TITLE 41

INSURANCE

CHAPTER 10

PRODUCER LICENSING

41-1043.  Collateral. (1) A bail agent may accept collateral in connection with the bail bond transaction if the collateral is not excessive in relation to the face amount of the bond.

(2)  All collateral received by a bail agent is received in a fiduciary capacity.

(a)  Collateral received in the form of cash must be deposited and maintained in a trust account that is separate and apart from any other funds or assets of the bail agent.

(b)  Collateral other than cash must be maintained in a separate and secure location apart from the assets of the bail agent.

(3)  Collateral received must be returned to the person who deposited the collateral with the bail agent within fourteen (14) days of the date notice is received that the obligation, the satisfaction of which was secured by collateral, is discharged.

(4)  A copy of the order of the court wherein the bail or undertaking was ordered exonerated shall be deemed prima facie evidence of exoneration or termination of the liability.

(5)  If a bail agent accepts collateral, the bail agent shall give a written receipt for the collateral to the person from whom the collateral was received. The receipt shall include a full and detailed accounting of the collateral received.

History:

[41-1043, added 2003, ch. 104, sec. 7, p. 330.]