An arrest in California can create a rushed and stressful situation. Once the judge determines the amount of bail, it appears as if there is only one thing that needs to be done: pay it. However, for many individuals, the amount that appears on the bail schedule is well out of their immediate cash flow. The defendant or his family is now faced with a tough financial decision. They need to find a way to get a release without having to come up with a lot of cash all at once. This is where a bail bondsman is a necessary service.
The Sticker Shock of a Bail Schedule
The courts in California have a standardized bail schedule that assigns certain bail amounts by crime in California. These sums are not random; they are tied to the severity of the crime and the likelihood of the defendant fleeing. A minor crime may have a bail value in the thousands, while a serious crime can have a bail value in the six or seven figures. For most people, these values are theoretical until they are arrested. Being faced with a $50,000 bail with only a $2,000 savings account creates a need for a different financial solution.
The Core Function of the Bail Bond
The bail bondsman offers a financial service referred to as a surety bond. This is an agreement between the bail bondsman and the court, where the bail bondsman agrees to cover the entire bail amount on behalf of the court. In return for this service, the defendant or the guarantor of the defendant pays a non-refundable premium. This premium is the cost of service for the bail bondsman. It enables the court to get a guarantee of payment without requiring the defendant to have all the money.
The Financial Logic of a 10% Premium
The amount a bondsman can legally charge is determined by California law and is generally 10% of the total bail. However, if the defendant does not show up for the court hearing, the bondsman becomes responsible for the entire bail amount. The bondsman takes this money to run his business and also keeps some of it aside in case he has to pay the court due to a forfeiture.
The Legal Obligation of the Cosigner
The contract has to be signed by the person hiring the bondsman. The person who signs this contract is usually a friend or a member of the defendant’s family. This person is usually called the cosigner or the indemnitor. One of the most important undertakings in this contract is that the defendant will be present in court. If the defendant fails to appear in court, then the cosigner will have to pay the bail amount. Since this will affect their family, the defendant is under immense pressure to comply with the court’s orders. In order to avoid this situation, the bondsman becomes the defendant’s keeper to ensure that the defendant remembers his court dates.
How It Differs From A Cash Bond Option
A cash bond is where bail amounts by crime in California is settled in cash to the court. If the defendant has appeared at all hearings, the capital is reimbursed at the end of the case, minus a few administrative expenses. This is the most economical prospect for the defendant. However, if the defendant does not have this cash outlay, there is a bail bond available.
The Requirement of Tangible Collateral
The 10% premium is for the service, but the bondsman also needs collateral to cover their potential liability. This is where collateral comes in. If the defendant does not have much cash, the bondsman can accept a lien on tangible collateral. The house, the title to the car, or other valuable property can be used as collateral. This will protect the bondsman. If the defendant skips bail, the bondsman can take the collateral to get the money back that was paid to the court. For the family, this means they can use the value of their property instead of cash.
Typically, calling a bondsman in California is a reactive move due to a lack of funds. It is basically an option that one comes to when the bail amount far exceeds the cash they have at hand. The bondsman organizes a regulated financial arrangement that, in a nutshell, swaps a cash payment for a contract backed by collateral and a fee. Thanks to this, the accused can carry on with their life and get ready for the court proceedings without having to worry about gathering a huge sum of money.
