If you thought money is the only way out to pay for a bail bond, then you are 100 percent wrong! Systems are changing, and there are several bureaus or agencies that work to make sure that the conventional way of using money to pay for a bond is reversed. Freedom / Libertad Bail Bonds serving all of San Angelo allow particular possessions to count as bail, with the same value as the amount of money you were to remove.
After your arrest, you can call a bail bond service to post your bail; the agency will then require collateral before funding that bail.
Let’s begin by understanding what bail bond collaterals are and then move on to the type of bail bond collaterals available.
What is a Collateral Bail Bond?
A bail bond collateral is a valuable item, machine, or property held as a guarantee by a bail bond agency to ensure that a suspect strictly attends their court appointments. If the defendant misses their hearing, the bail bond company will be forced to pay the court the entire sum of the bail.
After that, the bail bond agency sells the collateral to recoup any losses that they incurred. There are numerous options for bail-out bonds – and collateral may be helpful if you cannot afford to pay the bond in cash. Here are some kinds of collateral for bail bonds:
The collateral for bail bonds may include all types of vehicles, such as cars, boats, yachts, motorcycles, motorbikes, tractors and trucks, etc. However; you must present title deeds for the bail bond agency to examine and approve. The bail bond firm will then retain the provided documents but still allow you to utilize the vehicle. However, if a defendant consecutively misses the court hearings, the agency may sell the car to recover its losses.
Property Such As A House
If you are the principal owner of a house or a plot of land, you can use these assets as collateral. However, it must be in excellent form, valuable, and not subject to a mortgage. Alternatively, your family or friends may also provide their property if they are willing to sponsor you to serve as collateral.
Offering property as collateral means, you must submit an official document to your county court and notify them that your property is partly under the control of a bail bond firm. One other advantage of opting for this type of collateral is that you may continue utilizing your assets until exonerated.
Bail bond companies often accept valuable items that can be pawned as collateral. These may include antiquities, artwork, gemstones, precious stones, precious metals, timepieces, and even technological devices.
Note that you will be asked to bring forth genuine documents that clearly indicate your right to ownership. Without these papers, it may not be possible to process the bail bond until the right certifications are provided.
However, bail bond firms have different policies on valuables. You should always check their policies before you decide on using valuables as collateral.
Irrevocable Credit Letter (ILOC)
An ILOC is a letter from a financial institution to a bail bond agency assuring them that the bank guarantees a defendant’s bond in line with the requirements of the bail bond agency. To obtain an ILOC, you need to have enough money in your account or be a reputable client to the bank.
However, if the banks agree to secure your bond, you must guarantee that you will not go against the terms laid out in the agreement. You should also have enough money to pay for any losses that the bank might incur if you fail to attend the court sessions accordingly.
Investment In Bond Or Stock
Also acceptable as collaterals are bonds and equities. The investment value should be greater than the amount of the bail. Generally, the bail bond firm will retain the investment for the duration of the court case.
Eventually, the bail bond firm will return your investments to you after your bail is cleared. Moreover, you will be responsible for all other outstanding costs imposed by the bail service provider.
Another form of collateral could be credit cards. Typically, for credit cards to be approved as collateral, the account balance must exceed the amount of your bail. You must provide your authorization number to the bail bond agency to recover any losses that may accrue in cases where you might fail to comply with the terms and conditions of the bail.
Finally, cash is not a popular kind of collateral. But it is the most straightforward and acceptable sort of collateral for bail bonds. In general, money works as collateral if the bail amount is not hefty.
Bail bond brokers are practically equivalent to cash since they do not need a transfer of ownership; it only entails a physical exchange once your case is absolved.
Author Bio: Written by Meghan Hale, a content writer, and editing machine. She is working with Pearl Lemon Accountants. You’ll find me yelling at my dog to stop barking, whether it be at the neighbors or on a long afternoon walk