R590-186-8. Bonding Limits  


Latest version.
  •   (1) A bail bond agency that maintains a qualified power of attorney from a surety insurer may not maintain outstanding bail bond obligations in excess of the amount allowed by the surety insurer.

      (2) A bail bond agency that pledges assets of a letter of credit or pledges personal or real property may not maintain outstanding bail bond obligations in excess of the amounts provided in the table below:


    TABLE


    Financial Requirements Ratio of Outstanding Bond

                                     Obligations to Letter of

                                     Credit or Net Worth and

                                     Liquidity Amounts


    $250,000 line of credit licensed 0 to 36 months: 5 to 1

    or net worth/$50,000 licensed over 36 months: 5 to 1

    liquidity)

    300,000 or more line of licensed 0 to 36 months: 5 to 1

    credit limit or net worth/ licensed over 36 months: 10 to 1

    at least $100,000 liquidity


      (3) The commissioner may reduce the bonding limit of a letter of credit or a property bail bond agency who has qualified for the 10 to 1 ratio if that bail bond agency's line of credit limit or net worth or liquidity limit falls below the limits stated in Subsection(2) above.