North Carolina Bail Bonds Practice Exam

What two actions can a bondsman take with collateral?

1. Invest it or keep it

2. Store it or sell it

3. Pay the bond or give it back

4. Loan it or exchange it

The correct answer is: Pay the bond or give it back

The ability of a bondsman to manage collateral is primarily focused on the bond's obligations and the rights afforded to them. When a bondsman receives collateral, it serves as a guarantee or security against the bond amount. The correct answer indicates that a bondsman can either pay the bond using the collateral or return the collateral to the client once their obligations have been met. Paying the bond with the collateral occurs when the defendant does not comply with the conditions of their bail, and the bondsman is then authorized to cover the bond obligation by utilizing that collateral. Conversely, if the defendant complies with all court appearances and obligations, the bondsman will return the collateral to ensure that the client is not unduly penalized for their compliance in the legal process. The actions described in the other choices do not align with standard practices for bondsmen regarding collateral. While the bondsman might sell collateral in a scenario where the defendant fails to appear, it is not explicitly established in the choices. Overall, managing collateral primarily revolves around ensuring the bond is secured and appropriately resolved based on the legal proceedings.