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WTMHouston

09/17/02 4:43 PM

#5088 RE: Mattu #5087

Bail systems work differently everywhere. In many, if not most places, a $2.5M bail would require either posting the entire $2.5M or paying a bondsman to do so. Bondsmen seldom, if ever, actually post the full amount -- they usually have preexisting deposits of land or cash (or are part of an insurance company licensed in that state to be a surety) that allow them to write a certain dollar volume of bonds. The bonding company becomes the surety for the bond. There are few if any bondsmen who could or would make a $2.5M bond without being fully secured with fairly liquid assets. The bondsman's fee is typically 10 percent of the bond amount, but event his will vary depending on local regulations, competition, any preexisting relationship, and risks specific to that bond.

The federal system, on the other hand, typically works a bit differently. Rather than it being one set method, as it is in most states, the judge can modify the precise terms in any given situation.

It is pretty common in federal court for a bond to some with a "10 percent cash deposit" tag. Essentially, this means that the person makes a 10 percent cash deposit with the court and becomes obligated to pay the rest if the person fails to show up. Sometimes, the court will permit the 10 percent to be made by cash or surety. In that situation, a person could make a $2.5M bond by paying a bondsman $25K (10 percent of the $250K surety bond that the bondsman would have to post).

Of course, the court could order a full cash deposit or a full surety bond, but that is pretty uncommon in federal court.

The court can (and frequently does) also order one or more cosigners; essentially, co-sureties who also agree to pay the full amount of the bond in the event the Defendant fails to appear.

If I get a chance later, I'll take a look at PACER and see if it shows anything.




Troy
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Phil(Hot Rod Chevy)

09/17/02 8:54 PM

#5089 RE: Mattu #5087

Matt,

One thing you should keep in mind where bondsmen are concerned:

If you pay a bondsman 100K to post a bond for you, he keeps the money, whether you show up or not. If you show up, all is well and good. If you don't he sends a bounty hunter to find you. And will probably charge you the expense.

At least that's the way I understand it.

Have fun,
Phil