R590. Insurance, Administration. (Changes
Effective 2-10-05)
R590-196. Bail Bond Surety Fee Standards, Collateral Standards, and Disclosure
Form.
R590-196-1. Purpose.
This rule establishes uniform fee and collateral standards for bail bond
surety business in the State of Utah.
R590-196-2. Authority.
This rule is promulgated pursuant to Section 31A-35-104 which requires the
commissioner to adopt by rule standards of conduct for bail bond surety
business.
R590-196-3. Scope and Applicability.
This rule applies to any person engaged in bail bond surety business.
R590-196-4. Fee Standards.
(1) Initial bail bond fees.
(a) Bail bond premium:
(i) minimum fee: none;
(ii) maximum fee: not to exceed 20% of bond amount.
(b) Document preparation fee may not exceed $20 per set of forms
pertaining to one bail bond.
(c) Credit card fee may not exceed 5% of the amount charged to the credit
card.
(2) Other fees.
(a) These fees are limited to actual and reasonable expenses incurred by
the bail bond surety because:
(i) the defendant fails to appear before the court at any designated dates
and times;
(ii) the defendant fails to comply with the court order; or
(iii) the defendant or the co-signer fails to comply with the terms of the
bail bond agreement and any promissory notes pertaining to that agreement.
(b) Reasonable expense fee for mileage is the Internal Revenue Service
standard for business mileage.
(c) Apprehension expenses such as meals, lodging, commercial travel,
communications, whether or not the defendant is apprehended, are limited to
actual expenses incurred and must be reasonable, i.e., meals at mid-range
restaurants, lodging at mid-range hotels, commercial travel in coach class, etc.
(d) Reasonable collateral expense fees:
(i) actual expenses to obtain collateral; and
(ii) storage expenses if in a secured storage area, limited to actual
expenses.
(e) A late payment fee of $20.00 or 5% of the delinquent periodic
payment which ever is less.
R590-196-5. Collateral Standards.
(1) Collateral may be provided to secure bail bond fees, the face amount
of the bail bond issued, or both.
(2) If the bail bond surety accepts the same collateral to secure the bail
bond fees and the face amount of the bail bond issued, then, in the event of a
failure to pay bail bond fees when due, the collateral may not be converted
until the bail bond is exonerated or judgment entered against the surety and the
depositor has been given no less than 15 days to pay any bond fees owing.
(3) If the bail bond surety accepts different collateral to secure the
bail bond fee and the face amount of the bail bond issued then:
(i) the collateral securing the bail bond fees may not be converted until
payment has been defaulted under the terms of the promissory note for those
fees, and the depositor of the collateral has been given no less than 15 days to
make the required payment;
(ii) the collateral securing the face amount of the bail bond issued may
not be converted until the bond is exonerated or judgment entered against the
surety and the depositor of the collateral has been given no less than 15 days
to reimburse the bail bond surety for any amounts owed to the bail bond surety.
(4) The bail bond surety, its agents taking possession of collateral, or
both, will hold said collateral as a fiduciary until such time as ownership of
the collateral passes to the bail bond surety.
(5) Collateral held as a fiduciary may not be used by the bail bond surety
or its agents without the specific written permission of the depositor of the
collateral.
(6) Should proceeds from converted collateral exceed the outstanding
balance due, the bail bond surety will return the excess to the depositor of the
collateral.
(7) Notice under the rule shall be deemed proper if it is sent via first
class mail to the address provided by the depositor of the collateral.
R590-196-6. Disclosure Form.
The bail bond surety and its agents will use the following disclosure form
or a form that contains similar language.
TABLE
XYZ Bail Bonds Disclosure Form
1234 South 1234 East, Salt Lake City, UT 84444:
801-123-4567 fax: 801-098-7654
Defendant.......................Co-Signer......................
Court...........................Charge.........................
Bond amount $...................Bond number....................
Initial Fees, non-refundable.
....bond premium, maximum: no more than 20%;
minimum: none.
$......
....document preparation, not to exceed $20
per set of bond forms.
$......
....credit card fee, not to exceed 5% of amount
charged to credit card
$......
total
initial fees
$......
Additional Fees.
Limited to actual and reasonable expenses required because the defendant
fails to appear before the court at any designated times, or fails to comply
with the court order, or fails to comply with the terms of the bail bond
agreement or any promissory notes pertaining to that agreement. The following
are some reasonable expense fees:
(1) reasonable expense fee for mileage is IRS mileage reimbursement
standard for business miles;
(2) reasonable apprehension expense fees include meals at mid-range
restaurants, lodging at mid-range hotels, transportation at no more than coach
fares; and
(3) reasonable collateral expense fees: actual expenses to obtain
collateral and, actual storage expenses, if collateral is in a secured storage
area.
(4) A late payment fee of $20.00 or 5% of the delinquent periodic
payment which ever is less.
Grounds for revocation of bond.
Should the defendant violate any of the following, the defendant shall be
subject to immediate bond revocation and the defendant, or the co-signer, or
both, shall be subject to all the costs incurred to return the defendant to the
court. Grounds for revocation include the following:
(a) the defendant or co-signer providing materially false information on
bail bond application;
(b) the court's increasing the amount of bail beyond sound underwriting
criteria employed by the bail bond agent or bail bond surety;
(c) a material and detrimental change in the collateral posted by the
defendant or one acting on defendant's behalf;
(d) the defendant changes their address or telephone number or employer
without giving reasonable notice to the bail bond agent or bail bond surety;
(e) the defendant is arrested for another crime, other than a minor
traffic violation, while on bail;
(f) the defendant is back in jail in any jurisdiction and revocations can
be served prior to the defendant being released;
(g) failure by the defendant to appear in court at any appointed times;
(h) finding of guilt against the defendant by a court of competent
jurisdiction;
(i) a request by the co-signer based on reasons (a) through (h) above.
Items (a) through (h) pertain to the defendant; items (a), (c), (e) (g) and (i)
pertain to co-signers, if any.
Collateral.
The following has been given as collateral to guarantee all court
appearances of the defendant until
the bond is exonerated:
............................................................................................................................................................
The following has been given as collateral to guarantee payment of bond
fees:
.............................................................................
In the event judgment is entered against the surety or the bonding fee is
not paid according to the terms of the bail bond agreement and its promissory
note, if any, following written notice to the undersigned of such judgment or
non-payment, the undersigned authorize XYZ Bail Bonds to convert the appropriate
collateral to collect the judgment or the unpaid bond fees. Should proceeds
from the sale of the appropriate collateral be insufficient to cover the
outstanding balance due, the defendant, the co-signer, or both, agree to be
personally liable for the difference. Should proceeds from the sale exceed the
outstanding balance, the difference will be returned to the depositor of the
collateral. The depositor's signature below constitutes acknowledgment of a
Bill of Sale for the collateral. The depositor accepts this agreement as a bill
of sale for the collateral.
By signing below I certify that I have
read and understand this disclosure form, the bail bond agreement and its
attached promissory note, if any. I certify under penalty of perjury that all
information given to XYZ Bail Bonds verbally and in writing on all documents
relevant to this bond are true and accurate. The co-signer agrees that should
the co-signer request XYZ Bail Bonds to revoke the defendant's bond, with or
without probable cause, the co-signer will be responsible to pay XYZ Bail Bonds
and their agents for the time returning the defendant to jail at the rates
stated above in additional fees. If requested by the co-signer to revoke the
bond without probable cause, the co-signer will be responsible to reimburse the
defendant his bond fees.
Date..............................Defendant....................
Date..............................Co-signer....................
Date..............................Depositor....................
I,......................................., agent of XYZ Bail Bonds, certify that
I have given a copy of all documents pertaining to this bail bond agreement to
the defendant, the co-signer, the depositor, or any of the above, at the time
and date said bail bond agreement was executed.
Date....................Bail Bond Agent........................
R590-196-7. Penalties.
Violations of this rule are punishable pursuant to Section 31A-2-308.
R590-196-8. Severability.
If any provision or clause of this rule or its application to any person or
situation is held invalid, such invalidity shall not affect any other provision
or application of this rule which can be given effect without the invalid
provision or application, and to this and the provisions of this rule are
declared to be severable.
R590-196-9. Enforcement Date.
The commissioner will
begin enforcing the revised provision of this rule 45 days from the rule’s
effective date.
KEY: insurance
2005
31A-35-104
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