High-Risk Bond With Thin Collateral
Andre, age 19, is charged with carjacking and is being held on a $100,000 surety bond. He has two pending failures to appear on misdemeanor cases, no verified home address, and has been staying at a motel. His aunt offers $5,000 cash and a lien on a 2008 car worth about $8,000. She says Andre has a job starting in two weeks and “has turned his life around.” He has no passport and a prior probation violation. Your surety’s underwriting guide requires collateral “commensurate with risk” and permits bonds up to $100,000 only with manager approval. The premium would be $10,000, and you need the commission. The aunt pressures you to write the bond tonight because the arraignment is tomorrow.
1. Analyze the underwriting risk and decide whether to write the bond as proposed.
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The risk factors are substantial: a violent felony, two pending FTAs, no verified residence, a motel address, a prior probation violation, and only $13,000 in proposed collateral against a $100,000 exposure. The aunt’s statement about a future job is not verified, and a 2008 car with a lien may be worth less than stated. The guide requires manager approval and collateral commensurate with risk, so writing tonight without approval would exceed authority. The commission is not a legitimate reason to ignore the guidelines. The correct decision is to decline as proposed or submit a complete package to the manager with a recommendation for denial or for much stronger conditions. A bail agent may decline a bond; the agent must not discriminate based on protected characteristics, but risk-based underwriting is permitted.
2. If management wants to proceed, what conditions and documentation should be required?
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Management should require a verified residence, a co-signer with documented income and assets, and a realistic collateral package. The aunt’s cash and car may be accepted only with a proper security agreement, title search, lien recording, and receipt. The agency should verify the job with the employer, not just the aunt, and confirm the court’s release conditions. A check-in schedule, curfew, transportation plan, and written reminders of court dates can reduce risk. The agent should document the FTA history, the manager’s approval, the collateral valuation, and the defendant’s ties to the community. If the defendant cannot meet the conditions, the agency should not post the bond and should tell the family promptly so they can seek other options.
3. What intake and screening mistakes should the agent avoid in this scenario?
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The agent should avoid relying on unverified family statements, promising a bond before underwriting is complete, and using the arraignment deadline as pressure to skip approval. The agent should not accept a car lien without checking ownership and existing liens, and should not take cash without a receipt. Screening should separate the defendant’s criminal history from irrelevant personal characteristics and should focus on flight risk, community ties, and collateral. The agent should also avoid giving legal advice about the carjacking charge or telling the defendant what to say in court. If the bond is declined, the agent should not disclose the defendant’s information to others or solicit business from the jail in a prohibited manner.