In the unfortunate event you arrested then you will want to secure a temporary release pending the determination of the case. This is where a bond comes in handy. A bond is a financial instrument in a legal case. Surety and cash bonds are a promise that the defendant will show up for court dates. The difference between cash and surety bond is the person who bears the risk and who pays the money. Let break down the two to get a clear understanding of their main differences.
What is a Cash Bond?
A cash bond is a guarantee of payment held in cash. The defendant pays cash amount as a promise to show up during case proceedings. Posting the full amount is the easiest option for getting someone out of jail.
In a cash bond, the cash is the guarantee of payment. The court holds the full amount to ensure that the defendant shows up for court dates. It retains the money if you fail to appear for court dates. However, the court will return your money fewer court charges if you show up for court dates.
Do You Need a Bail Bond?
In cash bonds, only two parties are involved, the client and the jail. The client can be the accused or firm and relatives of the accused. The defendant pays cash directly to the jail to be released.
What is a Surety Bond?
A surety bond is like an insurance policy. A surety company, or Indianapolis bail bondsman pays the bail money on your behalf, and the defendants pay the surety company a premium, usually 10% of the bail money. If the defendant appears the court dates, the court will give back the money to the defendants. Therefore, if the defendant shows for court, no one loses their money. In contrast, if the defendants fail to show up for court, the court will keep the full bail amount.
Surety bonds involve three parties the client, Indemnitor, and jail. Like in cash bonds, the client can be the defendant or loved one bailing them out of jail. The Indemnitor or bonds agent is the party providing the surety bond. They take liability for the bond ordered by the court. The court accepts the bond on the condition that the defendant will appear for court. The bondsman pays the full bond amount if you fail to appear for court. Typically, the bondsman will use a form of personal assets as collateral. You, therefore, risk losing your property if you fail to appear in court.
The difference between a cash bond and a surety bond is the person who pays and who assumes the risk. When you post a cash bond, you assume a 100 percent risk of the bail amount. When you contract a bondsman to pay bail you the risk is spread between the surety company, client, and bail bondsman.
Bond is a financial promise to appear for court dates when released. Both cash bonds and surety bonds will have released in from jail. The main advantage of a cash bond is that it is straightforward, and you will get most of the cashback. A surety bond, on the other hand, is good in the sense that you only need to raise a part of the bond amount. A bondsman caters for the full amount.