31A-35-603 - Collateral security. - Utah Statutes

31A-35-603. Collateral security.
(1) A bail bond producer may accept collateral security in connection with a bailtransaction, if the collateral security is reasonable in relation to the face amount of the bail bond.
(2) (a) The collateral security described in Subsection (1) shall be received by the bailbond producer in the bail bond producer's fiduciary capacity.
(b) Before any judgment of forfeiture of bail, the bail bond producer shall keep thecollateral separate and apart from any other funds or assets of the licensee.
(3) (a) Any collateral that is deposited with a bail bond producer or bail bond surety shallbe returned to the person who deposited it within 10 days after the return is requested by theperson who deposited it if:
(i) the bail bond has been exonerated; and
(ii) all fees owed to the bail bond producer or bail bond surety have been paid.
(b) A certified copy of the minute order from the court stating the bail or undertakingwas ordered exonerated is prima facie evidence of exoneration or termination of liability.
(4) (a) If a bail bond producer accepts collateral, the bail bond producer shall give awritten receipt for the collateral.
(b) The receipt required by Subsection (4)(a) shall include a fully detailed account of thecollateral received.
(5) Upon return of collateral to the person who posted it, if any amount has beendeducted by the bail bond surety or bail bond producer as expense, the bail bond surety or bailbond producer shall:
(a) include with the returned collateral an itemized statement of all expenses deductedfrom the collateral; and
(b) maintain a copy of the statement required by Subsection (5)(a) in the records of thebail bond surety or bail bond producer.
(6) If the bail bond secured by the collateral is forfeited and the bail bond producer orbail bond surety retains possession of the collateral in payment of the forfeiture or otherwisedisposes of the collateral, the person retaining possession or disposing of the property shallmaintain a written record of the collateral, including any disposition.
(7) (a) If a document that conveys title to real property is used as collateral in a bail bondtransaction, the document shall state on its face that it is executed as part of a securitytransaction.
(b) If the document described in Subsection (7)(a) is recorded, the bail bond producer orthe bail bond surety shall:
(i) execute a reconveyance of the property, executed so that the reconveyance can berecorded; and
(ii) promptly deliver the reconveyance document to:
(A) the person executing the original conveyance; or
(B) the heirs, legal representative, or successor in interest of the person described inSubsection (7)(b)(ii)(A).

Amended by Chapter 298, 2003 General Session