Everything You Need To Know About Surety Bonds
Surety Bond also known as the Bail Bond in layman term is a contract issued and signed by a Surety Company co-signed by the accused or the defender addressed to the court guaranteeing the defender’s show up on each and every hearing session held by the court. Failing to which, the Surety Company will be held responsible and called to pay the liability to the court. Thus, there is always a risk of liability in case the defender does not show up in the court after the bail. Therefore, on availing surety bond, the defender has to pledge his/her collateral equal in value to the 90% of the total bail amount. The rest 10% serves as the fee for the bondman. Both collateral and the surety bond play a very important part in getting bail. In case of incomplete collateral submission, the surety firms reserves all rights to claim collateral of the defender’s family members, friends and relatives. Below are the aftermaths of a broken bond.
Consequences of a Broken Surety Bond
Surety bonds bear guarantee that the defender will attend all of his/her court hearings. If the defender does not comply with the court’s order or the bond, the bond gets broken. As the bond gets broken, the surety firm is held liable and has to clear the liability that is the 90% of the bail amount. Within a given time, the surety firm needs to clear the liability. To clear the liability, the surety firm hands over the defender’s collateral. The bond gets dissolved once all the rules are abided by not breaking the bond. And on court’s judgment, the 90% of the collateral can be claimed from the Surety Company. The rest 10% is kept as earnings by the firm.