Understanding Bail Bond Collateral in Minnesota: Essential Information You Need to Know
When someone is arrested and charged with a crime in Minnesota, posting bail is often necessary to secure their release from custody while their case is pending. Bail bond companies like ours provide a surety bond to help defendants post bail, ensuring they return to court for all required proceedings. If the defendant fails to appear, the court may forfeit the bail bond and demand payment of the full bail amount. Learn more about the bail bond process here. In certain situations, collateral is required to secure a bail bond for you or your loved one. In this blog, we’ll explore when and why collateral may be needed, the types of collateral our Minnesota bail bond company may accept, and what the bail bonding process entails.
What is Collateral?
Collateral is an asset, such as property, that a defendant or co-signer pledges as security to secure a bail bond. The purpose of collateral is to give the bail bond company a means to recover their losses if the bail bond is forfeited. If the bond is forfeited and the defendant or co-signer cannot pay the full bail amount, Metro Bail Bonds, a trusted Minnesota bail bond company, reserves the right to seize the collateral and sell it to cover the amount owed.
Why is Collateral Needed for a Bail Bond?
There are several situations in which a bail bond company may require collateral:
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If a Minnesota Judge sets the bail particularly high, Metro Bail Bonds may require collateral to mitigate their risk. High bail amounts are generally considered to be anything over $100,000.
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If the defendant has a history of failing to appear in previous or current Minnesota court appearances, or if they are considered a flight risk, Metro Bail Bonds may require collateral to ensure full coverage of the bail if the defendant skips court.
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If the defendant or their MN co-signer (the person who agrees to pay the total bail amount if the defendant fails to appear) has poor credit or no credit history, we may require collateral to recoup our losses if the defendant does not appear in court.
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If the defendant or their MN co-signer does not pay the full bail bond fee up front (10% of the bail), we may require collateral as a form of security. However, this situation is extremely rare.
What Types of Collateral do Minnesota Bail Bond Companies Accept?
Bail bond companies in Minnesota may accept a variety of assets as collateral. The specific types of collateral that are accepted will vary from company to company, but four common examples include:
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Minnesota bail bond companies may accept real estate as collateral, such as a house, condo, or piece of land. The property must be owned outright or have substantial equity in order to be accepted as collateral. For example if bail is set at $250,000, and you use your home worth $250,000 as collateral but have only paid $125,000 towards the mortgage, we may need additional collateral or co-signers in order to post your bond. We would need the additional security because if the bond is forfeited, we would only be able to recover $125,000 if we were to seize and sell the home.
Note: If real estate is pledged as collateral, Metro Bail Bonds does not take physical control of your house. Instead, a lien is placed on the home while the bond is pending, giving us the right to sell the home if the bond is forfeited.
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Minnesota bail bond companies may accept vehicles as collateral, such as cars, trucks, motorcycles, or boats. The vehicle must be owned outright. However, only in rare circumstances will Metro Bail Bonds accept a vehicle as collateral.
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Bail bond companies may also accept cash as collateral. This is the most promising form of collateral, but it is also a rare form of collateral. The co-signer or defendant would need to provide enough cash to cover the full bail amount or a majority of it. When a defendant or cosigner is able to cover the bail amount in cash, they typically do not need a bond and can post bail directly with a Minnesota jail or court.
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Jewelry, electronics, antiques, or anything else worth value may be accepted as collateral. However, Metro Bail Bonds will typically not accept this type of collateral as it is often difficult to ascertain the worth of these items.
I have Collateral Ready to Post a Bond in MN, How Does this Process Work?
When a bail bond company in Minnesota requires collateral to post a bond, the process for taking the collateral will depend on the specific assets involved. For example, if the collateral is real estate, the MN bail bond company may place a lien on the property to secure the bond, as mentioned above. If the collateral is a vehicle, the bail bond company may hold the title of the vehicle until the bond is paid in full.
According to the Minnesota Department of Commerce, bail bond companies in Minnesota are required to follow certain regulations when taking collateral. For example, they must provide the defendant or their co-signer with a written agreement that outlines the terms of the collateral. They must also provide a written receipt for any collateral that is accepted.
If the defendant appears in court as required and the case is closed, the collateral will be returned to the person who provided it once the bond is released. If the defendant fails to appear, the MN bail bond company may sell the collateral to recoup their losses.
In conclusion, understanding how collateral works in the Minnesota bail bond process is crucial for anyone needing to secure a bail bond. Collateral provides a safety net for bail bond companies, ensuring they can recover their losses if a bond is forfeited. Whether it’s property or another valuable asset, collateral helps to guarantee that the full bail amount can be covered if necessary. Metro Bail Bonds, a trusted local bail bondsman offering 24/7 bail bonding services, is always ready to assist with any questions about collateral or the bail bond process. Our round-the-clock availability ensures that you can secure a bail bond and post bail at any time, day or night, making the process as smooth as possible for you or your loved one. Give us a call today!
