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The Structure of the Bail
Bond Contract
A Bail Bond is executed with a legal
instrument known as a recognanze.
It is a 3
way contract between the State of New
Jersey
, the Surety and the
Defendant.
The bail
bond contract calls for the Surety to produce the Defendant to the
New Jersey Court each and every time he is called to
appear.
The
Contract becomes in breach if the defendant fails to appear. Under
contract law, the bail bond is forfeited and must be paid to the
Court.
There are
provisions that allow for a timely surrender of the defendant
(75 days).
There will then be Court costs paid to the New Jersey Bail Fund and
attorney fees incurred.
The bail
can not be reinstated, nor can there be any changes to the bail with
out the approval of all 3 parties to the Contract.
Definition:
bail bond n. a bond provided by an insurance company (the
Surety) by Power of Attorney to a bail bondsman acting as
an agent
for the
company, to secure the release from jail of an accused defendant
pending trial. The Usual charge or “Premium" is 10 percent of
the
bail (e.g.
$1,000.00 for a $10,000.00 bond). At times the defendant
or Co-Signer must pledge collateral such as a deed of trust or
mortgage
on Real
Property. Upon acquittal, conviction, or other conclusion of
the case, the bail bond is "exonerated" and returned to the
Surety.
If the
person who has been bailed out fails appear in court, the bond
funds will be forfeit unless the defendant is surrendered to the
court.
The
Real
Way
It
Works: As stated above however, The Bail Bondsman signs a
contract with the Insurance Company whereas, The
Bondsman
holds the
Insurance Company harmless. Meaning, that if the Defendant fails to
appear in court and is not surrendered in 75 days, the
Bondsman
is to pay
the Court the full amount of the bail bond. If the bondsman does not
pay, the Insurance Company will pay the court and then
go
after the
assets of the bail bondsman (most bondsman put up their own cash or
real property with the insurance company as
collateral).
In turn,
the Co-Signer or "Indemnitor" will sign like documents holding the
Bondsman harmless and pledge to pay the bail amount if
forfeited.
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