California Title 10 Bail Regulations
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2088. Collateral; Fiduciary Relation

Any bail licensee who receives collateral in connection with a bail transaction shall receive such collateral in a fiduciary capacity, and prior to any forfeiture of bail shall keep it separate and apart from any other funds or assets of such licensee.

2088.1. Collateral; Custody Thereof

If pursuant to his agreement or contract of agency employment or partnership any bail licensee is or may be required, or in fact does, transfer collateral to another bail licensee, general agent, or surety insurer, such recipient of said collateral shall hold it in the same fiduciary capacity as the bail licensee, return it, and otherwise handle it in conformity with Sections 2088 through 2089, both inclusive, hereof. Such collateral shall only be transferred to another bail licensee or to a surety insurer holding a certificate of authority in California and said collateral shall not be removed from this state.

2088.2. Return of Collateral

Any collateral received shall be returned to the person who deposited it with the bail licensee or to any assignee of such person, other than the bail licensee or his representative, as soon as he is advised that the obligation, the satisfaction of which was secured by the collateral, is discharged. It is the duty of the bail licensee or surety insurer to determine promptly whether such obligation has been discharged upon request for return of the collateral by the person depositing it or by his assignee. If the collateral was deposited to secure the obligation of a bond, it shall be returned immediately upon the entry of any order by an authorized official by virtue of which liability under the bond is terminated. If any licensee or surety insurer which has custody of the collateral fails to take promptly any action necessary to secure the termination of such liability, he shall return such collateral immediately upon the accrual of any right to secure an order of termination of liability. If such collateral was deposited as security for unpaid premium or charges and if such premium or charges remained unpaid at the time of exoneration and after demand therefor has thereafter been made by the licensee or surety insurer which has custody of the collateral, the collateral other than cash may be levied upon in the manner provided by law and the proceeds of such collateral may be applied to the amount of such unpaid premium or charges.

2088.3. Real Property as Collateral

If a bail licensee receives as collateral in a bail transaction, whether in his own or on another's behalf, any document which conveys title to real property, such document shall state on its face that it is executed as part of a security transaction. If such document is recorded, a reconveyance of such property executed in such a manner that it may be recorded shall be delivered by the responsible bail licensee or surety insurer to the person executing the original conveyance or to his heirs, legal representative or successor in interest immediately upon such responsible party learning of the satisfaction of the obligation secured; and it is the duty of such responsible party to determine promptly whether such obligation has been discharged upon request for return of the collateral by the person entitled thereto.

2089. Return of Excess Collateral on Forfeiture

If collateral received is in excess of the bail forfeited, such excess shall be returned to the depositor immediately upon the application of the collateral to the forfeiture; subject, however, to any claim for unpaid premium or charges as provided in Section 2081.

2090. Surrender of Arrestee to Custody; Return of Premiums

No bail licensee shall surrender an arrestee to custody prior to the time specified in the undertaking of bail or the bail bond for the appearance of the arrestee, or prior to any other occasion when the presence of the arrestee in court is lawfully required, without returning all premium paid for such undertaking or bond; except that when as the result of judicial action, information concealed or misrepresented by the arrestee or other reasonable cause, any one of which was material to the hazard assumed, and the licensee can show that the hazard was substantially increased, then the bail licensee may retain incurred out of pocket expenses permitted to be charged by Section 2081

(c) and (d). The surrender of an arrestee who is again in custody for an offense for which a penalty greater than that for the original offense may not be imposed, or his surrender at the request of the guarantor shall never, in and of themselves, be considered to be reasonable cause for surrender, and in case of any surrender under such circumstances, and no actual and substantial increase in hazard can be shown by the licensee, all premiums received and incurred expenses shall be returned. Compliance with an Order of the Court made pursuant to Section 1300(b) of the Penal Code shall be in compliance with this Section; and a licensee at the time of any surrender of an arrestee prior to the time specified in the undertaking of bail shall inform such arrestee of his rights under said Section 1300(b) to petition the Court for a ruling as to return of premium.

2091. Forfeitures; Misrepresentations

No bail licensee shall make any misleading or untrue representation to a court or to a public official for the purpose of avoiding or preventing a forfeiture of bail or of having set aside a forfeiture which has occurred, or for the release of an arrestee on his own recognizance after bail has once been placed by the licensee. A copy of all written representations made by or on behalf of a bail licensee for such purpose shall be kept as provided in Section 2098, unless such representations are filed by an official as a public record.

2092. Interrogations; Licensee Must Answer

Every bail licensee must truthfully answer any question asked him by the commissioner or his representative about his bail transactions or matters relating to the conduct of his bail business, subject only to his lawful constitutional rights against self-incrimination.