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Understanding Collateral in a Bail Bond Agreement - Lee Calhoun Bail Bonds Agency Gainesville Florida

Understanding Collateral in a Bail Bond Agreement

Bail is an agreement between the court and the defendant in which the court agrees to release the defendant on the condition that they’ll attend all the court sessions. However, the defendant can sometimes not afford the bail amount in which case they seek help of a bail bond company to sign a bail bond.

The company agrees to pay bail on your behalf on the condition that you won’t skip any court hearings. The bond company takes the responsibility of guaranteeing your appearance in court, which makes it liable to pay the full bail if the defendant fails to attend even one hearing. To minimize your flight risk, the company charges a nonrefundable 10% fee plus collateral to cover the cost of the bail.

Collateral refers to an asset that serves as security until the trial is over, after which the collateral is returned. Here are some examples of items that can be used as collateral:

Property

This is the most common type of collateral. The company will assess the value of your property before accepting it. You’ll also be required to give the receipt of a bank or a financial institution that lend you money for the property.

Promissory Notes

Promissory notes are a form of liability that can be used to collect money from creditors in case the client misses trial. Bond companies go for it when they’re dealing with unpredictable clients.

Jewelry

Many people have expensive and valuable jewelry that has significant cash value. The jewelry contains valuable metals or precious stones like diamond or emerald that can be used to recover the bail money. The bond company will first evaluate the present market value of the jewelry, and then determine its worth as collateral.

Credit Cards

Another example of collateral is credit cards. However, to use credit cards as collateral, you’ll have to give the authorization code to the bond agent. So in case you fail to attend a court session, the bond company can recover its loss from your card.

Pawnable Items

This category of items includes anything that can be used to get a loan from a pawn shop—for example, computers, laptops, TVs, etc. The value of these items as collateral will be determined depending on their condition—better the condition, higher the value.

There are many important details pertaining to collateral and bail bonds that you should keep in mind. As mentioned before, a variety of items can be used as collateral to secure a bail bond. And after the trial ends and you’ve attended all the court hearings as agreed, you’re eligible to get back your offered collateral, irrespective of the trial’s outcome.

Hiring a reliable bail bond company is crucial to securing your bail. Lee Calhoun Bail Bonds is an affordable bail bonds company in Gainesville, FL has a team of experienced professionals who’re ready to extend their services 24/7. So, what’re you waiting for? Find our nearest location and visit us today! You can also call us at 1+(352) 379-9100.

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