9.1-185.10 - Collateral received in the course of business; standards and requirements. - Virginia Statutes

§ 9.1-185.10. Collateral received in the course of business; standards andrequirements.

A. A licensed bail bondsman shall be permitted to accept collateral securityor other indemnity from the principal, which shall be returned upon finaltermination of liability on the bond, including the conclusion of all appealsor appeal periods. Such collateral security or other indemnity required bythe bail bondsman shall be reasonable in relation to the amount of the bond.

B. When a bondsman accepts collateral, he shall give a written receipt to thedepositor. The receipt shall provide a full description of the collateralreceived and the terms of redemption or forfeiture. The receipt shall alsoinclude the depositor's name and contact information.

C. Any bail bondsman who receives collateral in connection with a bailtransaction shall receive such collateral in a fiduciary capacity, and priorto any forfeiture of bail shall keep it separate and apart from any otherfunds or assets of such bail bondsman. In the event a bondsman receivescollateral in the nature of a tangible good, it shall be a per se violationof the bail bondsman's fiduciary duty to make personal use of any suchcollateral unless there is a proper forfeiture of bail.

D. Any collateral received shall be returned with all due diligence to theperson who deposited it with the bail bondsman or any assignee other than thebail bondsman as soon as the obligation is discharged and all fees owed tothe bail bondsman have been paid. In any event, after a specific request forthe return of the collateral by the depositor, the collateral shall bereturned within 15 days after all fees owed have been paid.

(2004, c. 460.)