Generally, a bond is an agreement between an issuer and a holder. In the agreement, it states that the holder owes the issuer a debt. There are many types of bonds; however, the focal point is the bail bonds Oakland. The bail bond agreement states that the defendant is to appear before the law court and face trial. The bail bond is co-signed by a bail bondsman who charges the accused criminal a fee as a guarantee for payment. It is also known as a surety bond.
Here is some information to help you get a better understanding of bail bonds.
Is There a Need for Such an Industry?
The business model is a kill in habitats with high crime rates, countries such as the United States of America and the Philippines have embraced the idea and are filling in a need for their clients. Therefore, it’s safe to say that the need for such firms is there.
How Do Bail Bonds Work?
A perfect analogy to ensure that the concept it grasped properly is as follows: Say an individual named Tyrone who has allegedly committed Grand Theft Auto and has been arrested by the local police in Oakland. He goes for the first hearing and pleads he’s not guilty; therefore, the judge gives him a bail of $5000. Tyrone is not able to pay the bond; however, a company that deals in Bail Bonds sorts the bail for Tyrone, and he is a free man.
However, for all these to be possible, Tyrone will have signed an agreement with the company that he will show up in court. In the case that he doesn’t show up, the firm will lose the money they had given to the court hence why it is in the company’s best interest to look for Tyrone as their collateral to get their bond back.
Entrepreneurship at Its Best or Worst?
Depending on your perspective, the bail bonds system is a bittersweet symphony. The main reason is that it gives perpetrators a piece of mind knowing that they can get away by getting a bail bond. This increases the probability of them committing a crime when they are out on bail. It is good in the sense that it creates an opportunity of making money for the bail bondsman.
Will It Be Able to Be Applied in Other Industries?
The criminal justice industry is a perfect match for this business model since it banks on poverty and criminal activities. The two vices make a perfect blend for the thriving off of the concept. Thus, it is viable to apply the same model elsewhere. A good example is business bonds and government bonds.
Conclusion
The idea of bail bonds is ground-breaking since it offers a solution to a problem. If other countries take up the opportunity to encourage the coming up of such firms, there might be a significant reduction of crowded jail spaces, high return rates to the court, and discipline among individuals who have been granted bonds by the court.