms exist for different types of businesses: Corporation/LLC, Partnership, and Individual Proprietorship.
For more information about this new bond requirement and bonds in Minnesota or any other state, contact SuretyBonds.com online 24/7 or by phone at 1 (800) 308-4358 Monday through Friday between 8 a.m. and 7 p.m. CST. You’ll be connected with an expert surety specialist who will walk you through each step of the fast, easy and accurate bonding process.