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Lesson 9

lesson-9

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what types of collateral or acceptable on a bond of over $50,000?

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collateral must be received in the insurers name

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collateral must be held separate and apart from any other funds or assets of such bail bond agent

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collateral must be returned after for filament within 21 days after the bail bond has been discharged in writing by the court

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The steps and converting collateral are: the insurer first shall give 10 days written notice of intent to convert the collateral deposit into cash. Notice is then sent by certified mail to the last known address of the indemnitor and principal. The expenses cannot exceed 10% of the face value of the bond and less proof is provided.

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collateral receipts must be consecutively prenumbered and contain the date, the name of the principal, a detailed description of the collateral received, the number of the power of attorney form attached to the bond, and the name of the person placing the collateral in the bail bond agents trust.

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