Bails Bonds Exam: Questions and Answers on North Carolina Bail Bond Law, Exams of Law

Download Bails Bonds Exam: Questions and Answers on North Carolina Bail Bond Law and more Exams Law in PDF only on Docsity! Bails Bonds Pre-Licensing Exam Questions and Answers What are the 3 areas of bail bond law? - Chapter 15A, Article 26 Chapter 58, Article 71 NC Administrative Code If there is a conflict between the areas of bail bond law, what is the order of authority? - Chapter 15A, Article 26 Chapter 58, Article 71 N.C. Administrative Code What North Carolina agency is in charge of regulating bail bondsmen and runners? - North Carolina Department of Insurance What official is the elected head of the North Carolina Department of Insurance? - Commissioner of Insurance Who is the North Carolina Commissioner of Insurance? - Mike Causey What persons are prohibited from becoming licensed as bail bondsmen or runners? - Sheriff Deputy Sheriff Law Enforcement Officer Attorney Parole Officer Probation Officer Jailer Assistant Jailer Employee of the General Courts of Justice Other public employee assigned to the administration of criminal justice Nor the spouse of such person What are the two restrictions for persons prohibited from becoming bail bondsmen or runners? - Shall not act as an agent for any bail bond company or bail bondsman Shall not have any financial interest, directly or indirectly, in any bail bond business What are the general qualifications for bail bondsmen and runners? - Be 21 years of age or older High School Diploma or GED Be a resident of this state (NC) Have knowledge, training, or experience of sufficient duration and extent to provide the competence necessary to fulfill the responsibilities of a license Have no outstanding bail bond obligations Have on current or prior violations of any provision of Chapter 58 Article 71 or Chapter 15A Article 26 or any similar provision of law of any other state Not in any manner disqualified under the laws of this state or any other state to engage in the bail bond business Hold valid and current N.C. drivers license or N.C. identification card issued by the NCDMV What "proof of residency" documentation is required showing residential address? - Pay stub Utility bill Written lease agreement/contract for purchase Receipt for person property taxes Receipt for real property taxes Monthly or quarterly statement from a financial institution How many documents must an applicant provide to show proof of residency? - At least two What are two offenses for which the Commissioner shall deny an application or revoke a license? - Conviction of a felony Conviction of a misdemeanor drug offense If your application is denied or you fail the exam, how long must you wait before reapplying or re-testing? - One year Bail bond is divided into two parts. What does "bail" and "bond" mean? - Bail is the security (monetary amount) required for the release of a defendant Bond is the obligation assumed by the one who posts bail What is the purpose of a bail bond? - To assure the appearance of the defendant in court What are the consequences of a bail bond? - Forfeiture of bail Order for arrest What is the definition of an accommodation bondsman? - A person who: Shall not charge a fee (money) for posting a bond Shall not receive any consideration (money or anything of value) to keep for personal use as a condition of posting a bond Must show proof that property will cover the amount of the bond May require collateral Is not licensed In what ways can an accommodation bondsman post bonds? - Cash or Property What form is the information on the "conditions of release" transferred to for the release of a defendant? - The Appearance Bond What is the required "identifying information" on a bond? - Name and mailing address of defendant Name and mailing address of accommodation bondsman Name and license number of the professional bondsman/runner Name of the insurer (insurance company) Name, license number and power of appointment number of the surety bondsman What three things shown on a bail bond make it binding? - Before what magistrate or at what court the principal was bound to appear The official before whom bail was entered was legally authorized to take it The amount of the bail is stated After filling out the front of the appearance bond, what must a bondsman do to complete the bond? - Fill out the affidavit on the back of the appearance bond Attach professional bondsman's certification seal or surety bondsman's qualifying power What does the bond affidavit provide information on? - Premium Collateral Who is required to fill out the bond affidavit? - Professional Bondsmen Surety Bondsmen Runners What is the bail bond premium? - The fee you charge for posting a bond What is the maximum bail bond premium that can be charged? - 15% of the face amount of the bond Can a bondsman sign a bond for less than 15%? - Yes, they can even do it for free if they want. What is the requirement if something other than money is taken as bond premium? - The value of the item must be reasonable in relation to the premium charged for the bond If a premium is received or promised, where is the amount of the premium to be listed? - The affidavit on the back of the appearance bond What must be given for any premium received? - Receipt A receipt must be given for any premium received, what are the 7 requirements for a receipt? - Pre-numbered by a printer Used and filed in consecutive numerical order Show name and address of the bail bondsman Show the amount and date paid Show the name of the person accepting the payment Show the total amount of the bond for which the fee is being charged Show the defendant's name If a bond is written on credit or partial credit, what form must be filled out? - Memorandum of Agreement What are the 6 requirements concerning a memorandum of agreement? - Show the amount of premium not paid Show the method and schedule of payments The dates and amounts to be paid Provide a copy of the agreement to the principal upon request Agreement to be signed and dated by the bondsman or runner and the principal at the time the agreement is made Modifications to be in writing, signed, dated, kept on file with copy to principal upon request What are the only two things of value a bondsman can accept for posting a bond? - Premium Collateral What is collateral? - Something of value to indemnity or protect the bondsman in the event of forfeiture What are the types of collateral? - Money or other negotiable instrument Personal property Real property Indemnity agreement How much collateral is a bondsman allowed to take for posting a bond? - Up to 100% of the amount of the bond If collateral is taken, where is the information about the collateral listed? - The affidavit on the back of the appearance bond If collateral is taken, what three things are to be recorded on the bond affidavit? - Name of the person from whom the collateral was received Nature of the collateral Value of the collateral Is a bondsman required to provide a receipt for collateral received on a bond? - Yes If collateral is taken, what is required on the receipt? - Full description and value of the collateral What is a collateral trust account? - A bank account for cash collateral received on bail bonds What are the requirements for holding cash, check, or other negotiable instruments as collateral? - It must be held in a trust account in a North Carolina bank It must be held in a non-interest bearing trust account It must be held separate from any other personal or business account The trust account is for funds collected as collateral on bail bonds only The trust account funds cannot be commingled with any other funds The collateral must be deposited in the trust account within 2 banking days after receipt When may bondsmen share a trust account? - With approval of the Commissioner and working out of the same business office or location What is the requirement for holding collateral such as personal or real property? - It must be maintained and returned in the condition in which it was received What must a bondsman do with collateral if bail is reduced after the bond was posted? - Collateral must be reduced to the reduced liability and any excess shall be returned Execute written amendment to bond affidavit with details of the modification of collateral Furnish the principal and person furnishing collateral or premium a copy of amendment Keep copy of amendment on file in office of the bondsman If bail is reduced after the bond is posted, do you have to return any of the premium? - NO When must collateral be returned? - Within 15 days after final termination of liability on the bond What is the requirement of returning collateral other than cash? - It must be returned in the same condition as requested and received by the bondsman What will a bondsman be guilty of if he or she fails to return collateral that exceeds $1,500? - Class I Felony When can a bondsman keep collateral for unpaid premiums or other expenses incurred on a bond? - NEVER After the Motion to Set Aside Forfeiture has been served, how long does the district attorney or school board have to object to the motion? - 20 days If there is no objection by the district attorney or school board attorney to the motion to set aside forfeiture, how long after the motion has been served will the forfeiture be set aside? - 20 days What must the district attorney or school board attorney fill out if they object to the motion to set aside forfeiture? - Objection and Notice of Hearing Certificate of Service of Objection and Notice of Hearing What must the district attorney and school board attorney do after filling out the "objection" and "certificate of service"? - Serve the "objection" and "certificate of service" on the moving party When will a hearing be scheduled in court if the district attorney or school board attorney objects to the motion to set aside forfeiture? - Not more than 30 days after the objection is filed Where will a hearing be scheduled in court if the district attorney or school board attorney object to the motion to set aside forfeiture? - In the county where the defendant was bonded to appear How many motions to set forfeiture aside are allowed between the "date notice given" and the "final judgment date"? - One What length of time does a bondsman have to petition the court to remit the payment of the bond? - Three years after the judgment of the forfeiture became final What are the two reasons a bondsman might get relief after final judgment? - Notice was not given within 30 days after the date the defendant failed to appear Other extraordinary circumstances exist for which the court would allow relief Within 3 years after final judgment, how many motions to remit the bond are allowed? - One Why would a bondsman be required to pay a bond, even though one or more of the 7 reasons to set aside the forfeiture had been met within the allowed time? - The defendant had already failed to appear twice in the same case before the bond was signed What reasons would the court order monetary sanctions for filing a forfeiture motion? - Not signing the motion Not attaching required documents to the motion Filing fraudulent motions or documents What would the court order as sanction for not signing the forfeiture motion? - 25% of the face amount of the bond What would the court order as sanction for not attaching required documents to the forfeiture motion? - 50% of the face amount of the bond What would the court order as sanction for filing a fraudulent forfeiture motion? - 100% of the face amount of the bond What other actions could the court take for filing a fraudulent forfeiture motion? - Criminal prosecution What U.S. Supreme Court ruling provides authority for the bail bond industry? - Taylor vs Taintor For what purpose can a bondsman arrest a defendant? - For the purpose of surrender Before forfeiture of a bond, what two places can a bondsman surrender the defendant? - To the sheriff of the county where the defendant was bonded to appear To the sheriff of the county where the defendant was bonded (from) How long does a bondsman have to return the full premium if the principal is surrendered? - 72 hours What are the seven reasons a defendant can be surrendered without return of the bond premium? - Fails to pay the premium or premium payment Changes address without notifying surety of change Physically hide from surety Leaves the State without permission of surety Violates any order of the court Fails to disclose or provides false information regarding court matters Provides incorrect or false personal identification information After forfeiture of a bond, where can the bondsman surrender the principal? - To the sheriff of the county where the defendant was bonded to appear To the sheriff of the county where the defendant was bonded (from) To the sheriff of any county where the defendant is incarcerated