Business, Legal & Accounting Glossary
The money posted by a “bondsman” for a defendant who cannot afford his bail. The defendant pays a certain portion, usually 10%. If the defendant fails to appear for a court hearing, the judge can issue a warrant for his arrest and threaten to “forfeit,” or keep, the money if the defendant doesn’t appear soon. Usually, the bondsman will look for the defendant and bring him back, forcefully if necessary, in order to avoid losing the bail money.
n. a bond provided by an insurance company through a bail bondsman acting as agent for the company, to secure the release from jail of an accused defendant pending trial. Usually there is a charge of 10 percent of the amount of the bond (e.g. $100 for a $1,000 bond) and often the defendant must put up some collateral like a second deed of trust or mortgage on one’s house. Upon acquittal, conviction, or other conclusion of the case, the bail bond is “exonerated” and returned to the insurance company. If the person who has been bailed out disappears and does not appear in court, the bond funds will be forfeited unless the defendant is found and returned.
A bail bond is a contract between the accused and the bail bondsman. The bail bondsman pays the bail for the accused and the accused is then released from jail. The defendant pays a fee to the bail bondsman which the bondsman keeps after the accused is released from jail. If the accused fails to appear in court the bail bondsman losses the bond.
A bail bond is not a loan. Keep in mind the bail bondsman is charging a percentage of the bail amount, generally 10%. This amount is not returned to the client if the defendant agrees to appear in court. If a defendant chooses to use a bail bondsman they can get access to a line of credit, the defendant is generally released within a few hours of presenting the bond to the court and the defendant or their family will not have to post the entire bail in cash.
Because bail bondsmen are liable for the bail bond amount and will lose the bond if the accused does not appear in court it is not unusual for them to hire bounty hunters to track down defendants who have left town or who fail to appear in court. If a bounty hunter finds the defendant they may be paid anywhere from 10 per cent to 20 per cent of the total bail bond. This means an experienced bounty hunter who works 80 to 150 cases a year can earn anywhere from $50,000 to $80,000 annually.
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This glossary post was last updated: 26th April, 2020 | 2 Views.