N.J. Admin. Code § 11:1-40.3

Current through Register Vol. 56, No. 19, October 7, 2024

Section 11:1-40.3 - Conditions for imposition of fugitive fees

(a) By written contract between a surety and an indemnitor, subject to (b) below, a surety may charge an indemnitor a fugitive fee, provided, however, that such a fee shall not exceed:

1. The greater of $ 1,500 or 10 percent of the amount of the surety bail bond for a fugitive who is either apprehended or located while in custody within the State of New Jersey; or

2. The greater of $ 1,500 or 20 percent of the amount of the surety bail bond for a fugitive who is either apprehended or located while in custody outside the State of New Jersey.

(b) Notwithstanding any computation to the contrary made pursuant to (a) above, in no event shall an indemnitor's obligation to pay a fugitive fee exceed 110 percent of the face amount of the surety bail bond.

(c) Any contract seeking to hold an indemnitor financially responsible for a fugitive fee, and any legal action to collect a fugitive fee, shall be in the name of the surety, and not in the name of an insurance producer, regardless of whether said producer sold the underlying surety bail bond. Any such contract shall be signed by the indemnitor and a duly authorized officer of the surety, with the name and title of said officer clearly set forth in the contract.

(d) Within the meaning of (a) and (b) above, a fugitive fee shall not include the amount of any bail forfeiture assessed by a court, and shall not include any attorneys fees, but may include filing fees and other court-imposed costs related to an application for remittance of the previously forfeited bond. The rights and obligations of the surety company and the indemnitor with respect to the amount of any bail forfeiture assessed by a court shall be governed by the provisions of the surety bond agreement, which provisions shall not be inconsistent with any of the provisions of this subchapter.

N.J. Admin. Code § 11:1-40.3