The Motorcycle Title and Two Prior FTAs
Angela is a bail bondsman in Hagerstown. A 23-year-old defendant is held on $25,000 bail for second-degree assault and malicious destruction of property. He has two prior failures to appear in the last three years, no verified employment for the past 14 months, and lives with his mother. His mother wants to indemnify. She has $3,000 in cash, $2,000 in a savings account, and a 2012 car with a market value of $9,000 and an outstanding loan balance of $6,000. The premium at the lawful rate would be $2,500. The mother says the car is 'worth $9,000 free and clear' and offers the title. Angela's surety guide says: no more than one FTA in three years; verifiable income; collateral equity at least 50% of the bond amount, or two indemnitors with clean records.
1. Evaluate the collateral and indemnitor offer. Show the calculations.
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The lawful premium at 10% of $25,000 is $2,500. The mother's liquid resources are $3,000 cash plus $2,000 savings, or $5,000 total. After paying the premium, only $2,500 of liquid collateral would remain. The car is not 'free and clear': $9,000 market value minus the $6,000 loan leaves about $3,000 of equity, and the lender holds a lien that must be addressed before the title can be used as collateral. Even if the equity is counted, the combined net collateral is roughly $5,500, or about 22% of the $25,000 bond, well below the guide's 50% equity benchmark. The mother is also the only proposed indemnitor and does not have a clean record as an indemnitor because the defendant's two FTAs are the central risk.
2. Should Angela write the bond? What conditions or alternatives should she consider?
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Angela should not write the bond as proposed because it fails the surety guide on prior FTAs, verifiable income, and collateral equity. Two FTAs in three years is a serious flight indicator, and the defendant has no verified employment for 14 months. Angela should either decline or seek a written underwriting exception from the surety. If she proceeds, she should require a second indemnitor with verified income and clean credit, additional liquid collateral, and a lien payoff or subordination arrangement for the car before accepting the title. She should not count the car at full value or tell the mother the title is free and clear. She should also explain that the premium is earned when the bond is posted and that the indemnitor may owe the full $25,000 if the defendant fails to appear. A payment plan for the premium does not reduce the risk.
3. What documentation and disclosures should Angela complete before any bond is posted?
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Angela should complete a written indemnitor agreement, a collateral receipt itemizing the cash, savings withdrawal, and car title, and a lien search or lender payoff statement for the car. She should document the vehicle valuation with a reliable source, not the mother's estimate. She should provide a written premium quote showing the $2,500 premium and the fact that it is earned and nonrefundable when the bond is posted, plus any authorized fees. She should record the defendant's prior FTAs, employment verification, and the surety's underwriting decision or exception. If she declines, she should document the reason. If she writes, she should give the mother copies of everything, explain the indemnity obligation in plain language, and keep the collateral in a segregated account. The file should show that the decision was based on verified facts, not assumptions.