North Carolina Bail Bonds Practice Exam

What happens to any excess collateral when bail is reduced?

1. It is retained by the bondsman

2. It must be returned

3. It is donated

4. It is forfeited

The correct answer is: It must be returned

When bail is reduced, any excess collateral must be returned to the individual who posted the bail. The purpose of collateral in the context of bail is to provide a security guarantee to the bondsman that the defendant will appear in court. Once the bail amount is lowered, the bondsman is no longer entitled to keep the full amount of the collateral that exceeds the new bail amount. This principle ensures fairness and allows the person who posted the bail to retrieve funds that are no longer needed to secure the release of the defendant. Retaining excess collateral, donating it, or forfeiting it would not align with the intended purpose of bail and collateral in the judicial process, which prioritizes the return of funds as circumstances change.