Bail bonds collateral refers to anything that holds good value. The bonds are usually kept for security by the defendant’s friends or family to ensure that the defendants will appear for the court hearing. You should be aware of the fact that if the defendant fails to appear at the hearing, the bail bond company is responsible for paying the full bail amount to the court. This is the reason why bail bond companies take up collateral security.
When you choose bail bonds you will have to hire a renowned bonding company who will post a bail. In return, no doubt the bail bond company asks for a fee, besides, it also asks for a bail bond collateral to ensure the presence of the defendant. Bail Bonds Key West will help you get a better idea of how things work. The collateral should be of such a value that it can commensurate the amount of bail.
Now the question arises, what can be the bail bond collateral? Find below some of the options that work best as bail bond collaterals.
Undoubtedly, automobiles are valuable, hence they prove to be one of the collaterals for bail bonds. Any type of vehicle can be used that include cars, yachts, tractors, or even tractors. However, before putting a vehicle for collateral, you will have to show the proof of its ownership. The possession of the vehicle will still be with you, and the bond company will only hold the title of the vehicle. If the court hearing is skiped by the defendant, the bond company will sell the vehicle off to recoup the losses.
2. Real Estate
It is one of the most common type of bail bond collateral. If you are the primary owner of a piece of land or a building, you can put that property up for collateral. There are a few conditions however to put real estate as collateral. The property should hold value, be in good state and should not be under the mortgage. Alternatively, your family members and friends can also offer their property as collateral if they wish to do so.
3. Credit Card
Credit cards are another option that you can use as bail bond collateral since it holds a good value and can be traded if the defendant fails to appear at the court. However, when you offer credit card as collateral, the credit limit of the card should be more than the bail amount. Also, the authorisation code is to be disclosed by the defendant so that the loses are recovered by bondsmen, of the conditions of the bail are voilated by the defendant.
Other pawnable items can also be accepted by the bail bond company when it comes to bail bond collaterals. The items include art pieces, jewellery, watches, precious metals, electronics, etc. Such items hold great value and therefore can be sold by the bondsmen if the defendant doesn’t appear at the court. However, bondsmen cannot ascertain the actual value of such valuables, therefore an authenticity certificate or appraisal may be asked for.
Valuables work differently as compared to the automobiles and realestate, and they take the possession of the valuables kept as collateral. Also, different companies have distinct policies for valuables. Hence, you should read the policy of your bail bond company before signing over the items.
5. Investments – Stocks and Bonds
Stocks and bonds held as investments by you can be offered by collaterals as well. The value of the investment should be more than the bail amount to make sure the bondsmen can sell them off amd recoup the amount. The investment will stay with the possession of the bail bonds company till the time your bail is not exonerated.
6. Irrevocable Letter Of Credit (ILOC)
The ILOC represnts a letter that is written by the bank to your bail bond company. The letter states clearly that all conditions kept by the bail bond company are gauranteed by the bank, and that they will pay the amount if the defendant doesn’t appear for the hearing. However, if you want to obtain the ILOC, you need to have enough balance in your bank account so that the bank can guarantee the amount.
If someone’s responsibility is being accepted by the bank, it needs to be ensured that the bail is not jumped by the defendant. Even if they do, they need to have enough bank balance so that the bank can recover the losses it had incurred.
If you own them, you can offer them as collateral too. Long guns, handguns, and several other firearms can be used to post as bail bond collateral to the bail bond company. You need to be the registered and legal owner of the firearm to keep it as collateral. Usually, when a weapon is being used as collateral against the bail bond it is stored securely by the third party until the bond expires.
If the collateral needs to ve non-cash to be kept against the bail bond, there are a few conditions that should be met. Such requirements, as already stated above, refers to the proof of ownership and another similar requirement. When keeping a valuable, automobile or property, you need to show the ownership proof and also the certificate of its value.
This way the bondsmen will be sure that they will not have to incur any kind of loss. Also, the value should be liquid, meaning the bondmen should be able to trade it to recoup the amount paid to the court.
The Bottom Line
Be sure as a defendant you appear at the court on all hearings so that your bail bond stays valid. Otherwise, you will have to pay a huge amount of compensation to the bail bond company along with their fees. They will keep collateral well in advance, and if the defendant fails to appear, the valuables become the property of the bail bond company. Besides cash, debit, and credit cards, there are other forms of payment that bail bond agents take.