The Structure of the Bail Bond Contract

A Bail Bond in New Jersey is executed with an instrument known as a recognanze. It is a 3 way contract between the State of New Jersey, the surety and the defendant. The bail bond contract calls for the surety to produce the defendant to the New Jersey court each and every time he is called to appear. The contract becomes in breach if the defendant fails to appear. Under NJ contract law, the bail bond is forfeited and must be paid to the court. There are provisions that allow for a timely surrender of the defendant (75 days). There will then be court costs paid to the New Jersey bail fund and attorney fees incurred. The bail can not be reinstated, nor be any changes to the bail with out the approval of all 3 parties to the contract.

Definition: bail bond n. a bond provided by an insurance company (the surety) by power of attorney to a bail bondsman acting as an agent for the company, to secure the release from jail of an accused defendant pending trial. The usual charge or "premium" is 10 percent of the bail (e.g. $1,000.00 for a $10,000.00 bond). At times the defendant or co-signer must pledge collateral such as a deed of trust or mortgage on real property.  Upon acquittal, conviction, or other conclusion of the case, the bail bond is "exonerated" and returned to the surety. If the person who has been bailed out fails to appear in court, the bond funds will be forfeit unless the defendant is surrendered to the court.

The way it really works:  As stated above however, the bail bondsman signs a contract with the insurance company whereas, The bondsman holds the insurance company harmless. Meaning, if the defendant fails to appear in court and is not surrendered in 75 days, the bondsman is to pay the court the full amount of the bail bond. If the bondsman does not pay, the insurance company will pay the court and then go after the assets of the bail bondsman (most bondsman put up their own cash or real property with the insurance company as collateral). In turn, the co-signer or "indemnitor" will sign like documents holding the bondsman harmless and pledge to pay the bail amount if forfeited. (see detailed bail bond information).