Have you ever needed to free a friend or family member from jail? You have probably heard the term “cash bond” but how does a cash bond work?
In order to get someone out of jail, there are several different sorts of bonds that can be given. A typical variety is a “Cash Bond,” which is just a regular bond except that the individual posting the bond only provides cash as security.
Here, you’ll find out everything you need to know about cash bonds, including how they work and how to apply them. Let’s start with a fundamental knowledge of what a bail bond is.
What Is a Bail Bond?
A bail bond is a payment made to the jail in order for a defendant to be released until their court date. If the defendant is unable to pay bail, they must remain in jail until their court date.
Defendants can also make contact with a bail agent. Many people do this because, when they use an agency, they only pay a portion of the bond upfront. Friends or relatives of the defendant may frequently contact a bail agent on their behalf.
If you decide to hire a bail bondsman or agent, they will draft a contract to ensure that you understand your responsibility for the defendant’s attendance at all court proceedings.
If the defendant fails to appear, you will be held liable for the full amount of the bail. Someone other than a bail bondsman must post the cognizance bond. Judges use this to ensure that defendants’ families if they post bond, will make sure the defendant shows up in court.
Types of Bail Bonds
The four most common types of bail bonds for defendants who cannot be released on citation are as follows.
The various types are as follows:
- Cash bond
- surety bond
- Personal Recognizance Bond
A cash bond, as the name implies, is a bail amount that must be paid in full and in cash. It makes no difference who pays the bond. You are free as long as it is paid in full.
A cash bond can be refunded once your case is completed, as long as there are no outstanding fees, restitution, or fines. In fact, an attorney who has not been paid in full can ask the judge to release the cash bond in order to pay for unpaid legal services.
This is most likely the most common type of bond ordered by a judge. A surety bond is 10% of the total bond ordered by the court and must be paid in full before you are released.
This is accomplished through the use of a bail bondsman, who then posts bail on your behalf. If you flee or fail to appear, the bail bondsman is liable for the remaining portion of the bond. Yes, the entire amount. This is a non-refundable bond.
Personal Recognizance Bond
A personal recognizance bond is similar to a surety bond in that it only takes 10% of the total bond to bail the person out of custody.
The main distinction is that a personal recognizance bond cannot be posted by a bail bondsman. Judges use this to ensure that defendants’ families post bond, making sure the defendant shows up in court.
Property bonds are permitted in some counties. A property bond is a type of bail bond in which the defendant provides property to the court. In most cases, the property must be worth at least twice the amount of bail.
The court has a lien on the property, allowing it to seize it if the defendant fails to appear in court and forfeits bail. A property bond can take significantly longer to complete than other bond types. This is because the application requires a number of notarized documents and appraisals that verify the value of the property being offered as a bond.
You may also check out: How to Prepare Cash Flow Statement
How Do Cash Bonds Work?
In order to pay for that bond, you must have a substantial amount of cash on hand. If you don’t have enough cash to bail someone out of jail, obtaining a surety bond is the next best option.
Furthermore, if the person appears in court as required, the court will return the full cash bond you provided, minus any costs or fees owed based on the outcome of the case. On the other hand, if you pay a cash bond for someone, you risk losing every cent if the accused fails to appear in court.
Substantial Cash Bond Example
Here is a comprehensive example of a cash bond to help you understand it. Assume Jamie, a Brooklyn resident, has violated the law and the court has set her bail at $20,000. Jamie does not want to stay in jail while her court case is being heard, but she does not have the $20,000 in cash. As a result, Jamie decides to contact a bail bondsman to post a bail bond.
The bondsman is paid 10% of the bond amount, or $2,000, in exchange for their services. The bondsman obtains an equivalent amount in collateral from Jamie or someone in her family for the remaining $18,000. Jamie follows the court’s rules and appears at her court dates, so she receives the $18,000 in collateral back at the end of the trial, $2,000 less than she would have received if she had paid the bail herself.
How To Pay a Cash Bond
Most people do not have the funds in their budget to post bail for a friend or loved one. A bail bond can help with some of the upfront costs of posting bail because it is typically only 10% of the cost of putting up the full bail amount. Nonetheless, that ten percent can be quite costly. When working with a bondsman, you will usually be given a few payment options for cash bond, such as the ones listed below.
- Cash Bail Bonds
- online with a credit/debit card
- Payment Strategy
- Valuable assets
#1. Cash Bail Bonds
The most straightforward way to pay for a bail bond is with cash. This will relieve the burden of paying later and ensure that your friend or relative is released as soon as the bond is issued by the agency.
#2. Online with a credit/debit card
Another viable option for paying for a bail bond is to use a credit card. It is critical that you understand your credit limits and the monthly payments required to pay off the loan based on your current credit limits and percentage rate.
#3. Payment Strategy
In some cases, the bail bond company may be able to work with you to develop a payment plan that is more affordable than what a credit card may offer
#4. Valuable assets
Collateral is an alternative method of payment. You can frequently trade valuable items, such as property, vehicles, or jewelry, for the cash bond’s face value. If the bond is forfeited for any reason, the bail agency has the right to seize the item.
Also read : Cash Flow: All You Need To Know
What Is a Cash Bond Agreement And How Does It Work ?
When a person is arrested and taken to jail by the police, a cash bond is used to secure their release until their court date. Though that part of the process may appear straightforward, it is critical that you understand what is included in a cash bond agreement and the process involved so that you can understand the responsibilities while out on bail.
The cash bond agreement is a contract between the indemnitor (the person signing the bail bond) and the bail agent. Normally, the cash bond agreement includes the following:
- The name and contact information of the Indemnitor
- The day that the bail bond was executed
- The bond amount
- The criminal charge(s)
- The court at which the defendant is required to appear for their hearing
After signing the cash bond agreement, the indemnitor is responsible for ensuring that the defendant attends all court appearances. The agreement also states that if the defendant fails to comply with the bail bond conditions, the cash bond agency may seize the collateral used as security for the bond and use it to pay the full bail amount to the court. It is critical that both the defendant and the indemnitor strictly adhere to the terms of their cash bond agreement.
Cash Bond Refund
A bond is a promise to the court that a person charged with a crime will appear for future court dates and will remain within the court’s jurisdiction. Here’s everything you need to know about cash bond funds.
If the defendant in a criminal case where a cash bond was posted complies with the bond’s conditions, the cash bond may be refunded. A court order authorizing the refund is required.
If you want to request a cash bond refund, please review the process below.
Failure to properly complete the items listed below will cause the processing and return of the cash bond to be delayed. All cash bond refunds will be issued within fifteen (15) business days, less any applicable administrative fee.
What Does “Cash Bond” In Construction Mean?
A construction bond is a type of surety bond that is used by investors in building projects. Construction bonds are a type of surety bond that protects against financial loss or disruption caused by a contractor’s failure to complete a project or meet contract specifications. These bonds guarantee that the bills for a construction project will be paid.
What Exactly Is Cash Bond Meaning In Accounting?
You might be wondering what cash bond means in accounting. However, in accounting a cash bond is a fixed obligation to pay issued to investors by a corporation or government entity. Bonds are issued to fund operational or infrastructure projects.
Bonds typically include a periodic coupon payment and are paid off on a predetermined maturity date. A bond may have additional features such as being convertible into the issuer’s stock or being callable prior to its maturity date.
It is critical that the defendant appear, or you risk losing your entire money. If you hire a bail bondsman or agent to post a cash bond, they will draft a contract to make sure you understand that you are responsible for the defendant’s attendance at all court proceedings.
We hope that this article has given you a better understanding of how this cash board works.
FAQs on What is Cash Bond?
Is there cash bond online?
In general, you can pay a cash bond online or in person via: Cash, Debit card, or. Online bail payment is available for people shortly after arraignment, once the individual’s information is logged
what is cash bond?
A cash bond is a sum of money given to the court system to free a person from custody. The system may keep the money if the defendant fails to appear in court when needed.
Whats the difference between cash and bond?
Bonds are investments, whereas cash is just money itself, therefore that is the main distinction between the two. Cash is the most liquid asset, therefore it is susceptible to losing purchasing power due to inflation but also has little chance of losing its nominal worth.
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