When a bail bondsman posts a bond for someone to be released from jail, they're taking on a great deal of risk. If the defendant fails to show up in court for their trial, the bail bondsman won’t be reimbursed and will be responsible for paying the entire bond amount. As Allied Bonding Company in Lexington, NC, explains, there are two types of bail bondsmen, surety bondsmen and property or professional bail bondsmen, and they work in different ways.
Surety bondsmen issue bonds backed by a surety or insurance agency that guarantees the bond amount if a defendant fails to appear in court. Every surety bondsman is required to deposit a bit of each defendant's premiums into a buildup fund (BUF), which is supposed to be used to pay for forfeited bonds. If the bond agency’s BUF can't cover the cost of repayment, the surety company will step in. Most surety bondsmen do everything possible to avoid this outcome because they may lose their right to issue bonds under that surety company.
As the name suggests, property bondsmen issue bonds secured by their own property, which is on deed with the jurisdiction in which they're allowed to operate. If a bond goes into forfeiture, they stand to lose that property and may have to pay even more if their collateral doesn't yield enough cash to cover the bond amount. Because a property bondsman's ability to post bonds is directly related to the value of their collateral, a forfeited bond can result in substantial losses.
For over 15 years, the experts at Allied Bonding Company have been helping people throughout North Carolina’s Triad area get friends and family members out of jail and back home where they belong. To learn more about their services, visit their website or call (336) 239-2270.