Need a surety bond? Many people do not know what a surety bond is and may be confused when told that they need one. Read on to find out more about what surety bonds are, why people use surety bonds, and the steps to get surety bonds in Schenectady NY.
What Is a Surety Bond?
A surety bond is a three-party contract. The surety promises to pay money if one party, the principal, fails to meet its obligations to a second party, the obligee. A surety may also be known as a guarantor because the surety’s role is to guarantee that the principal meets its obligations to the obligee.
When Do People Use Surety Bonds?
There are several scenarios when surety bonds are useful, especially in business. Most individuals do not employ sureties for their everyday transactions. For many people, the only exception to this is title agencies, which act as sureties to guarantee titles. However, some individuals seeking pre-trial release from jail will need to employ the services of a surety to guarantee their bail. These sureties are known as bail bondsmen and provide sureties for a very specific purpose.
How Is a Bail Bondsman a Surety?
Criminal defendants may obtain pre-trial release through bail. Bail is the cash amount the court requires to release a defendant until their trial is completed. If a defendant is unable to pay the full amount of cash bail, he or she can hire a surety known as a bail bondsman. For a fee, usually a percentage of the cash bail amount, the bail bondsman promises the court that if the defendant fails to appear at trial or follow other conditions of his bail, then the bondsman will pay the court the full amount of the cash bail.
Looking For a Surety?
Need a bail bond? Sometimes it can be difficult to know whether or not a surety will be required for payment of a bond or to help get a defendant released. Fortunately, bail bondsmen are familiar with the process and can answer questions about it. Visit us to find out more about surety bonds in Schenectady NY.
