Many bond services will offer to take some form of collateral in lieu of cash or offer some combination of collateral and cash that can help. Sometimes, a bond service may require collateral in addition to the full cash amount. Discover what you need to know about collateral for bond services in Nevada.
Collateral Can Come in Many Forms
In Nevada, a bond service must charge 15% of the full bail amount or $50, whichever is greater. You pay the bond service that percentage, and the service will pay the court the full amount of your bail.
Some bond services will work out a payment plan with you, but many may want you or your cosigner to offer something of value equal to or greater than the full bail amount. This collateral works as a type of insurance against you possibly not showing up for court or violating the conditions of your release.
Collateral can mean practically anything tangible with a real, verifiable value attached to it. Many people understand they can use the equity in their homes as collateral, but that is only one thing someone can offer. Some other forms of collateral can include:
- Any owned vehicles
- Land or other property
- Jewelry, precious metals, and other high-value items
- A business or its assets
- Guaranteed investments, such as stocks and bonds
- Credit cards or an Irrevocable Letter of Credit from a bank
- Savings and non-retirement investment accounts
- Items that would fetch a high price when pawned
Generally, if the bond service will accept it, you can use it as collateral. In most cases, you will need to provide both proof of ownership and proof of the item’s value.
For large or immovable property, supplying the title, deed, or other proof of ownership will usually work. The bond service may want you to physically hand over smaller objects, such as jewelry. Understand the bond service can choose to accept what it wants to accept and deny things they do not want to deal with.
Often, the service will not spell out everything it will accept as collateral. This means you may have to negotiate or otherwise convince the service that what you offer as collateral has real value that meets or exceeds your bail amount.
If you can offer collateral the bond service can easily sell to recoup a loss, then the service will give it greater consideration. If you are not sure if your valuable asset or item will work as collateral, you should not hesitate to ask. You can also ask if the service will accept multiple items that collectively add up to the bail amount.
Using Cash as Collateral
Another form of collateral a bond service will consider is cash. This option does not come up for a lot of people because they are actively seeking a solution to avoid having to come up with a lot of money to secure a release. Still, most bond services will readily accept cash because the process does not require a lot of ownership entanglements.
Using cash as collateral can also help when the person has the full bail amount but does not want to post a full cash bail with the court. In this way, you can pay a portion to a bond service so you can still have money to take care of the things you need to take care of when you or a loved one is released.
Collateral May Become Forfeit
Violation of your bail agreement can lead to a bond forfeiture. When this occurs, the court will take the entire bail amount the bond service put up for you. From there, the bond service will have to liquidate your assets to recoup their losses.
The liquidation process can take a lot of time and resources. For example, if the collateral is a house, the bond service will have to do the paperwork to seize the property through the court, figure out the equity in the home, find a buyer, and spend weeks trying to sell the house.
In some cases, the bond service can offer a payment plan or some other remedy so the property owner can keep their property.
Preventing any of these potential outcomes requires only that you or your loved one show up to court and avoid violating the conditions of your release. Even if you violate your release conditions, you may have a chance to save your bond if you follow up with the court quickly and explain your situation to the bond service.
Collateral returns to the owner when your case ends, no matter the outcome of the case. If you need to bail yourself out or someone else but do not have the cash, contact All Star Bail Bonds immediately to discuss your options. We look forward to speaking with you.