If you have been jailed for an offense, you can get out on bond and wait for your court date. You can either opt for a surety or cash bond. Both of these bonds aim to ensure that you will appear in court. Therefore, both can secure your release from jail after the bail amount is set. Here is the difference between the two.
The Guarantee of Payment?
If an accused person posts bail with cash, the court holds the cash to ensure they appear for their hearing. If the accused fails to show up for their hearing, the court will retain the money. But, if the suspect shows up, the court will return the money. In this case, cash is the guarantee of payment.
A surety bond is different because it involves three parties: the accused, the bail bond agent, and the surety company. Therefore, a surety bond is a loan given to the accused party to post bail. The bail bondsman borrows the money from a surety company on behalf of the accused. However, the accused must pay a fee and provide collateral as a guarantee of payment.
Who Is Buying?
In the case of a cash bond, the accused pays the entire bail amount. Alternatively, a relative or friend can post bail for them if they cannot raise the money. For a surety bond, the bail bondsman pays the bail amount. The accused pays the bail bonds service 10% of the total bail amount for their services. The bail bondsman secures a loan from a surety company to pay the remaining balance of the bail amount.
Who Assumes the Risk?
The person who posts the full bail amount for cash bonds assumes the risk. Therefore, if a relative or friend posts bail for the accused, they will lose their money if they don't attend their hearing.
On the other hand, in surety bonds, the accused and the surety company assume the risk. The surety company assumes the most significant risk because they will raise the entire bail amount. The bail bonds company offsets the risk by requiring the accused to provide collateral. Therefore, the accused can lose their collateral if they don't comply with the conditions of the bail bond.
What Are the Advantages?
The main advantage of a cash bond is that the total amount of money is refundable if the accused fulfills their obligations. With a surety bond, the accused has to pay a 10% premium to the bail bondsman. A surety bond has the benefit of letting the accused avoid having to cover the whole cost of bail. The accused has only to raise a small fee and provide surety to be released from jail.
For more information, contact a company like Steele Boys Bail Bonds.