La. Admin. Code tit. 37 § XIII-18713

Current through Register Vol. 50, No. 6, June 20, 2024

Section XIII-18713 - Requirements for Collateral

A. A bail bond producer or surety that accepts collateral as security for a bail bond shall comply with all of the following requirements:

1. For a bail bond producer or surety to accept collateral, the person pledging the collateral must have voluntarily pledged it at the time of the bail bond transaction and execution of the written collateral agreement. The intent to pledge collateral to secure the defendant's release must be clearly stated and verified by the signature of the person pledging the collateral.

2. The collateral shall be received and held in the surety's name by the bail bond producer or surety in a fiduciary capacity.

3. The collateral must be reasonable in relation to the face amount of the bond, and the collateral's value must be determined before the collateral agreement is executed.

4. The bail bond producer or surety shall keep and maintain collateral separate and apart from any other funds or assets.

5. It shall be a prohibited act pursuant to R.S. 22:1562 for any bail bond producer or surety to use any collateral for personal benefit or gain, or to fail to return the collateral to the person pledging it in the same condition as received by the bail bond producer or surety.

6. The bail bond producer or surety shall provide the person pledging the collateral a written receipt for the collateral received. The written receipt must include a detailed and specific description of the collateral, the full name of the person pledging the collateral, the full name of the defendant, the date of the bond, the approximate value of any non-cash collateral, and the specific amount of cash or other collateral.

7. If the parties to the collateral agreement subsequently agree to substitute other things of value as collateral, the substitution must be reflected in a new written collateral agreement, and the bail bond producer or surety must issue a new written receipt to the person pledging the substituted collateral.

8. The bail bond producer or surety shall return the collateral to the person who pledged the collateral not more than 30 days after the bail obligation is discharged in accordance with article 331 of the Code of Criminal Procedure.

B. If a forfeiture of the bail bond occurs, the bail bond producer or surety shall provide the person who pledged the collateral 10 days written notice from the date that a judgment of bond forfeiture is signed of the bail bond producer or surety's intent to take possession of the collateral deposit to satisfy the forfeiture. The notice shall be sent by certified mail, return receipt requested, to the last known address of the person who pledged the collateral. If the collateral received by a bail bond producer is in excess of the bail forfeited, the bail bond producer or surety shall return the excess to the person who pledged the collateral within 30 days from the date a judgment of bond forfeiture is satisfied, less any verifiable and appropriate administrative expenses specifically provided for in Section 18715 below.

La. Admin. Code tit. 37, § XIII-18713

Promulgated by the Department of Insurance, Office of the Commissioner, LR 482986 (12/1/2022).

AUTHORITY NOTE: Promulgated in accordance with R.S. 22:2, 22:11, 22:1542, 22:1547, 22:1554, 22:1562, C.Cr.P. art 311, et seq, and the Administrative Procedure Act, R.S. 49:950, et seq.