There are many types of bonds. Bail bonds and surety bonds are the most common ones. Bail bonds are used in the criminal court system. Civil cases handle surety bonds. Here are a few things you should know about bonds.
When should you use a bail bond?
Bail bonds are used in the criminal court system. When someone is arrested for a crime, they are taken into police custody. This person will have to appear before a judge for a bail hearing. At that time, the bond amount is set. If the person can pay for the bond, they will be released from custody. Bail bond companies can help those who cannot pay for bail. The person will pay 10 percent of the bond. The remaining amount is paid by the company. There are fees associated with this service as well. The person must also show up to court or have a warrant out for their arrest.
Is a surety bond the same as a bail bond?
People confuse surety and bail bonds. A surety bond is used to guarantee a financial payment. This bond requires three parties to come to an agreement. The main parties include the principal, the obligee, and the surety. It is the principal who takes out this type of bond. If the obligee fails to meet the financial agreement, the surety will pay for it. An indemnity clause is always carried with this bond. The principal assumes all the risk in a surety bond.
What does a surety bond cover?
There are different types of surety bonds. Construction companies will use a contract bond. This guarantees that the contractor will complete the work according to a contract. Licensed companies use a commercial bond. These companies must comply with all regulations and codes. A business that handles large amounts of money will carry a fidelity bond. This bond protects their assets from employee theft.
If you need 24 hour bail bonds Allentown PA, there are plenty of choices in your area. These companies will help you find the right bond for your situation.