What is the difference between cash bonds and surety bonds?
A bond is a financial instrument which is used as a form of guarantee or a promise. It serves as a guarantee that the suspect will appear in court for hearing. Each type of bail bond requires a type of backing or collateral that may be in cash. This type of cash can be provided by an individual or by the Surety Company that acts on behalf of individual or companies.
If you want some clarity on as then a surety bond associates with three parties while a cash bond engages two parties. For instance, if a bail bond is of $ 10,000 then in case of cash bail bond, the defendant or any of his family members pays the bail amount in cash to the court or jail.
When the suspect appears in court then he gets his bail amount back after deducting any fees charges by the court. While in case of surety bond, the suspect hires a guarantor or a professional bail bondsman to pay the bail amount. The services of bail bondsman or a bail bond company can be resorted in such a case by paying a fee which is often 10 % of the bail amount. When the defendant appears in court then the bail company gets the bail amount back by the court and the defendant gets a part of his 10% of the payment back after deducting any fees of the bonding company.
The cash bonds are easily understandable where the defendant pays the cash and get out of the jail pending the trail. He gets the maximum part of the bail amount back after deducting any court costs and charges. No extra money needs to be paid to a surety company in such case. But one of the limitations of these bonds is that they require a big sum of money and most of us don’t have immediate access to large amount of cash and may lead to stuck up in jail pending a trail. Also, in some states, even if the suspect appears in court and win the case then also he may not get back the entire cash refunded. The forfeited amount of cash owed to the state or country from the bail may be utilized to pay for child support payments, court charges or back taxes.
On the other hand, the biggest advantage of surety bond is that the defendant needs not to bring large amount of cash to pay for the bail bond. He need to pay a small percentage of the bond company as fees and may get the payment back after being found non-guilty. Such type of bail bond does not hold any risk of child support payments or taxes.
Moreover, the services of surety companies can’t be used by anyone. If you want help from a then the surety companies weigh the risks and returns before issuing a bond. People with lack of financial sources may not qualify for non-bail bonds like those associated with licensing or construction. The surety bonds involves higher fee than cash bonds. For instance, a suspect may need to pay a charge to the court while using a cash bond but both court fees and charges of surety company needs to be paid in case of surety bond.