What Is the Consumer Agreeing to in the Bail Bond Contract?

Understanding the basics of a bail bond contract.

A bail bond contract includes promises made by the bonding company such as posting bail on behalf of a criminal defendant. The promises made in the bail bond contract are not limited to those of the bonding company. Any consumers seeking the bail bond, including both the defendant and a co-signer, also make specific commitments under the terms and conditions of the agreement.

Function

The primary function of a bail bond is to obtain the release of a person jailed upon suspicion of a crime. Using a bail bond permits the defendant to be released without having to post personally the full bail amount set by the court. In other words, rather than pay a $10,000 bail ordered by the court upon a person's arrest, a consumer pays the bail bond company (through a bail bondsman) between 10 and 15 percent of that total. The bonding company provides the court a guarantee for the rest.

Appear in Court

The most fundamental commitment made by a consumer when entering into a bail bond contract is that the defendant will appear in court. The defendant herself and anyone else signing the bail bond contract on her behalf agree that each and every scheduled court appearance will be met.

Pay Bond Amount in Full

If the defendant fails to make a court appearance, the judge likely will revoke bail. The net effect of a bail revocation is two-fold. First, the court issues a warrant for the defendant's arrest. Second, the full bail amount is forfeited and the bonding company pays the full amount to the court. At that juncture, pursuant to the bail bond contract, the defendant and any other person who co-signed the agreement are obligated to repay the bonding company in full.

Collateral

If the amount of the bail is high---typically over $10,000---the consumer signing or co-signing the bail bond contract usually must agree to pledge collateral. For example, the consumer agrees to a lien in favor of the bail bond company on real estate owned by that individual. The bail bond company can foreclose on the lien should the defendant fail to appear in court and the court order a bond forfeiture.

Misconceptions

A common misconception associated with a bail bond contract is that a consumer is entitled to a return of the money paid to obtain the bail bond itself. In fact, there is no such refund, even if the defendant fully complies with all court appearances and orders. The money paid to obtain a bail bond is a nonrefundable premium.

References

• California Department of Insurance: Consumers--Surety and Bail Bonds
• Delaware Insurance Code: Surety Insurance Contracts--Bail Bonds
• Washington State Department of Licensing: Bail Bond Consumer Rights

Resources

• New York Times: Illegal Globally, Bail for Profit Remains in U.S.