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Do you need to comply with the Minnesota Bullion Coin Dealer Law?


Step-by-Step Instructions:


Step One


You must first determine if you are a Bullion Coin Dealer. The first step to make that determination is to answer the following questions:

  1. Are you a person who buys, sells, or markets bullion coins or investments in bullion coins to consumers?

    AND

  2. a. Are you incorporated, registered, domiciled, or otherwise located in Minnesota?

    OR 

          b. Do you conduct business with a consumer domiciled, residing, or otherwise located in Minnesota?

If you answered NO to question 1 . you are not a Bullion Coin Dealer and you are not required to comply with the law. You may stop here. 

If you answered YES to question 1 . but NO to both questions 2.a. and 2.b. you are not a Bullion Coin Dealer and you are not required to comply with the law.  You may stop here. 

If you a n swered YES to question 1. and YES to either question 2.a. or 2.b. or YES to both questions 2.a. and 2.b., you may be a Bullion Coin Dealer. You need to continue to Step Two. 

Step Two


Do any of the following statements describe you?

  1. You are a person who engages only in wholesale bullion coin transactions with bullion coin dealers who sell at retail and are properly registered under the law.

  2. You are a person who engages only in transactions at occasional garage or yard sales held at the seller’s residence, farm auctions at the seller’s residence, or estate sales held at the decedent’s residence.

  3. You are a person who is properly registered pursuant to Minnesota Chapter 80A, or the federal Securities Exchange Act of 1934 and rules promulgated there under as a securities broker dealer or broker dealer agent.

  4. You are an auctioneer who auctions bullion coins at auction on behalf of an owner, and you, as the auctioneer, do not take title or ownership of the bullion coins.

  5. You are an operator of an Internet web-site that allows users to offer for sale bullion coins through that web-site, and 1) you do not set the price, 2) you are not the seller of record, and 3) you do not take possession of any bullion coins to be offered for sale through that website.

  6. You are a person who engages only in transactions at occasional trade shows where the consumer is present and the transaction is made at the trade show. 

(For purpose of this exemption, the transaction needs to be fully completed at the trade show. The person purchasing the bullion coin will need to take physical possession of the bullion coin and the person selling the bullion coin will need to take possession of the funds being paid for the coin, by cash, check or credit card receipt while both persons are present at the trade show.)

  1. You are a federally or state-chartered bank, bank and trust, savings bank, savings association, or credit union or any operating subsidiary of them.

If any of the above statements described you then you are not a Bullion Coin Dealer and you are not required to comply with the law. You may stop here. 

If none of the above statements described you then you are a Bullion Coin Dealer and you need to go to Step Three.

Step Three


If you were instructed to go to Step Three, then you are a Bullion Coin Dealer and you and your coin dealer representatives must comply with the law’s requirements as follows:

On August 1, 2013:

You must be in compliance with the law’s Sales Practices/Prohibited Conduct requirements:

If you have engaged in one or more bullion coin transactions with consumers that exceed $5,000 in the aggregate during the 12 month period prior to August 1, 2013. A transaction dollar amount is the transaction sale price.

On July 1, 2014:

You must be in compliance with the law’s Sales Practices/Prohibited Conduct, Screening, Surety Bond and Registration requirements:

If you have engaged in one or more bullion coin transactions with consumers that exceed $5,000 in the aggregate during the 12 month period prior to July 1, 2014. A transaction dollar amount is the transaction sale price. 

After July 1, 2014:

Even if you were not required to be in compliance with the law’s requirements on July 1, 2014 because your bullion coin transactions with consumers did not exceed $5000 in aggregate during the 12 month period prior to July 1, 2014, you must continue to track the amount of your bullion coin transactions with consumers. 

You must continue to track the amount of your bullion coin transactions with consumers because if at any time during any 12 month period after July 1, 2014 your bullion coin transactions with consumers exceed $5,000 in aggregate you must be in compliance with the law’s Sales Practices/Prohibited Conduct, Screening, Surety Bond and Registration requirements within 30 days. 

Renewing your Registration 


Once you have registered yourself and your coin dealer representatives, you must renew your registration and the registration of your coin dealer representatives each year by July 1 and also continue to comply with the law’s Sales Practices/Prohibited Conduct, Surety Bond and Screening requirements, regardless of the aggregate amount of your transactions, unless you cease to be a Bullion Coin Dealer. (See Step 1 and Step 2 to determine whether you are a Bullion Coin Dealer.)