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You don’t pay $250M, you borrow that amount providing some collateral proportional to your risk of flight. It is basically an insurance policy with $250M payoff
by coolspot 4y ago
You don’t pay $250M, you borrow that amount providing some collateral proportional to your risk of flight. It is basically an insurance policy with $250M payoff. Or an option.
- cm2187 4y agoI understand but you need to be able to borrow $250m. I can't borrow 250m. No one is going to allow me to borrow 250m unless I have some serious assets, which is not what the article suggests.
- HDThoreaun 4y agoThere’s an entire industry devoted to providing these loans and hunting the people who don’t show up at court and therefore cost the “bank” the loan.
- dragonwriter 4y ago> I understand but you need to be able to borrow $250m. No, you just have to have the court believe the combination of penalty, security, sureties, and non-financial conditions is sufficient to assure appearance. In some state systems, the court may be constrained to only accept full secured bond when there is a penalty amount (or, if not so constrained, may have a practice of generally doing so), but that is absolutely not a requirement or the normal practice in the federal system.
- dragonwriter 4y ago> You don’t pay $250M, you borrow that amount providing some collateral proportional to your risk of flight. No, you don't. Even with a fully secured bail bond (which is not a norm in all US jurisdictions), you (or someone acting as your surety) provides the court with a legal claim on property with a value at least equal to the bail amount. When (as is the norm in many syate systems) you engage a bail agent as a surety, the fee may be risk sensitive, or it may be a fixed percentage set by law, depending on state law.