North Carolina Bail Bonds Practice Exam

What must a bondsman do if the bail is reduced?

1. Return all collateral

2. Only keep the cash amount

3. Reduce collateral to the same extent as liability

4. Increase collateral requirements

The correct answer is: Reduce collateral to the same extent as liability

When a bail is reduced, the bondsman has an obligation to adjust the collateral in accordance with the new bail amount. This means that if the bail amount decreases, the bondsman must reduce the collateral to reflect this change proportionately. The goal is to ensure that the value of the collateral is commensurate with the liability that the bondsman assumes for the defendant's release. This practice is rooted in the principle of underwriting the risk involved. The bondsman guarantees the defendant's appearance in court, and the collateral serves as a safeguard against the financial loss if the defendant fails to appear. When the risk diminishes due to a lower bail amount, it is logical and fair for the bondsman to reduce the collateral accordingly, ensuring that it matches the reduced liability while also respecting the financial interests of the parties involved. Adjusting the collateral keeps the arrangement equitable and maintains the bondsman's interests without imposing unnecessary burdens on the defendant or their supporters. Thus, reducing collateral to correspond with the lowered bail value is the appropriate and correct action for the bondsman to take.