The term "bail bond" is often seen used. What are bonds in the context of bail law? Bail is the surety/ money a defendant or pays in order to ensure the appearance of the defendant in the court on a later day. A bail bond compels payment of bail amount. In order to help defendants who cannot afford to pay the bail amount, there are entities such as bail bonding agents and bail bond companies. A bail bonding company acts as a surety for the appearance of defendants and issues bail bonds. On the assurance of a bail bond company, a court will allow the defendants to go free. In return, bail bond companies charge a percentage of the amount of the bond and also require the defendant to furnish collateral security. The company issuing the bail bond surety has to pay the bond as a penalty if the defendant fails to appear on the specified date in the court. If the bail bond agent believes that the defendant s/he bailed out is about to flee, s/he can cancel the bond performance and arrest that defendant. Bail bond agents are licensed and bonded by state law.
There are several types of bonds where each bond is different and has a specific purpose. In the context of bails and bonds, a surety bond is a type of security bond given for the amount of the bail and guarantees an accused person's return to court. In finance, a surety bond is a bond in which one party promises to pay a specified sum to the other party if a third party fails to meet some obligation. In either case, a notice of bond should be filed before making claim on a surety bond.
Surety bonds may be of different types depending upon their field of use. A surety bond issued by an insurance company in order to assure completion of a venture by a contractor is called a performance bond. Another type of surety bond is a construction bond. It is issued by investors to protect themselves against any failure in completion of construction by builders. A payment bond is a surety bond issued by a contractor to guarantee payment to sub- contractors.
There are also other forms of bonds like bid bonds, fidelity bonds, and license bonds. A bid bond is issued for the purpose of providing an assurance to a project owner to the effect that the bidder will undertake the job. Fidelity bonds are insurance bonds that protect policy holders from losses. A license bond is a mandatory bond for securing a license to pursue some business or profession.
An appeal bond is a bond given when a judgment is appealed. It is given as an assurance of payment of the original judgment amount. An appeal bond is given at the time of filing a notice of appeal or after obtaining the appeal order. Another type of bond filed at the time of appeal is the supersedeas bond. It is filed by an appellant to delay payment awarded in the original judgment pending the appeal.