Various terms and phrases relating to bail bonds can understandably be confusing for someone unfamiliar with the administration of bail. We hope that the explanations below can provide a resource that alleviates stress or worry about the bail bond process.
- PREMIUM – Premium is the amount charged for a bail bond transaction to take place. This is not
refundable. In the State of Minnesota, the bail bond premium is 10% of the bail bond, unless in some circumstances when a minimum fee is required.
- COLLATERAL – Physical/Real Estate/Money that is taken by the Bail Entity, to be held against the Bail Liability in the event of Forfeiture. What kind of collateral is taken can vary depending on the Bail Bond Company. Most often, collateral is monetary. Collateral cannot be used in place of a bail bond premium in the State of Minnesota. The amount of collateral required (if any at all) is determined by the Bail Bond Company, based upon a risk assessment performed during the underwriting process.
- UNDERWRITING – Process of obtaining and/or verifying information to determine risk. This type of risk assessment is common in the insurance industry. Bail Bond Companies may have
different risk thresholds when evaluating a potential client’s history.
- SKIP TRACING – Action/Process of obtaining information and/or locating a person/asset. Skip Tracing can also be a tool utilized during the underwriting process.
- POWER OF ARREST – The power/authority to locate and/or apprehend a person on behalf of a Surety/Bail Entity.
- VERIFICATION OF SURRENDER – The tool utilized in verifying the apprehension/surrender of a Defendant.
- BOND DISCHARGE – Done through Court motion/action. The Bail Bond Entity/Surety is no longer responsible for/has been released of the liability of the bail bond.
- REINSTATE AND DISCHARGE (Court Motions) – Court Motions made to have a Forfeited Bond Reinstated and then Discharged.
- AFFIDAVIT – A voluntary, written, or printed declaration of facts, confirmed by the oath of the party
making it before a person with authority to administer the oath.