How Is a Surety Bond Different From a Cash Bond?

Surety bonds and cash bonds can both be used to get someone out of jail, but they work differently. These are some of the similarities and differences between surety and cash bonds.

What Is a Surety Bond?
A surety bond is an instrument that is used to ensure that a contract is completed if the contractor defaults. In the context of bail, a surety bond is like a loan used to get out of jail. The contractor is the surety bondsman Yadkin NC who provides the bond. The bondsman posts bail for you in exchange for a fee. When you show up for your court date, the bondsman gets the money back.

What Is a Cash Bond?
When you post a cash bond, you give the court cash to cover the full bail amount and the court hangs on to it until you fulfill your obligation to show up for your court date. If you show up, you get your cash back. If you don’t, the court keeps it.

Who Is Taking the Risk?
The primary risk of posting bail is that the defendant may not show up for the court date. When that happens the court keeps the bail money. With a cash bond, whoever puts up the bail money is taking the risk. With a surety bond, both the person purchasing the bond and the bondsman are taking a risk. Defendants usually have to provide collateral to secure a bond. If the defendant doesn’t show up for court, then the bondsman doesn’t get the bail money back and will keep the collateral to cover that loss.

The primary difference between the two bonds is the amount of money the defendant pays upfront and who is taking the risk. A cash bond requires a larger upfront payment and all the risk is on the person paying the bail. A surety bond requires less upfront money and spreads the risk between the defendant and the bondsman.