• Precious metals may be used as collateral in a bail bond.gold image by Raimundas from Fotolia.com
  
  In California and other U.S. jurisdictions, criminal defendants can stay out of jail until the verdict by posting bail. A judge determines the amount, which can be paid either in full or through a bail bond. In the latter case, the defendant, his friends or family usually pays 10% of the bail amount to a bail bondsman, who furnishes the remainder of the money to the court. Because a defendant could flee and cause the bondsman to forfeit bail, the bondsman may demand collateral as surety.
  
  

Forms of Collateral

• Bail agents usually like to work with cash or credit as collateral. However, some may be willing to accept other forms such as real estate, precious metals or jewelry. In any case, they will want something that can be sold quickly and not fluctuate dramatically in value. Keep in mind there is no rule that the collateral equal the value of the bail. For instance, if a bondsman asks you to put up your $400,000 home for a $10,000 bond, it may not be a good deal but is not prohibited by law. In that case, finding a more reasonable bondsman would be the best solution.
  
  

Bail Reduction

• In some cases, a court may reduce the amount of required bail. If bond has already been posted, the bail agreement must be changed to reflect the reduced exposure of the bail agent. This amended contract is known as a reduced renewal premium. Bear in mind a reduction will have no effect on the original 10% premium a bondsman has charged to post bail.
  
  

Return of Collateral

• A bondsman must issue a fully executed and notarized reconveyance of title, a certificate of discharge or a full release against any collateral no more than 30 days after exoneration of the bail bond. The date of exoneration is determined by the court but usually occurs at the end of trial if there is no appeal. In addition, the bondsman must also return any note and deed of trust, security agreement or other instrument used as collateral. If a bail agent fails to do so, the owner of the collateral may petition the court to issue an enforcement order. If the bail agent does not comply, he or she will be liable for all damages sustained by this violation as well as statutory damages of $300.