Utah Admin. Code 590-196-5

Current through Bulletin 2024-12, June 15, 2024

Section R590-196-5 - Collateral Standards

(1) Collateral may be provided to:

(a) secure bail bond fees ;

(b) secure the face amount of a bail bond ; or

(c) both.

(2) If a surety insurer or a bail bond agency accepts the same collateral to secure the bail bond fee and the face amount of a bail bond , the collateral may not be converted until the bail bond is exonerated or judgment entered against the surety insurer or bail bond agency and the depositor has been given at least 15 days to pay any bail bond fees owing.

(3) If a surety insurer or bail bond agency accepts different collateral to secure the bail bond fee and the face amount of a bail bond :

(i) the collateral securing the bail bond fees may not be converted until payment has been defaulted under the terms of the promissory note for those fees, and the depositor of the collateral has been given at least 15 days to make the required payment;

(ii) the collateral securing the face amount of the bail bond may not be converted until the bail bond is exonerated or judgment entered against the surety insurer or bail bond agency and the depositor of the collateral has been given at least 15 days to reimburse the surety insurer or bail bond agency for any amounts owed to the surety insurer or bail bond agency.

(4) A surety insurer, a bail bond agency, or a bail bond producer taking possession of collateral shall hold the collateral as a fiduciary until ownership of the collateral passes to the surety insurer or bail bond agency.

(5) Collateral held may not be used by a surety insurer, a bail bond agency, or a bail bond producer without the specific written permission of the depositor of the collateral.

(6) If proceeds from converted collateral exceed the outstanding balance due, the surety insurer or bail bond agency shall return the excess proceeds to the depositor of the collateral.

(7) Notice under this rule is proper if sent via first class mail to the address provided by the depositor of the collateral.

Utah Admin. Code R590-196-5

Amended by Utah State Bulletin Number 2022-12, effective 6/7/2022