Understanding The Fundamentals Of Collateral And Bail Bond Co-Signers
Collateral is a key component of any bail bond agreement, as the collateral provided offers the financial security for the bail risk extended by the bond agent. Whether you have recently been asked to co-sign for someone's bail or you're just concerned about the potential liabilities and responsibility, you should understand the fundamentals of collateral for your bond agreement. Here are some of the things that you need to know.
What is bail bond collateral?
Collateral used in a bail bond contract serves as a commitment to the financial responsibility for the defendant's full bail amount. When you offer any collateral for a bail bond agreement, you agree to let the bond agent take that collateral if you are unable to pay the full bail amount if the defendant breaches their bond agreement, skips court, or runs.
What can you use for bail bond collateral?
Depending on the value of the bond, you have many options for collateral. Some bond agents are more flexible than others about what they accept as well. You can use real estate that you own outright, vehicles with no lien on them, jewelry, investment certificates, or anything else of value that fulfills the bond amount. The agent you're working with to secure the bail bond can help you better understand the best options in your situation.
What are your responsibilities when you post bail bond collateral?
Co-signing a bail bond and posting collateral to secure it makes you a responsible party. You hold financial responsibility for the defendant and are expected to ensure that the defendant follows the conditions of their bail agreement. This includes not only the stipulations issued by the court but the requirements of the bail bond contract as well. You should only agree to co-sign a bond when you trust the defendant in question. You risk losing the collateral you posted if they breach their agreement.
What about getting your collateral back?
When the defendant follows through with their requirements, completes their court case and everything is finalized, you may be able to get your collateral back from the bond agent. Make sure you understand the terms of the bond agreement so that you know when your collateral is released to you.
Understanding the basics of collateral and co-signing bail bonds is important before you make that commitment. These are just a few of the many things that you need to consider along the way. For more information about bail bonds, reach out to a local service.