Collateral is a common concept within the bail bond industry. It is used to help individuals who need the requisite cash reserves. Good collateral items include a fully owned property with no mortgages or liens and high-value jewelry and vehicles. Bank accounts and credit cards are also sometimes used as collateral.
Cash
Cash is the most common collateral for bail bonds Allentown, PA. It’s also the easiest to work with since it can be quickly liquidated and used to cover the premium or bail amount if the defendant skips out on their court hearings. Other commonly accepted collateral types include real estate, vehicles, and jewelry. However, certain types of jewelry may see significant value fluctuations, so it’s best to check with each bail bond agent. Other typically acceptable collateral forms include stocks and bonds, the property you own the deed to, and various savings accounts. Almost anything of value that can be easily monetized can be used as collateral for bail bonds.
Real estate
A property bond is a type of bail that involves giving the court a piece of tangible property worth the bail amount. In exchange, the defendant or an indemnitor agrees to pay the court the original bail amount if they fail to appear. Real estate properties, heavy machinery equipment, and equivalent amounts of cash are common collateral for bonds. However, to qualify, the property must be free of mortgages and other liens. Certain valuable items, such as jewelry, precious metals, and savings or investment accounts, may be considered collateral. The value of these assets is based on their market value and quality.
Vehicles
The most common forms of collateral for bail bonds are vehicles and real property. Generally, a bail bond agent will evaluate these assets and their value to determine the appropriate amount of collateral needed for the case. To qualify as collateral, the items must be free and clear of liens or mortgages. Some items, such as jewelry or art, may require a professional appraisal to verify their true value. Typically, the collateral is returned when the defendant fulfills their legal obligations and their case is resolved. However, if the defendant fails to appear in court and their bond is revoked, the bail bondsman or the courts will seize the collateral.
Jewelry
Collateral is anything of value you offer in place of or in addition to the bail money. It can include jewelry, precious metals like gold or silver and even real estate. The bondsman must agree on the appraisal value of these items and keep them in their possession until your case is resolved. If you want to use property as collateral, be sure that you are the legal owner and that it is free of any mortgages. You can also offer stock or bonds as collateral. In this case, you must provide the bond company with a copy of the deed and proof of ownership.
Bank accounts
There are several times when a bail bond may be necessary. Defendants can offer property, such as real estate or vehicles, to secure the bond. In addition, they can also use other valuable assets, such as jewelry or electronics. Bail bond agents often use bank accounts as collateral for their bail agreements. These accounts should be inspected to verify that they contain sufficient cash balances. It is also important to keep detailed records of collateral receipts. This will help reduce the risk of chargebacks from credit card issuers. This can be done using an online payment portal offering Address Verification Services and a three or four-digit Card Verification Value.
Credit cards
A credit card can be used as collateral for a bail bond. This is an option for people who need cash to pay a bond. A person who wants to use this type of collateral should sign an authorization form, which permits the company to run a transaction for the full amount of the bail bond in case of a failure to appear in court. Bail bond merchants can enlist to help them obtain a high-risk bail bonds merchant account, allowing them to accept credit card payments. An exemplary credit history and prominently displayed privacy and refund policies can increase the likelihood of underwriter approval.