North Carolina Administrative Code › Title 11 - INSURANCE › Chapter 13 - AGENT SERVICES DIVISION - NON-INSURANCE ENTITIES › Section .0500 - BAIL BONDSMEN AND RUNNERS › Section 13 .0512 - COLLATERAL SECURITY REQUIRED BY BONDSMEN

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The
				collateral security required by bail bondsmen shall be reasonable in relation
				to the amount of the bond in that any collateral security (including personal
				property, real property, indemnity agreement and guarantee) received by such
				licensee shall not, in the aggregate, exceed the amount of the bond.
(b) Any collateral security shall be returned
				to the person who deposited it with the bail bondsman immediately after the
				obligation, the satisfaction of which was secured by the collateral, is
				discharged.
(c) Any bail bondsman
				or runner who receives collateral security shall hold such collateral security
				in trust. No indemnity agreement or other security received as collateral
				security for a bond shall contain any provision whereby any liability or
				obligation under such agreement extends beyond the termination of liability
				under the bond.
(d) If the
				bondsman's liability is reduced at any time and for any reason, the collateral
				security and all obligations under collateral indemnity agreements or
				guarantees shall be reduced to the same extent that the liability under the
				bond was reduced, and any excess thereof shall be immediately returned to the
				depositor of the security.
(e) No
				indemnity agreement or other security agreement taken as collateral for bonds
				shall include any provision for the payment of interest or other additional
				fees or charges.
(f) All persons
				who sign any type of indemnity agreement or other type of security agreement to
				be used as collateral shall be furnished by the bondsman or runner with a copy
				of such agreement.
(g) The
				provisions of this Section relating to indemnity agreements or other security
				agreements apply to all such agreements whether set forth on the face of the
				bond or contained in a separate agreement.
(h) All indemnity agreements or other
				security agreements shall be considered as collateral security and shall be
				listed and described on the form provided by the Administrative Office of the
				Courts (Form AOC-CR-201 or its successor) entitled "Appearance Bond for
				Pretrial Release."
(i) Upon any
				modification or alteration of the collateral security, the bondsman shall
				comply with the provisions of 11 North Carolina Administrative Code 13
				.0513.
(j) All agreements and
				contracts with defendants or anyone on behalf of the defendant, shall have a
				form number and the license number of the bail bondsman printed thereon and
				shall be submitted to the Department for approval according to the standards in
				these Rules. No such agreements or contracts shall be used by the licensee
				until written approval has been given by the Department.
Authority
				  G.S.
				  58-2-40;
				  58-71-5(a);
				  58-71-95;
				  58-71-100;
Eff. August
				  1, 1976;
Readopted Eff. January 1, 1978;
Amended Eff.
				  March 1, 2011; October 1, 2010; September 14, 1978;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. June 25,
				  2016.