California Claim and Delivery Bond

Written May 20th, 2013 by
Categories: Articles, Articles on California Bonds, Court Surety Blog
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A sad result of the ‘the great recession of 2008’ is that many people fell behind in their auto loans.  In the aftermath, many vehicles were repossessed by the crediting institutions.   And with the large population and all the car friendly scenery, California has seen a big upswing in the number of automobiles repossessed over the past four years.  This is not a happy or profitable part of anyone’s business.   The number of repossessions continue to increase despite lending agencies best efforts to reduce the number of repossession as much as possible.  No bank or credit union wants to go through the process of collecting.  It is time consuming and expensive.  In addition it can be messy for the collection agents as well.  Without proper assurance that their actions are covered by a financial guarantee (such as a sheriff indemnity bond) banks and credit unions are still exposed to the risk of associated with an improper seizure.

Claim and Delivery bonds also known as Replevin and Sequestration bonds eliminate all that extra worry and reduce the unwanted extra risk and mess that can result when receivables are collected without a bond.  Claim and Delivery Bonds are required by statute if the plaintiff seeks to levy property before a judgment is made. The bond guarantees that if the replevin is deemed wrongful that the defendant be able to collect damages.

Of these type of bonds extend beyond the automotive lending industry.  Other include boats, planes, mobile homes . . . . .

In California, the cost of acquiring a bond is dependant on the value of the property being collected in addition to the details of the case.  A judge has leeway when setting the amount of the bond and this can be frustrating to parties but is important to keep costs low in circumstances where a flat rate would create an unnecessary burden.

The bond experts at Jurisco have answers to any questions that may arise while you are shopping for a bond agency.

Surety bond vs. Cash Deposit with the Court: Explained

Written May 13th, 2013 by
Categories: Articles, Articles on California Bonds, Articles on Florida Bonds, Court Surety Blog, Surety Bonds
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In Civil Cases when a surety bond is statutorily required, or deemed necessary by the judge, the principle has two options:  1) to  procure a surety bond or 2)  deposit cash in the amount of the bond with the court.  In what scenarios does it make sense to obtain a surety bond and when does it make sense to deposit money with the court?  In this article, the bond experts at Jurisco will provide you with information to help make your choice easier.

One reason to obtain a surety bond, such as an injunction bond, appeal bond or a probate bond, is that it frees up capital for the principle.   A surety bond requires only an annual premium payment of one or two percent of the bond amount; whereas if a principal chooses to deposit cash with the court, the principle loses access to a substantial amount of capital.  This is money that could be invested; and since bonds can remain active for several years, the ‘lost’ income derived from investment could reach significant level.  Furthermore, when cash is deposited, the courts collect the interest from their deposit accounts.  The principals money is working; just not for them.

In addition, if you intend to post cash with the court in lieu of a bond then it is important to find out the rates because they can often be higher than than the premium.  In Florida, for instance, the fee for placing a deposit with the court is often higher than the premium for the respective surety bond.   In California, on the other hand, there is no fee for depositing money with the court.

A second important consideration if the difficulty involved in retrieving the money from the court. Surety Bond agencies, such as Jurisco, are built on customer service and they retain clients based on their ability to solve their clients diverse needs.  Often this requires being flexible and finding  creative solutions to problems.  Superior courts, like many municipal and state institutions are not; and retrieving deposits can be a long and arduous process.  And when it is possible to reach customer service professionals, rarely do they have the answers.   There are too few of them and the range of problems is far too large for any one employee to have a detailed grasp of all the issues.

When making a decision involving time and money it is important to have all the facts.  If the surety bond process seems confusing, please don’t hesitate to contact the bond professionals at  Jurisco.  Their expert team is available to answer all your questions.

 

Professional Fiduciaries and bonds in California

Written May 6th, 2013 by
Categories: Articles, Articles on California Bonds, Court Surety Blog, Surety Bonds
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Did you know that in 2007 the California legislature passed into law  the Professional Fiduciaries Act and as of January 1st 2009 it became necessary for any fiduciary to be licensed if they were to legally operate in the state.  In the legal world a Fiduciary is defined as, “An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another’s benefit.”  The California Professional Fiduciary Bureau is the the state licensing body that sets the definition of a ‘professional fiduciary’ for California.   Generally,  a professional fiduciary requires a license if they are a conservator or guardian for two or more people; or a trustee or agent under durable power of attorney for health care or finances for more than three people.

Currently there are over 500 professional fiduciaries licensed in CA, representing many more estates and individuals.  And these professionals manage over 6 billion dollars in assets.   Commonly and throughout the year, these professional fiduciaries are required to post a surety bond.  For the newly licensed this can seem like a big obstacle.  It doesn’t have to be.  Experienced fiduciaries know that the acquiring a guardianship bond, a trustee bond or a personal representative bond in California can be a quick and easy process.

The bond experts at Jurisco have been serving the needs of professional fiduciaries in California for years.  If you have any questions about the surety bond process please contact a representative at Jurisco and they will be happy to answer your questions.

Why do Surety Bonds Require Collateral?

Written April 29th, 2013 by
Categories: Articles, Articles on California Bonds, Court Surety Blog, Surety Bonds
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In a previous post, we explored the topic of defendants bonds and appeal bonds in particular.  In upcoming posts we will define in more detail other kinds of defendants bonds.  For this post, however, the surety bond experts at Jurisco will be answering the question that many attorneys ask when they are required to procure a defendant bond:  Why is it that my client is required to put up collateral in order to qualify for this bond?  There are two answers to this question:

The most common answer is that collateral is required when the principle is deemed to be ‘high risk’ such as applicants who have poor credit.  The collateral then comes in the form of cash deposited with the bond agency or in the form of an Irrevocable Letter of Credit (ILOC) from a qualified financial institution of long standing.  More and more agencies are accepting an ILOC in lieu of cash.  A principle can be considered ‘high risk’ for several reasons but, as noted, the most common is a poor credit rating.  A poor credit rating can affect principles applying for Probate, Plaintiff and Defendants bonds.

It is important to note that  the terms of the collateral release are set by the agency and must be agreed upon by the principal before the bond will be issued.  A surety agency will often not release collateral until the obligee releases the surety from any liability; this is done in the form of a written statement.  Furthermore, an obligee will often not release liability  until it seems clear that there will not be any claims filed against the bond.  This can be well after the bond period ends and so a principle must be aware that their collateral may not be released even when the bond expires.

The second most prevalent reason why a principal is required to post collateral is when it is mandatory under the terms of the bond.  This is the case with all defendant bonds.  As mentioned in a previous post LINK, defendant bonds are used used as good faith measures so certain legal actions can be delayed.  The collateral acts as good faith for the surety and without it, issuing an appeal bond or a transfer of lien bond would be far too high risk.   For defendants bonds, Jurisco requires full collateral in the amount of the bond, though exceptions can be made for large publicly traded corporations or Insurance companies.

Check back in to the Jurisco article site for more information on collateral and other surety bond requirements.  If you have any questions, the surety bond experts at Jurisco will be happy to help.

California Appeal Bond

Written April 22nd, 2013 by
Categories: Articles, Articles on California Bonds, Court Surety Blog, Surety Bonds
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Often times surety bonds are used in cases to protect an enjoined party from wrongful civil actions.  These generally fall under the category of plaintiff bonds.  However there is also a list of surety bonds used as good faith measures so certain legal actions can be delayed.  These are called defendants bonds.  Over the coming weeks, the surety bond experts at Jurisco will explain the different types defendant bonds and their appropriate uses as it pertains to civil law in California.  Today’s post will start with Appeal bonds.

In most instances obtaining a defendant bond is statutorily mandated by courts during an appeal proceeding in a civil court.  Called either an appeal bond or supersedeas bond, these legal mechanisms are required by statute for the appeal of a money judgment.  These surety bonds guarantee the judgment will be satisfied along with court costs. Surety bond cost varies by state but usually includes a provision for interest.

Appeal Bonds are widely used but not the only available option for a defendant.  There are several other defendant bonds offered by Jurisco.  Keep checking in to this blog explanations of the defendants bonds listed below:

When you are in need of a bond of if you have any questions,  contact the bond experts at Jurisco and they will answer any of your questions.

E-Filing Surety Bonds in California

Written April 22nd, 2013 by
Categories: Articles, Articles on California Bonds, Court Surety Blog, Surety Bonds
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Did you know that the electronic filing (E filing) of certain civil court documents is available (and sometimes mandatory) in counties and judicial districts all over California?  Its true.  Pursuant to amendments in the California Code of Civil Procedure section 1010.6, civil court documents can be filed easily and efficiently from your office.  In Orange County Superior Courts it is even possible to file both Plaintiff Bonds and Defendant Bonds (e filing for probate bonds is not yet an option).  Surety Bonds such as Injunction Bonds and Appeal bonds can now be filed in minutes.  More and more superior courts in counties around California are making E filing a reality.

How does this help court users?  For one thing it means no trips to the courthouse specifically for filing of civil court documents such as insurance coverage claims and surety bonds.  This saves time and money for both the user and the courts.  In addition, E filing will make public documents more readily available for electronic searching; another time and money saving development.

Furthermore, the filing of civil court documents is done through secure and trusted third party vendors.  These vendors include American LegalNet; Essential Publishers; One Legal; and Rapid Legal.

The surety bond experts at Jurisco have been E filing their surety bonds in other states for years and they fully support California’s efforts to make the filing of civil court documents more accessible.

If you have any questions on how E Filing will affect your practice please contact the knowledgeable staff at Jurisco.

 

California Attachment Bond

Written April 19th, 2013 by
Categories: Articles, Articles on California Bonds, Court Surety Blog, Surety Bonds
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There are many reasons why a plaintiff would seek a prejudgment Writ of Attachment in a civil proceeding; and there are valid reasons why seeking to attach in a civil proceeding is not a good tactic.  California has strict statutory regulations regarding a claimant seeking to attach so it is important to weigh the value of the attachment versus the costs associated with obtaining a prejudgment writ.  One important consideration is that obtaining the writ will require the claimant to obtain an Attachment Bond.   This article will look at this, and other important factors in obtaining a writ of attachment in California.  Furthermore it will also explain the scenarios where not seeking to attach would be appropriate.

By definition: a prejudgment writ of attachment may be used to freeze assets of a defendant while a legal action is pending. As expressed in the California Code of Civil Procedure, a claimant who files for a prejudgment writ must satisfy certain criteria:  The legal action must involve a dispute over an express or implied contract (more on this below); the claim must be not less than $500; the claim must not be on real property; and the action must be based on a claim that is commercial and not personal.

As to the first provision It is important to note that writs of attachment are only for express or implied contracts and not for torts; such as a claim for negligence.  Any by filing for the prejudgment writ of attachment a plaintiff if forgoing the option of seeking a tort remedy in the case.  The decision will need to be weighed thoughtfully before pursuing a writ.

If all criteria listed above are met the plaintiff in California will be required to obtain an Attachment Bond before the courts will allow any assets to be attached.   Relative to the scenario above an attachment bond is a bond given by a plaintiff seeking to attach the defendant’s property that ensures payment to the defendant of any damages suffered because of the attachment in the event the plaintiff loses the suit.  Due to the time sensitive nature of many civil claims, attachment bonds can be obtained in as little as 24 hours.  This will prevent the defendant from distributing assets to other states and other countries. This is important because only assets within the state where the action is filed can be attached.

For more information on attachment issues and civil court claims the knowledgeable staff at Jurisco are available to answer all your questions.   If you need questions answered specifically about the bond process; the experts at Jurisco are available to guide you through the process.

 

Texas Custodian of Veteran Bonds

Written April 15th, 2013 by
Categories: Articles, Articles on Texas Bonds
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Custodian of Veteran bonds work similarly to guardianship bonds in that they oversee the assets of another person. However, the two cannot be interchangeable as the custodian of veteran bond deals solely with veterans of the United States armed forces. While guardianship bonds go through Texas probate court, parties overseeing a veteran’s estate are channeled through the Department of Veterans Affairs (VA). Today we will talk about why a custodian of veteran bond may be required in Texas, its associated cost and how to fill out an online application.

Does the VA require a custodian of veteran bond?

Veterans Affairs may require a custodian of veterans bond, but a Texas court may also step in to enforce the measure. The surety bond is necessary to fully protect the assets of the veteran whose estate is being watched after. You can find a complete list of Texas locations for Veterans Affairs online.

Why would a veteran need a custodian for her/his estate?

The naming of a custodian only occurs when a veteran is deemed incapacitated. Usually a veteran is considered incapacitated due to mental illness, a physical illness, disability, chronic drug use or advanced age.

What are the responsibilities of custodian?

The person named custodian must properly handle all funds received for disability, time of service, etc. He or she is responsible for ensuring the funds are not misspent and that the veteran is taken care of.

How much does a custodian of veteran bond cost?

The cost of all surety bonds depend on various factors including the wealth of an estate, the credit history of the custodian and special state requirements for the bond.  A surety bond expert at Jurisco can discuss your particular requirements to give you an idea of the amount.

Can I fill out a bond application online?

Yes, Jurisco makes it easy to fill out a custodian of veteran bond application online. Should this not be the best method for you, our office can fax over a surety bond application today.

Michigan Personal Representative Bond

Written April 15th, 2013 by
Categories: Articles, Court Surety Blog, Surety Bonds
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A personal representative bond carries a lot of weight with a minimal cost. Think of it as the surety bond that treads lightly but carries a big stick. Personal representative bonds protect the deceased’s assets and heirs fully. Should the administrator misuse funds or cause damage to the estate, the personal representative bond is there to set things right again.

One of the main reasons Michigan statute mandates personal representative bonds is to protect the heirs of an estate, especially those under the age of 18. In the unfortunate event that a child’s parents are both killed, a personal representative may be named to oversee the estate. This person, sometimes the closest living relative, has a duty to settle the estate in the best interest of all parties and to not cause undue burden.

The job of a personal representative isn’t always the easiest. When children are involved the situation is even more delicate. When probate attorneys consult personal representatives they stress the responsibility and importance of the role they will play on top of notifying and keeping track of all the heirs, there is the matter of taxes to deal with, and settling debts. Having a surety bond is how the personal representative can protect the heirs, the estate and all beneficiaries.

On average, the cost of a personal representative bond is reasonable. At Jurisco the bond cost is a small percentage of the overall bond amount. The amount is calculated to cover the value of the estate. When you contact Jurisco we can discuss your case to determine the actual personal representative bond cost.

Surety Bond Saves Company $1.2 Million

Written April 15th, 2013 by
Categories: Articles, Court Surety Blog, Surety Bonds
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A surety bond saved an Ohio company $1.2 million after a business it was working with declared bankruptcy. United Architectural Metals (UAM) was able to recover the $1.2 million owed by Trainor Glass Company because Trainor used a surety bond. By using a surety to protect the company’s assets, Trainor was able to properly settle their debts.

In March, we discussed how bankrupt companies employ receiver bonds to cover any mishandling of funds during the bankruptcy process. While that is an example of a surety bond being used after the fact, there are bonds used throughout the duration of a business that protect their assets and creditors. At Jurisco we handle a range of these license and permit bonds including Yacht Broker bonds, health club bonds, mobile home installer dealer bonds, and mortgage broker bonds.

A surety bond aids a business the same way it aids a plaintiff or defendant. When a company wants to take action, be it expansion to a new region or investing money in a building project, the business must prove it can handle the responsibility without causing anyone else a loss.

In the case of UAM and Trainor, the two were involved in a contract concerning the Firekeepers Casino in Battlecreek, Michigan. When Trainor filed for bankruptcy, UAM was the largest creditor listed on their Chapter 11 filing. According to the Glass Magazine article, UAM has between 1,000 and 5,000 more creditors to settle with. Depending on the surety bonds used in those cases, the surety bond company will pay the debts.

To learn more about how surety bonds affect your business contact Jurisco today. With the right surety bond you can be protected against almost anything.

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