What is collateral?
When discussing loans with a banker, the term collateral, and what you can offer for collateral is discussed. But what exactly is collateral? Collateral is what will pledge to the bank in the event that your should have to default on your bank loan. This asset is what will guarantee the repayment of your loan. If you default, the bank has the full power and authority to seize your collateral property to attempt to make up the loss from the loan default.
Collateral is some property placed within the bondsman’s legal control, which may be sold in the event the defendant does not appear for their assigned court dates. The bondsman can then sell the property to recover the amount of the bond. Essentially, collateral is a way of insuring the defendant will go back to court and complete his or her obligation to the court.
Sometimes bail companies use collateral to ensure their clients show up for all necessary court appearances and fulfill the terms of their bail contracts. Collateral is usually in the form of cash or real estate. If the client fails to appear in court, the court will order a “forfeiture” of the bond and the bail company will use the collateral to pay back the debt. In most cases, First Choice Bail Bonds is able to write our bonds without collateral. We take many factors into consideration such as length of time in the community, job history, ability to pay, type of crime, etc. These considerations are made for both the defendant as well as the cosigner. Essentially, collateral is a way of insuring the defendant will go back to court and complete his/her obligation to the court. CALL US TOLL FREE 888.851.
