Deborah is charged with a high-level felony offense for which a judicial official imposes a $1,000,000 secured bond. Deborah—not having the cash on hand or a mortgage sufficient to cover the bond—wants to solicit the assistance of a surety who can execute the bond on her behalf.
This post briefly describes the different types of sureties for a criminal appearance bond, the sureties’ respective roles in executing such a bond, and the statutory limitations on bail bond suretyship.
Bail Bonds, Generally
When a person is arrested, a law enforcement officer must take that person before a judicial official to have conditions of release set. G.S. 15A-511. The pretrial release statutes require, in most cases, that at least one of four types of release be imposed before a defendant can be released. G.S. 15A-534(a). Among these types of release are unsecured bonds and secured bonds, known collectively as appearance bonds.
An appearance bond, or bail bond, is an undertaking or promise by a principal (the defendant) to appear in court as required, accompanied by an agreement that, if the defendant does not appear, a stated amount of bail will be forfeited to the State. G.S. 15A-531(4). Bail bonds may be either secured or unsecured. An unsecured bond holds a defendant responsible for breach of the bond requirements but does not require a defendant to pay the amount of the bond in advance or otherwise demonstrate solvency for the amount of the bond in order to be released from jail.
A secured bond, on the other hand, is “backed by some type of security.” Pursuant to G.S. 15A-534(a)(4), one of the ways a bail bond may be secured is “by at least one solvent surety.” A surety is one who, along with the principal (again, the defendant), is liable for the amount of the bail bond upon forfeiture of bail. G.S. 58-71-1(10).
Types of Sureties
There are three types of sureties recognized under North Carolina law:
- A professional bondsman, when a bail bond is executed by a professional bondsman or by a runner on behalf of a professional bondsman.
- An insurance company, when a bail bond is executed by a bail agent on behalf of an insurance company.
- An accommodation bondsman. G.S. 15A-531(8).
Professional Bondsmen and Runners
A professional bondsman is a person who
- is approved and licensed by the Commissioner of Insurance (Commissioner) under G.S. Chapter 58, Article 71,
- pledges cash or approved securities with the Commissioner as security for bail bonds written in connection with a judicial proceeding, and
- receives or is promised money or other things of value for writing the bond. G.S. 15A-531(7); 58-71-1(8).
A professional bondsman may employ “runners” who, among other things, can execute bonds on the bondsman’s behalf. G.S. 58-71-1(9). A runner is not a surety and is not personally liable for forfeiture of any bond that they execute. Rather, the runner executes bail bonds on behalf of a professional bondsman, who is the surety. See G.S. 15A-531(8). However, although a runner is not personally liable for the amount of the bond in the same manner as the professional bondsman and the defendant, the runner’s authority to execute subsequent bonds will be suspended in the event of a final judgment of forfeiture for a bond that the runner executed. See G.S. 15A-544.7(d). This prohibition remains in place until the judgment is satisfied in full. Id.
Professional bail bonding businesses can often be found in close proximity to a detention facility or courthouse. If Deborah wanted to employ a professional bondsman to execute her bond, she would have to pay the bondsman a premium of up to $150,000 (15% of the bond). See G.S. 58‑71‑95(5). In exchange, the professional bondsman (or a runner employed by the bondsman) executes the bond, making both the bondsman and Deborah liable for the full $1,000,000 in the event of forfeiture.
Insurance Company Through a Bail Agent
Insurance companies include any domestic, foreign, or alien surety company that has qualified under G.S. Chapter 58 to transact bail bond business in North Carolina. See G.S. 15A-531(6). An insurance company executes bonds only through its bail agents. A bail agent is any person who
- is licensed by the Commissioner of Insurance as a “surety bondsman” under G.S. Chapter 58, Article 71,
- is appointed by an insurance company by power of attorney to execute or countersign bail bonds for the insurance company in connection with judicial proceedings, and
- receives or is promised consideration for writing the bond. G.S. 15A-531(3); 58-71-1(11).
A bail agent is not a surety and is not personally liable for forfeiture of any bond that they execute. Rather, the bail agent executes bonds on behalf of an insurance company, which is the surety. See G.S. 15A-531(8). However, although a bail agent is not personally liable for the amount of the bond in the same manner as the insurance company and the defendant, the agent’s authority to execute subsequent bonds will be suspended in the event of a final judgment of forfeiture for a bond that the agent executed. See G.S. 15A-544.7(d). This prohibition remains in place until the judgment is satisfied in full. Id.
An insurance company, unlike a professional bondsman, is not statutorily limited in the amount it may post as bond for a specific defendant. In the event that Deborah cannot find a professional bondsman company that is able to execute her bond, she may have luck employing a bail agent. Deborah would have to pay the bail agent a premium of up to $150,000 (15% of the bond). See G.S. 58‑71‑95(5). In exchange, the bail agent executes the bond, making the insurance company and Deborah liable for the full $1,000,000 in the event of forfeiture.
A person can be licensed as a bail agent for any number of insurance companies and may simultaneously be licensed as a professional bondsman or a runner. See G.S. 58-71-82. Accordingly, a person who is dually licensed may be able to execute Deborah’s bond as a bail agent on behalf of an insurance company rather than as a professional bondsman or a runner.
Accommodation Bondsman
An accommodation bondsman is a natural person who
- is at least 18 years old;
- is a bona fide resident of North Carolina;
- aside from love and affection and release of the defendant, receives no compensation for signing the bond; and
- provides satisfactory evidence of ownership, value, and marketability of real or personal property to the extent necessary to reasonably satisfy the official taking the bond that the property will be sufficient to assure full payment of the bail bond in the event of a breach. G.S. 15A-531(1).
There is no licensing requirement to become an accommodation bondsman. These sureties are often friends, family members, and associates of the defendant whose bond they are executing. A member of Deborah’s family who meets the qualifications listed above could execute Deborah’s bond by paying the full $1,000,000 in cash or by demonstrating sufficient solvency to cover the full amount of the bond in the event of forfeiture.
Limitations on Bail Bond Suretyship
Certain public employees, officials, and professionals may serve as sureties on a bail bond only for a person in their immediate family. Those people include:
- sheriff,
- deputy sheriff,
- other law enforcement officer,
- judicial official,
- attorney,
- parole officer,
- probation officer,
- jailer,
- assistant jailer,
- employee of the General Court of Justice, or
- other public employee assigned to duties relating to the administration of criminal justice. G.S. 15A-541.
The statute does not define the term “immediate family.” A different statute, G.S. 58-71-105, sets forth an identical restriction on suretyship. Though the latter statute does not use the term “immediate family,” it expressly permits suretyship on a bail bond of the person’s spouse, parent, brother, sister, child, or descendant.
The listed professionals are also prohibited from (i) acting as an agent for any bonding company or bail bondsman and (ii) having an interest, directly or indirectly, in the financial affairs of any firm or corporation whose principal business is acting as a bail bondsman. A violation of these prohibitions, including signing as a surety on a bail bond outside the scope of the limitation, is a Class 2 misdemeanor. G.S. 15A-541; 58-71-195.
Other Prohibitions
A person who merely agrees to indemnify a bondsman on a bail bond is not considered a surety. State v. Gettleman, 275 N.C. App. 260, 277 (2020). As such, it is a Class 1 misdemeanor for a person who is not licensed as a professional bondsman, bail agent, or runner to act in such a capacity or to perform any of the functions, duties, or powers prescribed to those licensed professionals. See G.S. 58‑71‑40(a); 58-71-185.
Over the next several months, I will be digging more into the law on bail bonds, sureties, and forfeitures. In the meantime, please feel free to email me with questions on these matters (bwilliams@sog.unc.edu).
