You Can Find the Right Bond for You
Surety bonds and bail bonds are different. Surety bonds are used by the court system during legal mediation. These two types of bonds do operate similarly, but there are differences between them.
What is a Bail Bond?
A bail bond is used to release a person from police custody. When a person is arrested, they are placed in jail. They will go before the judge for a bail or bond hearing. The judge will set a bail amount that can be used for release from jail. If the defendant cannot afford the bail, they will remain in custody. Some people hire a bail agent to post the bond amount for them. These agents usually charge a 10 percent fee for their services. When the bond is paid, the defendant is released from jail until their next court date.
What is a Surety Bond?
Surety bonds guarantee that a financial obligation will be met. There are three parties that enter an agreement with the surety bond. These parties include the principal, the obligee, and the surety. The principal will take the bond to ensure the obligee meets certain obligations. If the obligee fails to meet them, the surety will provide compensation. All surety bonds include an indemnity agreement. These types of bonds put the risk on the principal.
There are Different Types of Surety Bonds
There are four different types of surety bonds. A contract bond is used for general contractors, construction companies, and federal subcontractors. This bond ensures that the construction contract obligations will be met. The second bond is a commercial bond. Any company that operates with a license carries this bond. This guarantees that the company will comply with all required codes. A fidelity bond protects a company and their clients from employee theft. A company that handles large amounts of cash will use this bond. Finally, a court surety bond protects someone from a loss in a court proceeding. Plaintiffs with a fiduciary duty should use this bond in a court case.
There are many surety bond companies Minneapolis MN. If you need a surety bond, you can find the right company to meet your needs.