A bail bondsman is someone, corporation, or individual who will act as surety for the defendant and pledge collateral or property as security for the appearance of the defendant in court. Bail bondsmen can offer both secured and unsecured bond offerings, with the secured bond being preferred by lenders as it is more reliable.
An unsecured bail bond is used when the defendant is a non-homeowner who is suspected of violating a criminal offense. A secured bail bond is only provided to property owners, while an unsecured bail bond can be used to protect people like students, employees, and employers from the loss of income due to the absence of their employers. Lenders and bail bondsmen do not require collateral to grant these types of bonds. Bond offers have many features, with the most important being the amount of money a defendant can afford to post.
When applying for a bond, a bail bondsman will need to meet with the defendant, review his background information, and give him a detailed description of his alleged crime. The defendant can choose to have his bail bond broker take custody of his bonds, or he can decide to sign over the responsibility to the bondsman for that particular time period.
Once the defendant has accepted a bond, the bail bondsman is required to deliver his bonds to the court with his signature. He will then notify the court of his completion of the requirements. If the defendant fails to appear at the scheduled time, the court can release the defendant without the necessity of posting the bond.
There are two types of bail bondsmen – the private bail bondsmen and the government bail bondsmen. Government bondsmen work for state and federal governments, while private bondsmen work for private organizations and corporations. Government bondsmen are required to follow the same regulations as private bondsmen and they have to provide financial records to the courts on each bond offered.
Private bondsmen are responsible for collecting all collateral. They will then pay the bail bondsman with the proceeds from the bail bondsman’s commission. However, government bondsmen will pay the bail bondsman directly with tax revenue or through the court system.
Bail Bondsmen are not only used in judicial proceedings. Many employers are known to use them as well. Companies that do not want to advertise their presence to the general public or have an established reputation of being high-risk employers, may opt to engage a bail bondsman to cover up the potential risk of hiring an untrustworthy applicant.
Many companies will pay a bond premium to the bail bondsmen, in exchange for having the bonds posted by the employer. In some cases, employees of the company might even hold a bond themselves for the benefit of the employer in case they are unable to attend their job.
The purpose of this is to provide protection to the company against lawsuits if the employee were to be sued or arrested. These are known as “collateral” bonds. A bail bondsman’s commission can be quite high, so these companies sometimes need to increase the bail bond premium because of this high demand for services.
The bond can also be used as a guarantee of the future repayment of the bondsman. Bail bond providers often require the bondsman to secure a large deposit to cover for lost wages, medical expenses, and other possible future losses. The deposits can be held in trust accounts and can only be withdrawn by the bonded funds manager.
Some companies also require the bondsman to guarantee an amount of money upfront. In exchange for having the bonds posted, the bondsman agrees to guarantee the bondsman will have the ability to pay back the deposit if the case does not go to trial. This type of guarantee usually requires a lien over the funds in the specified trust account. This ensures that if the person who holds the money does not repay the money, the funds can be claimed by the company.
Bail bondsmen are sometimes required to pay a fee for the services they provide. Usually, these are tax-deductible to the company that employs them.