R590-186-8. Bonding Limits

  (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.