How Do Bond Companies Work?
You might be asking what does a bond company do? This article will provide the basics. A bail bondsman is someone who is a collateral holder for a defendant. The agent posts the bail bond at the courthouse. If the defendant fails to show up, the bail bondsman is accountable for paying the court. If the accused does not show up, the agent has to pay back the court which means you'll need to provide collateral as well.
Bail Bondsman secures collateral from defendant
Bail bondsmen secure the security of the defendant in order to guarantee that the defendant is in court when ordered. The collateral can be used to secure anything, including an apartment or even jewelry. The collateral is a form of credit and the bonding firm hopes the defendant will show up to court. It can also be a large sum of cash. The collateral you require can range from several hundred dollars to several million dollars.
A bail bondman will usually secure a surety guarantee, which is usually secured by an insurer. Sometimes the property bond may also be used, but the insured has to complete forms for every person who is listed in the deed. Property bonds place a lien on a property. If the defendant fails to appear at court, the insurance firm can take over the property and sell it. If collateral is not able to be secured however, the indemnitor is able to utilize the collateral to assure the defendant's appearance in court.
Agent posts bond at courthouse
The process of posting bond is a legal agreement between the Court and the person posting the bond. The person posting bond must promise to attend court and the court must be notified of any bonds that are greater than an amount of a specific amount to the Internal Revenue Service (IRS). The agent for a bond company posts the bond at the courthouse on behalf of the defendant. The agent post the bail, and the defendant is required to accept the bail within 24 hours of the hearing.
The bail bond company will either deposit the bond at the location of the defendant, or at the Department of Corrections. Once the defendant is released, he is still legally required to show up in court whenever it is necessary. If the defendant does not show up for court or fails to adhere to the conditions of the bond the court could decide to suspend bail or take the collateral. Bonds can be issued as certified checks, cashier's checks or money orders.
Agent's fee for services
A broker for surety bonds typically has a cost that is in addition to the commission the bond company charges. The commission is usually included in the price you pay. However, sometimes, a broker may charge a separate cost. The fee is added to the commission and used for company operational costs. While the majority of commission funds are utilized to pay underwriters and salespeople however, the fee is utilized to cover operational costs. The fee is not exactly the same as the bond amount.
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