Utah Department of Administrative Services Division of Administrative Rules

Utah Administrative Code

The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).

NOTE: For a list of rules that have been made effective since March 1, 2014, please see the codification segue page.

NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.


R590. Insurance, Administration.

Rule R590-196. Bail Bond Surety Fee Standards, Collateral Standards, and Disclosure Form.

As in effect on March 1, 2014

Table of Contents

R590-196-1. Purpose.

This rule establishes uniform fee and collateral standards for bail bond surety business in the State of Utah.

R590-196-2. Authority.

This rule is promulgated pursuant to Section 31A-35-104 which requires the commissioner to adopt by rule standards of conduct for bail bond surety business.

R590-196-3. Scope and Applicability.

This rule applies to any person engaged in bail bond surety business.

R590-196-4. Fee Standards.

(1) Initial bail bond fees.

(a) Bail bond premium:

(i) minimum fee: not less than 10% of bond amount;

(ii) maximum fee: not to exceed 20% of bond amount.

(b) Document preparation fee may not exceed $20 per set of forms pertaining to one bail bond.

(c) Credit card fee may not exceed 5% of the amount charged to the credit card.

(2) Additional fees.

(a) These fees are limited to actual and reasonable expenses incurred by the bail bond surety because:

(i) the defendant fails to appear before the court at any designated dates and times;

(ii) the defendant fails to comply with the court order; or

(iii) the defendant or the co-signer fails to comply with the terms of the bail bond agreement and any promissory notes pertaining to that agreement.

(b) Reasonable expense fee for mileage is the Internal Revenue Service standard for business mileage.

(c) Apprehension expenses such as meals, lodging, commercial travel, communications, whether or not the defendant is apprehended, are limited to actual expenses incurred and must be reasonable, i.e., meals at mid-range restaurants, lodging at mid-range hotels, commercial travel in coach class, etc.

(d) Reasonable collateral expense fees:

(i) actual expenses to obtain collateral; and

(ii) storage expenses if in a secured storage area, limited to actual expenses.

(e) A late payment fee of $20 or 5% of the delinquent periodic payment whichever is less.

(f) If a fee is charged by the court or the jail to process a bail bond, the actual fee charged may be passed through to the defendant or the co-signer.

R590-196-5. Collateral Standards.

(1) Collateral may be provided to secure bail bond fees, the face amount of the bail bond issued, or both.

(2) If the bail bond surety accepts the same collateral to secure the bail bond fees and the face amount of the bail bond issued, then, in the event of a failure to pay bail bond fees when due, the collateral may not be converted until the bail bond is exonerated or judgment entered against the surety and the depositor has been given no less than 15 days to pay any bond fees owing.

(3) If the bail bond surety accepts different collateral to secure the bail bond fee and the face amount of the bail bond issued then:

(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 no less than 15 days to make the required payment;

(ii) the collateral securing the face amount of the bail bond issued may not be converted until the bond is exonerated or judgment entered against the surety and the depositor of the collateral has been given no less than 15 days to reimburse the bail bond surety for any amounts owed to the bail bond surety.

(4) The bail bond surety, its agents taking possession of collateral, or both, will hold said collateral as a fiduciary until such time as ownership of the collateral passes to the bail bond surety.

(5) Collateral held as a fiduciary may not be used by the bail bond surety or its agents without the specific written permission of the depositor of the collateral.

(6) Should proceeds from converted collateral exceed the outstanding balance due, the bail bond surety will return the excess to the depositor of the collateral.

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

R590-196-6. Disclosure Form.

The bail bond surety and its agents will use the following disclosure form or a form that contains similar language.

                                                     TABLE

XYZ Bail Bonds Disclosure Form
1234 South 1234 East, Salt Lake City, UT 84444:
801-123-4567 fax: 801-098-7654
Defendant.......................Co-Signer......................
Court...........................Charge.........................
Bond amount $...................Bond number....................
Initial Fees, non-refundable.
....bond premium, maximum: no more than 20%;
    minimum: not less than 10%;                         $......
....document preparation, not to exceed $20
    per set of bond forms.                              $......
....credit card fee, not to exceed 5% of amount
    charged to credit card                              $......
                                   total initial fees   $......

Additional Fees.
     (1)  Limited to actual and reasonable expenses required
because the defendant fails to appear before the court at any
designated times, or fails to comply with the court order, or
fails to comply with the terms of the bail bond agreement or
any promissory notes pertaining to that agreement.  The following
are some reasonable expense fees:
     (i)  reasonable expense fee for mileage is IRS mileage
reimbursement standard for business miles;
     (ii)  reasonable apprehension expense fees include
meals at mid-range restaurants, lodging at mid-range hotels,
transportation at no more than coach fares; and
     (iii)  reasonable collateral expense fees: actual
expenses to obtain collateral and, actual storage expenses,
if collateral is in a secured storage area.
     (2)  A late payment fee of $20 or 5% of the
delinquent periodic payment whichever is less.
     (3)  If a fee is charged by the court or the jail to
process a bail bond, the actual fee charged may be passed
through to the defendant or the co-signer.

Grounds for revocation of bond.
     Should the defendant violate any of the following, the
defendant shall be subject to immediate bond revocation andthe defendant, or the co-signer, or both, shall be subject to
all the costs incurred to return the defendant to the court.

Grounds for revocation include the following:
     (a)  the defendant or co-signer providing materially false
information on bail bond application;
     (b)  the court's increasing the amount of bail beyond sound
underwriting criteria employed by the bail bond agent or bail
bond surety;
     (c)  a material and detrimental change in the collateral
posted by the defendant or one acting on defendant's behalf;
     (d)  the defendant changes their address or telephone
number or employer without giving reasonable notice to the bail
bond agent or bail bond surety;
     (e)  the defendant is arrested for another crime, other
than a minor traffic violation, while on bail;
     (f)  the defendant is back in jail in any jurisdiction and
revocations can be served prior to the defendant being released;
     (g)  failure by the defendant to appear in court at any
appointed times;
     (h)  finding of guilt against the defendant by a court of
competent jurisdiction;
     (i)  a request by the co-signer based on reasons (a)
through (h) above.  Items (a) through (h) pertain to the
defendant; items (a), (c), (e) (g) and (i) pertain to
co-signers, if any.

Collateral.
     The following has been given as collateral to guarantee
all court appearances of the defendant until the bond is
exonerated:
...............................................................
...............................................................
...............................................................
     The following has been given as collateral to guarantee
payment of bond fees:
...............................................................
...............................................................
     In the event judgment is entered against the surety or the
bonding fee is not paid according to the terms of the bail bond
agreement and its promissory note, if any, following written
notice to the undersigned of such judgment or non-payment, the
undersigned authorize XYZ Bail Bonds to convert the appropriate
collateral to collect the judgment or the unpaid bond fees.
Should proceeds from the sale of the appropriate collateral be
insufficient to cover the outstanding balance due, the defendant,
the co-signer, or both, agree to be personally liable for the
difference.  Should proceeds from the sale exceed the
outstanding balance, the difference will be returned to the
depositor of the collateral.  The depositor's signature below
constitutes acknowledgment of a Bill of Sale for the
collateral.  The depositor accepts this agreement as a bill of
sale for the collateral.

     By signing below I certify that I have read and understand
this disclosure form, the bail bond agreement and its
attached promissory note, if any.  I certify under penalty of
perjury that all information given to XYZ Bail Bonds verbally
and in writing on all documents relevant to this bond are true
and accurate. The co-signer agrees that should the co-signer
request XYZ Bail Bonds to revoke the defendant's bond, with or
without probable cause, the co-signer will be responsible to
pay XYZ Bail Bonds and their agents for the time returning
the defendant to jail at the rates stated above in additional
fees.  If requested by the co-signer to revoke the bond
without probable cause, the co-signer will be responsible to
reimburse the defendant his bond fees.

Date..............................Defendant....................
Date..............................Co-signer....................
Date..............................Depositor....................
I,......................................., agent of XYZ Bail
Bonds, certify that I have given a copy of all documents
pertaining to this bail bond agreement to the defendant, the
co-signer, the depositor, or any of the above, at the time and
date said bail bond agreement was executed.
Date....................Bail Bond Agent........................
                                                            

R590-196-7. Penalties.

Violations of this rule are punishable pursuant to Section 31A-2-308.

R590-196-8. Severability.

If any provision or clause of this rule or its application to any person or situation is held invalid, such invalidity shall not affect any other provision or application of this rule which can be given effect without the invalid provision or application, and to this and the provisions of this rule are declared to be severable.

R590-196-9. Enforcement Date.

The commissioner will begin enforcing the revised provision of this rule 45 days from the rule's effective date.

KEY

insurance, bail bonds

Date of Enactment or Last Substantive Amendment

April 14, 2010

Notice of Continuation

December 30, 2009

Authorizing, Implemented, or Interpreted Law

31A-35-104


Additional Information

Contact

For questions regarding the content or application of rules under Title R590, please contact the promulgating agency (Insurance, Administration). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.