Posts Tagged ‘surety bond’

Many people are still unaware of what bail bonds actually are. For all of those who didn’t know, these are used to bail an accused person out of custody, before the hearing of their trial. A sum of money is paid as the ‘bail’, if accepted by the court, and the accused is released from custody with the promise of showing up in court and presenting themselves in front of the jury for a hearing and a verdict about their case.

There are several kinds of bonds that are used for different situations. You will need to match your situation and your criminal record at times, to determine which kind is applicable to you. When it comes to the cost of the bail bonds themselves, you should know that there are several factors that affect the cost of them. The cost of a bail bond is never fixed, and is bound to vary. The factors that affect the cost include the state you live in; since states set different prices for bail bonds, while some completely disallow them altogether, the amount that is to be paid for the defendants bail, the use of a bail agent (since the agents fee will have to be included into the total cost of the bail at the end), the flight risk of the defendant (the higher the flight risk, the higher the bail), and whether you will use your credit card or take a loan to pay (which has interest payments), or choose to pay cash up front (which will have no additional cost).

As mentioned before, when you opt for an agent to help you with the bail out process, the agent will need to be paid a fee for the services he/she is offering you. The fee is not refundable and can cost about 15% of the face value of the bond. This percentage is subject to variation depending on the state that you reside in. The services that the bail bondsmen will offer you include the entire bail out process paperwork and procedure, and getting the defendant through the judicial process as well.

Besides that, sometimes you might incur some other costs that will add to the total cost of the bail bond and the bail out process. One example of such a cost might be the sheriff’s cost. This is estimated to be around $10. When using your bail bond you should be aware of the fact that the insurance company, which finances your bail, will charge a fee as well and that might be anywhere between 10%-15% of the face value of the bond. If the bail bond is funded through any other means, the insurance cost will not have to be paid in that case.

There are times when collateral must be secured against a bail. If the accused fails to present themselves before the court on the date of their hearing, there is a risk of losing the collateral that has been secured, or the bail amount paid for the bail out. Apart from this cost, the bail bondsman will also charge you a fee for tracking down the defendant who fled. If the accused agrees to comply, you will be returned your collateral or bail money.

If you want to find out more about bail bonds in Florida, you should take a look at 2nd 2 None bail bonds. This website will have all the information you need to know about bail bonds. To find out more, visit http://www.2nd2nonebailbonds.com/.

 

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surety bond is a contract among at least three parties:

  • The obligee – the party who is the recipient of an obligation,
  • The principal – the primary party who will be performing the contractual obligation,
  • The surety – who assures the obligee that the principal can perform the task

European surety bonds are issued by banks and are called “Bank Guarantees” in English and “Caution” in French. They pay out cash to the limit of guarantee in the event of the default of the Principal to uphold his obligations to the Obligee, without reference by the Obligee to the Principal and against the Obligee’s sole verified statement of claim to the bank.

Through a surety bond, the surety agrees to uphold — for the benefit of the obligee — the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal and guarantee performance and completion per the terms of the agreement.

The principal will pay a premium (usually annually) in exchange for the bonding company’s financial strength to extend surety credit. In the event of a claim, the surety will investigate it. If it turns out to be a valid claim, the surety will pay it and then turn to the principal for reimbursement of the amount paid on the claim and any legal fees incurred.

If the principal defaults and the surety turns out to be insolvent, the purpose of the bond is rendered nugatory. Thus, the surety on a bond is usually an insurance company whose solvency is verified by private audit, governmental regulation, or both.

A key term in nearly every surety bond is the penal sum. This is a specified amount of money which is the maximum amount that the surety will be required to pay in the event of the principal’s default. This allows the surety to assess the risk involved in giving the bond; the premium charged is determined accordingly.

Surety bonds are also used in other situations, for example, to secure the proper performance of fiduciary duties by persons in positions of private or public trust.

Annual US surety bond premiums are approximately $3.5 billion. State insurance commissioners are responsible for regulating corporate surety activities within their jurisdictions. The commissioners also license and regulate brokers or agents who sell the bonds.