what does bond assignment mean

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What is a bond assignment?

Southern illinois criminal defense.

After an arrest, a bail is set for the defendant. A bail is a conditional release, where the defendant promises to appear in court, and as collateral posts money. The amount of money required varies on case type and the seriousness of the charges. The purpose of bail is not to be so high and prejudicial that it keeps the defendant incarcerated, but to ensure the defendants presence in court.

Many Illinois felony charges come with very high bail. The defendant is required to pay 10% of whatever the bail is set at in order to be conditionally released. Many defendants charged with felonies seek to hire private attorneys to represent them. However, felony attorneys can be quite expensive because of the amount of hours required to defend them. So many felony lawyers will take what is referred to as a bond assignment.

Bond assignments is where your bail is assigned to be released to someone else at the close of the case. For example, if your bail was set at $50,000, you would have to post $5,000 to be released. You hire an attorney who agrees to take a bond assignment for the $5,000. Therefore, if your attorney gets the case dismissed, the $5,000 is then refunded to the attorney for his services.

Olson & Reeves are Mount Vernon Criminal Defense attorneys who can help represent you in your felony or misdemeanor case. We offer free case evaluations.

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Understanding Kentucky Bond and Pretrial Release

The way bond works can be different for every individual and the process can be overwhelming. There are many steps to setting and determining bond and it all begins with the Pretrial Services officer who will conduct an assessment.

How and When Will My Bond Be Set?

To determine an individual’s recommendations for release, an assessment will be conducted by Pretrial Services. All 120 counties in Kentucky are staffed with pretrial workers that are available 24/7. This “Pretrial Risk Assessment” is defined in KRS §446.010 as “ an objective, research-based, validated assessment tool that measures a defendant’s risk of flight and risk of anticipated criminal conduct while on pretrial release pending adjudication.” During this step the officer will gather background information such as criminal history, severity of the current charges, likelihood of flight risk, employment status, and the risk of future criminal conduct, among other things. Each of these factors assist the pretrial officer in making their recommendation.

The state of Kentucky requires this assessment to be conducted no more than 12 hours after the arrest has been made. However, with misdemeanor offenses that do not have aggravating circumstances, this typically occurs much quicker. On the other hand, for more serious crimes the bond is not set until the arraignment. For most cases this is held within 24 hours and at this time the judge will rely on the report from the pretrial officer to set bail.

How Much Will My Bail Cost and How Long Will I Be In Jail?

Unfortunately, we cannot provide an exact or even a ballpark number for this question. However, there are some factors that may help you determine how high or low it may be. KRS §431.510 makes it illegal to offer bail bonds in the state which means there is no formal fee structure like we see in other states. Instead, this is determined by the above-mentioned factors. More specifically, KRS §431.525 states:

(a) sufficient to insure compliance with the conditions of release set by the court;
(b) not oppressive;
(c) commensurate with the nature of the offense charged;
(d) considerate of the past criminal acts and the reasonably anticipated conduct of the defendant if released;
and (e) considerate of the financial ability of the defendant.

Typically, once bond has been posted you should be released that day. The processing time typically can take anywhere from one to two hours to be completed. Depending on how quickly bond is set you could be released within hours of your arrest.

Can My Bail Amount Change?

Your original bail amount can later be adjusted at the discretion of the judge. This initial request should occur at the District Court arraignment by request of your attorney. If you are facing a misdemeanor charge you are then scheduled for a Pretrial Conference.

If you are facing a felony charge you will have a second arraignment in Circuit Court. This arraignment will occur after you are done with district court, and after your case has been presented to the Grand Jury. Once the Grand Jury issues an indictment, you will be brought before the Circuit Court Judge. Prior to your arraignment, the Circuit Court judge will review your bond, at which time the bond may go up, or down. If you are out of custody at this time, this could mean that you will be placed back in custody on a higher bond. At your arraignment, your attorney will have the opportunity to move for a modification in bond.

What Are the Types of Pretrial Release?

Despite what many think, the term “bond” doesn’t always mean an amount of money is paid for your release. In some instances, you may be release on other provisions. In Kentucky, there are four (4) methods by which a defendant in a criminal case can obtain pretrial release. Under Kentucky Rule of Criminal Procedure 4.04, pretrial release can be authorized if based on either one or a combination of the following:

Personal recognizance : also known as ROR or OR, this requires the signature of the defendant, a promise to appear in court and to follow any conditions imposed by the Court;
Unsecured bail bond : also known as an unsecured release, this requires the defendant to sign, promise to appear and follow any conditions imposed by the Court. In addition, an uncollected money amount is attached to this type of release. If the defendant fails to appear or abide by the conditions, it could lead to a forfeiture of this amount that the defendant would be required to pay;
Nonfinancial conditions : also known as third-party surety release, this requires a third party to sign with the defendant. This person will usually be required to own property, which may be subject to forfeiture by the Court if the defendant does not show up for court or follow the conditions of release; or
Executed bail bond : this may be cash, property, or a percentage of the bail amount. If the conditions of bail are not met, the bail amount may be forfeited.

Now That Bail Is Set, How Do I Pay It?

How you pay a bond will entirely depend upon which type of bond has been set.

Most often these will be a full cash bond which requires the entire amount of the bond be paid at once. However, sometimes a judge will only require 10% of the total bond to be posted to allow release.
Property bonds are only accepted Monday through Friday from 9:00 am until 3:30 pm. Cash bonds can be posted at any time.
A copy of the deed;
A current statement from the mortgage company indicating the principal balance owed on the property;
If there is a second mortgage/equity line of credit, a current statement from the mortgage company. Indicating the original amount of the loan; If the statement indicates and unpaid late charges, the property may not be posted.
A current statement from the Property Value Administrator (PVA) showing the assessed value of the property-property tax bills is not accepted. The Fayette County PVA is located at: 101 East Vine Street, 6th Floor, Lexington, Ky 40507.
A property tax bill indicating that property taxes are paid in full.
So, if the person has a $20,000 bond, there must be at least $40,000 in unencumbered equity in the property. If the bond is a 10% bond, you must have double the equity of the full cash bond.
They must have acceptable photo identification. If the owner on the deed is deceased, proof of death must be produced via a death certificate.
This must be paid at the time the bond is posted. It is a $25.00 bond filing fee and a $28.00 record release fee.

There Is No One Size Fits All Answer.

Bonds are complicated and the process is hard to navigate. Get an attorney to assist with the process. Contact us today for assistance.

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What are Bonds? Understanding Bond Types and How They Work

Wondering about bonds? They're well worth considering when building out your investment portfolio. They come with many potential benefits, including capital preservation, diversification, income, and potential tax advantages.

Ahead, we'll answer the most important questions about bonds. Read through them all or jump around:

What is a bond?

How do bonds work?

What are bond ratings?

What are the most common types of bonds?

What are the risks associated with bonds?

How can i buy bonds.

A bond is a loan. When you purchase a bond, you provide a loan to an issuer, like a government, municipality, or corporation. In return, the issuer promises to pay back the money it borrowed, with interest. The interest will be received on a predetermined schedule (usually semiannually, but sometimes annually or quarterly).

How do bonds work?

Here's an example of how a bond works: Let's say the government issues a 10-year bond with a face value (a.k.a. par value) of $10,000 and an annual interest rate of 4%, paid semiannually. When you buy this bond, you're lending the government $10,000. Every year for the next ten years, the government will owe you 4% of that $10,000 ($400 annually or $200 every 6 months) as an interest payment, also known as a coupon payment. In addition to the $400 coupon payment you receive yearly, the government will also have to pay you back the full $10,000 when the bond matures (in this case, at the 10-year mark).

Bonds are generally issued with fixed par values and stated coupon rates. The coupon rate determines the annual interest payments to be paid to the bondholder and are based off of the bond's par value. Interest payments are usually paid every six months.

While the par value of a bond is usually fixed, prices can still fluctuate in the secondary market. Bond prices and yields move in opposite directions. When interest rates rise, prices tend to fall, and vice versa. This can affect the market value of a bond if you decide to sell it before it reaches maturity.

A bond term refers to the length of time between the date the bond was issued and when the bond matures. Bonds with terms of less than four years are considered short-term bonds. Bonds with terms of 4 to 10 years are considered intermediate-term bonds. Bonds with terms of more than 10 years are considered long-term bonds.

Major rating agencies like Moody's Investors Service (Moody's) and Standard & Poor's (S&P) issue a credit rating for bonds. Bond ratings represent the rating agencies' opinion of the issuer's creditworthiness and ability to repay its debt, based on its financial position, management, and other factors.

The ratings are the opinion of the agency. They are not a guarantee of credit quality, probability of default, or recommendation to buy or sell. Ratings reflect a current assessment of an issuer's creditworthiness and do not guarantee performance now or in the future. Issuers rated below investment grade are expected to have a greater risk than those with investment grade credit ratings.

Bond ratings chart

Standard & Poor's
Moody's
Investment Grade -->
Standard & Poor's -->
Moody's -->
Strongest/highest quality, minimal credit risk -->
Standard & Poor's AAA -->
Moody's Aaa -->
Strong/high quality, very low credit risk -->
Standard & Poor's AA -->
Moody's Aa -->
Upper-medium grade, low credit risk -->
Standard & Poor's A -->
Moody's A -->
Moderate credit risk -->
Standard & Poor's BBB -->
Moody's Baa -->
Sub-Investment Grade/High Yield -->
Speculative grade, higher credit risk -->
Standard & Poor's BB, B -->
Moody's Ba, B -->
Highly speculative, very high credit risk -->
Standard & Poor's CCC, CC, C -->
Moody's Caa, Ca -->
Default -->
Standard & Poor's D -->
Moody's C -->
Not rated or not available -->
Standard & Poor's NR or NA -->
Moody's NR or NA -->
Rating withdrawn -->
Standard & Poor's WD -->
Moody's WD -->

Note: Standard & Poor's ratings from A to CCC may be modified by a plus (+) or minus (-) sign to show relative standing within the rating categories. Moddy's uses numerical modifiers 1, 2, and 3 in each category: The modifier 1 indicates that the obligation falls in the higher end of its category; the modifier 2 indicates a mid-range assessment; and the modifier 3 indicates a standing in the lower end of that rating category.

Source: Standard & Poor's and Moody's.

Types of bonds

Let's look at the different types of bonds, starting with the types of bonds that could make up the core of your bond portfolio. Core bonds can help offer diversification, stability, and a reliable source of income.

Core bonds include:

U.S. Treasuries

Municipal bonds

Investment-grade corporate bonds

Mortgage-backed securities.

Treasury Inflation-Protected Securities

Agency bonds

Sometimes it makes sense to assume more risk in exchange for higher yields—and that's where aggressive income bonds come in. Aggressive income bonds should generally make up only a small portion of your total portfolio to minimize unnecessary risk.

Aggressive income bonds include:

High-yield corporate bonds

International developed market bonds.

Emerging-market bonds

Preferred securities

Treasuries are issued by the U.S. government and come in three varieties:

Treasury bills mature in up to 52 weeks and do not make coupon payments. Rather, they are sold for less than their face value but pay their full face value at maturity. The interest earned is the difference between the purchase price and the par value at maturity.
Treasury notes are issued with maturities of two, three, five, seven, or 10 years and pay interest every six months.
Treasury bonds are issued with 20- and 30-year maturities and pay interest every six months.

U.S. Treasuries are considered among the safest available investments because of the very low risk of default. Unfortunately, this also means they have among the lowest yields, even if interest income from Treasuries is generally exempt from local and state income taxes.

Municipal Bonds

Municipal bonds, or munis, are issued by states and other local governments to fund public projects and services, such as roads and schools. They generally fall into one of two categories:

General obligation (GO) bonds are backed by the taxing authority of an issuing municipality. Most municipal bonds are highly rated, however, and municipal default rates tend to be very low.
Revenue bonds , which account for nearly two-thirds of investment-grade municipal bonds, are backed by revenue from a specific source, such as a toll road or public utility—meaning your principal and/or interest payments are supported by a steady income stream.

Interest earned on most municipal bonds is exempt from federal income tax and may be exempt from state and local taxes (depending on where you live). Because of those tax advantages, municipal bonds typically offer lower yields than investment-grade corporate bonds.

Investment-grade corporate bonds are issued by companies with credit ratings of Baa3 or BBB- or above by Moody's or S&P, respectively, and therefore have a relatively low risk of default. Companies issue corporate bonds to raise capital for a number of reasons, such as expanding operations, purchasing new equipment, building new facilities, or just for general corporate purposes.

The issuing company is responsible for making interest payments (usually semiannually, but sometimes monthly or quarterly) and repaying the principal at maturity. Investment-grade corporates carry a higher risk of default than Treasuries and municipal bonds, and therefore offer a slightly higher yield.

Mortgage-backed securities are created by pooling mortgages purchased from the original lenders. Investors receive monthly interest and principal payments from the underlying mortgages. These securities differ from traditional bonds in that there isn't necessarily a predetermined amount that gets redeemed at a scheduled maturity date.

Bondholders receive monthly payments that are made up of both interest and part of the principal as borrowers pay back their loans. These payments can vary from month to month and create irregular cash flows. Additionally, prepayment of mortgages can cause mortgage-backed securities to mature early, cutting short an investor's income stream.

Treasury Inflation-Protected Securities (TIPS)

Treasury Inflation-Protected Securities (TIPS) are a type of Treasury security whose principal value is indexed to inflation. When inflation rises, the TIPS' principal value is adjusted up. If there's deflation, then the principal value is adjusted lower. Like U.S. Treasuries, TIPS are backed by the full faith and credit of the U.S. government. Interest is paid based on the adjusted principal every six months, and at maturity, investors receive either the original or adjusted principal—whichever is greater.

U.S. agency bonds are issued by government-sponsored enterprises (GSE), and the bonds are guaranteed by the issuing agency, not the full faith and credit of the U.S. government. Since they get implicit support from the U.S. government, they are considered to be of high credit quality. Issuers of agency bonds include the Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac).

High-yield corporates are issued by companies with credit ratings of Ba1 or BB+ or below by Moody's and S&P, respectively, and therefore have a relatively higher risk of default. They are also called "junk bonds." To compensate for that added risk, they tend to pay higher rates of interest than those of their higher-quality peers.

International developed market bonds, also known as foreign bonds, are issued by either a foreign government or foreign corporation in a foreign currency. Developed market bonds tend to have higher credit ratings than emerging market bonds, but they still have varying degrees of economic, political, and social risks. Additionally, investing internationally carries currency risk.

Emerging market bonds

International emerging market bonds (EM bonds) are issued by a government, agency, municipality, or corporation domiciled in a developing country. These investments typically offer higher yields to reflect the elevated risk of default, which can stem from underlying factors such as political instability, poor corporate governance, and currency fluctuations. The asset class is relatively new compared with other sectors of the bond market. EM bonds may be denominated in local currency, U.S. dollars, or other hard currencies.

Preferred securities are considered a hybrid investment, as they share the characteristics of both stocks and bonds. Like bonds, they generally have fixed par values—often just $25—and make scheduled coupon payments. Preferred securities often have very long maturities, or no maturity date at all, meaning they are "perpetual", but they can generally be redeemed by the issuer after a certain amount of time has passed. Like stocks, however, preferred securities generally rank below an issuer's bonds, and their dividends are often (but not always) discretionary. While a missed payment by a bond generally triggers a default, that's not necessarily the case with preferred securities, although it varies by issue. Given the increased risks and their complex characteristics, preferred securities tend to offer relatively high yields.

Bond investing comes with a number of risks, but interest rate risk and credit risk are two of the main risks. Here's a look at some risks that can come with bond investing.

Interest rate risk

Interest rate risk is the risk that a bond's value will fall as interest rates rise. Bond prices and yields move in opposite directions, so when yields are rising, bond values tend to fall in the secondary market. You risk losing principal if you need to sell your bond before it matures, potentially at a lower price than what you paid for it or for what its par value is.

Credit risk

Credit risk is the risk that a security could default if the issuer fails to make timely interest or principal payments. Downgrade risk is also a form of credit risk, as a downgrade in a bond's credit rating could result in a lower price in the secondary market.

Some bonds are sold with a call provision that gives the issuer the option to redeem, or "call", the security after a specified about of time has passed. The bond can usually be called at a specified price—typically its par value. Callable bonds are more likely to be called when interest rates fall and the issuer can issue new bonds with a lower interest rate. If your bond is called, you will likely have to reinvest the proceeds at a lower interest rate than the original security's rate. This can lead to a reduction in annual interest payments, effectively resulting in less income.

Inflation risk

Inflation risk, also known as purchasing power risk, refers to the risk that you could lose purchasing power if inflation picks up. Most bond investments make fixed interest payments, meaning they won't change even if prices elsewhere are rising.

Liquidity risk

Liquidity risk is the measure of how easily a security can be sold without incurring high transaction costs or a reduction in price. We generally suggest investors plan to hold their bonds to maturity, at which time the bond will pay back full par value (assuming no default).

Currency risk

Currency risk, also known as exchange rate risk, is present with bonds that are denominated in foreign currencies. Currency fluctuations can impact bond payments when they are converted to U.S. dollars. If a foreign currency weakens after the bond is purchased, the value of the bond and the income payments may decline, negatively impact your return.

There are several ways to purchase bonds outlined below. (Check out our Guide to How to Buy Bonds to find out what to consider before buying a bond.)

From a bank or broker

You can purchase bonds through from a bank or broker (like Charles Schwab) over the phone or via your online brokerage account.

From the U.S. Department of the Treasury

If you're buying government bonds, you can purchase them directly from the U.S. Department of the Treasury.

Via a mutual fund or exchange-traded fund (ETF)

Both mutual funds and ETFs pool money from many investors to purchase a broad range of investments, which include bonds.

Find bonds that are right for you.

Can Agency Bonds Offer Extra Yield?

Will a Maturity Wall Matter for Investors?

Schwab Market Perspective: Mid-Year Outlook

Assignments: The Basic Law

The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States.

As with many terms commonly used, people are familiar with the term but often are not aware or fully aware of what the terms entail. The concept of assignment of rights and obligations is one of those simple concepts with wide ranging ramifications in the contractual and business context and the law imposes severe restrictions on the validity and effect of assignment in many instances. Clear contractual provisions concerning assignments and rights should be in every document and structure created and this article will outline why such drafting is essential for the creation of appropriate and effective contracts and structures.

The reader should first read the article on Limited Liability Entities in the United States and Contracts since the information in those articles will be assumed in this article.

Basic Definitions and Concepts:

An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” The legal nature of the assignment and the contractual terms of the agreement between the parties determines some additional rights and liabilities that accompany the assignment. The assignment of rights under a contract usually completely transfers the rights to the assignee to receive the benefits accruing under the contract. Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court , 35 Cal. 2d 109, 113-114 (Cal. 1950).

An assignment will generally be permitted under the law unless there is an express prohibition against assignment in the underlying contract or lease. Where assignments are permitted, the assignor need not consult the other party to the contract but may merely assign the rights at that time. However, an assignment cannot have any adverse effect on the duties of the other party to the contract, nor can it diminish the chance of the other party receiving complete performance. The assignor normally remains liable unless there is an agreement to the contrary by the other party to the contract.

The effect of a valid assignment is to remove privity between the assignor and the obligor and create privity between the obligor and the assignee. Privity is usually defined as a direct and immediate contractual relationship. See Merchants case above.

Further, for the assignment to be effective in most jurisdictions, it must occur in the present. One does not normally assign a future right; the assignment vests immediate rights and obligations.

No specific language is required to create an assignment so long as the assignor makes clear his/her intent to assign identified contractual rights to the assignee. Since expensive litigation can erupt from ambiguous or vague language, obtaining the correct verbiage is vital. An agreement must manifest the intent to transfer rights and can either be oral or in writing and the rights assigned must be certain.

Note that an assignment of an interest is the transfer of some identifiable property, claim, or right from the assignor to the assignee. The assignment operates to transfer to the assignee all of the rights, title, or interest of the assignor in the thing assigned. A transfer of all rights, title, and interests conveys everything that the assignor owned in the thing assigned and the assignee stands in the shoes of the assignor. Knott v. McDonald’s Corp ., 985 F. Supp. 1222 (N.D. Cal. 1997)

The parties must intend to effectuate an assignment at the time of the transfer, although no particular language or procedure is necessary. As long ago as the case of National Reserve Co. v. Metropolitan Trust Co ., 17 Cal. 2d 827 (Cal. 1941), the court held that in determining what rights or interests pass under an assignment, the intention of the parties as manifested in the instrument is controlling.

The intent of the parties to an assignment is a question of fact to be derived not only from the instrument executed by the parties but also from the surrounding circumstances. When there is no writing to evidence the intention to transfer some identifiable property, claim, or right, it is necessary to scrutinize the surrounding circumstances and parties’ acts to ascertain their intentions. Strosberg v. Brauvin Realty Servs., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998)

The general rule applicable to assignments of choses in action is that an assignment, unless there is a contract to the contrary, carries with it all securities held by the assignor as collateral to the claim and all rights incidental thereto and vests in the assignee the equitable title to such collateral securities and incidental rights. An unqualified assignment of a contract or chose in action, however, with no indication of the intent of the parties, vests in the assignee the assigned contract or chose and all rights and remedies incidental thereto.

More examples: In Strosberg v. Brauvin Realty Servs ., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998), the court held that the assignee of a party to a subordination agreement is entitled to the benefits and is subject to the burdens of the agreement. In Florida E. C. R. Co. v. Eno , 99 Fla. 887 (Fla. 1930), the court held that the mere assignment of all sums due in and of itself creates no different or other liability of the owner to the assignee than that which existed from the owner to the assignor.

And note that even though an assignment vests in the assignee all rights, remedies, and contingent benefits which are incidental to the thing assigned, those which are personal to the assignor and for his sole benefit are not assigned. Rasp v. Hidden Valley Lake, Inc ., 519 N.E.2d 153, 158 (Ind. Ct. App. 1988). Thus, if the underlying agreement provides that a service can only be provided to X, X cannot assign that right to Y.

Novation Compared to Assignment:

Although the difference between a novation and an assignment may appear narrow, it is an essential one. “Novation is a act whereby one party transfers all its obligations and benefits under a contract to a third party.” In a novation, a third party successfully substitutes the original party as a party to the contract. “When a contract is novated, the other contracting party must be left in the same position he was in prior to the novation being made.”

A sublease is the transfer when a tenant retains some right of reentry onto the leased premises. However, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, then the transfer is an assignment. The assignor is normally also removed from liability to the landlord only if the landlord consents or allowed that right in the lease. In a sublease, the original tenant is not released from the obligations of the original lease.

Equitable Assignments:

An equitable assignment is one in which one has a future interest and is not valid at law but valid in a court of equity. In National Bank of Republic v. United Sec. Life Ins. & Trust Co. , 17 App. D.C. 112 (D.C. Cir. 1900), the court held that to constitute an equitable assignment of a chose in action, the following has to occur generally: anything said written or done, in pursuance of an agreement and for valuable consideration, or in consideration of an antecedent debt, to place a chose in action or fund out of the control of the owner, and appropriate it to or in favor of another person, amounts to an equitable assignment. Thus, an agreement, between a debtor and a creditor, that the debt shall be paid out of a specific fund going to the debtor may operate as an equitable assignment.

In Egyptian Navigation Co. v. Baker Invs. Corp. , 2008 U.S. Dist. LEXIS 30804 (S.D.N.Y. Apr. 14, 2008), the court stated that an equitable assignment occurs under English law when an assignor, with an intent to transfer his/her right to a chose in action, informs the assignee about the right so transferred.

An executory agreement or a declaration of trust are also equitable assignments if unenforceable as assignments by a court of law but enforceable by a court of equity exercising sound discretion according to the circumstances of the case. Since California combines courts of equity and courts of law, the same court would hear arguments as to whether an equitable assignment had occurred. Quite often, such relief is granted to avoid fraud or unjust enrichment.

Note that obtaining an assignment through fraudulent means invalidates the assignment. Fraud destroys the validity of everything into which it enters. It vitiates the most solemn contracts, documents, and even judgments. Walker v. Rich , 79 Cal. App. 139 (Cal. App. 1926). If an assignment is made with the fraudulent intent to delay, hinder, and defraud creditors, then it is void as fraudulent in fact. See our article on Transfers to Defraud Creditors .

But note that the motives that prompted an assignor to make the transfer will be considered as immaterial and will constitute no defense to an action by the assignee, if an assignment is considered as valid in all other respects.

Enforceability of Assignments:

Whether a right under a contract is capable of being transferred is determined by the law of the place where the contract was entered into. The validity and effect of an assignment is determined by the law of the place of assignment. The validity of an assignment of a contractual right is governed by the law of the state with the most significant relationship to the assignment and the parties.

In some jurisdictions, the traditional conflict of laws rules governing assignments has been rejected and the law of the place having the most significant contacts with the assignment applies. In Downs v. American Mut. Liability Ins. Co ., 14 N.Y.2d 266 (N.Y. 1964), a wife and her husband separated and the wife obtained a judgment of separation from the husband in New York. The judgment required the husband to pay a certain yearly sum to the wife. The husband assigned 50 percent of his future salary, wages, and earnings to the wife. The agreement authorized the employer to make such payments to the wife.

After the husband moved from New York, the wife learned that he was employed by an employer in Massachusetts. She sent the proper notice and demanded payment under the agreement. The employer refused and the wife brought an action for enforcement. The court observed that Massachusetts did not prohibit assignment of the husband’s wages. Moreover, Massachusetts law was not controlling because New York had the most significant relationship with the assignment. Therefore, the court ruled in favor of the wife.

Therefore, the validity of an assignment is determined by looking to the law of the forum with the most significant relationship to the assignment itself. To determine the applicable law of assignments, the court must look to the law of the state which is most significantly related to the principal issue before it.

Assignment of Contractual Rights:

Generally, the law allows the assignment of a contractual right unless the substitution of rights would materially change the duty of the obligor, materially increase the burden or risk imposed on the obligor by the contract, materially impair the chance of obtaining return performance, or materially reduce the value of the performance to the obligor. Restat 2d of Contracts, § 317(2)(a). This presumes that the underlying agreement is silent on the right to assign.

If the contract specifically precludes assignment, the contractual right is not assignable. Whether a contract is assignable is a matter of contractual intent and one must look to the language used by the parties to discern that intent.

In the absence of an express provision to the contrary, the rights and duties under a bilateral executory contract that does not involve personal skill, trust, or confidence may be assigned without the consent of the other party. But note that an assignment is invalid if it would materially alter the other party’s duties and responsibilities. Once an assignment is effective, the assignee stands in the shoes of the assignor and assumes all of assignor’s rights. Hence, after a valid assignment, the assignor’s right to performance is extinguished, transferred to assignee, and the assignee possesses the same rights, benefits, and remedies assignor once possessed. Robert Lamb Hart Planners & Architects v. Evergreen, Ltd. , 787 F. Supp. 753 (S.D. Ohio 1992).

On the other hand, an assignee’s right against the obligor is subject to “all of the limitations of the assignor’s right, all defenses thereto, and all set-offs and counterclaims which would have been available against the assignor had there been no assignment, provided that these defenses and set-offs are based on facts existing at the time of the assignment.” See Robert Lamb , case, above.

The power of the contract to restrict assignment is broad. Usually, contractual provisions that restrict assignment of the contract without the consent of the obligor are valid and enforceable, even when there is statutory authorization for the assignment. The restriction of the power to assign is often ineffective unless the restriction is expressly and precisely stated. Anti-assignment clauses are effective only if they contain clear, unambiguous language of prohibition. Anti-assignment clauses protect only the obligor and do not affect the transaction between the assignee and assignor.

Usually, a prohibition against the assignment of a contract does not prevent an assignment of the right to receive payments due, unless circumstances indicate the contrary. Moreover, the contracting parties cannot, by a mere non-assignment provision, prevent the effectual alienation of the right to money which becomes due under the contract.

A contract provision prohibiting or restricting an assignment may be waived, or a party may so act as to be estopped from objecting to the assignment, such as by effectively ratifying the assignment. The power to void an assignment made in violation of an anti-assignment clause may be waived either before or after the assignment. See our article on Contracts.

Noncompete Clauses and Assignments:

Of critical import to most buyers of businesses is the ability to ensure that key employees of the business being purchased cannot start a competing company. Some states strictly limit such clauses, some do allow them. California does restrict noncompete clauses, only allowing them under certain circumstances. A common question in those states that do allow them is whether such rights can be assigned to a new party, such as the buyer of the buyer.

A covenant not to compete, also called a non-competitive clause, is a formal agreement prohibiting one party from performing similar work or business within a designated area for a specified amount of time. This type of clause is generally included in contracts between employer and employee and contracts between buyer and seller of a business.

Many workers sign a covenant not to compete as part of the paperwork required for employment. It may be a separate document similar to a non-disclosure agreement, or buried within a number of other clauses in a contract. A covenant not to compete is generally legal and enforceable, although there are some exceptions and restrictions.

Whenever a company recruits skilled employees, it invests a significant amount of time and training. For example, it often takes years before a research chemist or a design engineer develops a workable knowledge of a company’s product line, including trade secrets and highly sensitive information. Once an employee gains this knowledge and experience, however, all sorts of things can happen. The employee could work for the company until retirement, accept a better offer from a competing company or start up his or her own business.

A covenant not to compete may cover a number of potential issues between employers and former employees. Many companies spend years developing a local base of customers or clients. It is important that this customer base not fall into the hands of local competitors. When an employee signs a covenant not to compete, he or she usually agrees not to use insider knowledge of the company’s customer base to disadvantage the company. The covenant not to compete often defines a broad geographical area considered off-limits to former employees, possibly tens or hundreds of miles.

Another area of concern covered by a covenant not to compete is a potential ‘brain drain’. Some high-level former employees may seek to recruit others from the same company to create new competition. Retention of employees, especially those with unique skills or proprietary knowledge, is vital for most companies, so a covenant not to compete may spell out definite restrictions on the hiring or recruiting of employees.

A covenant not to compete may also define a specific amount of time before a former employee can seek employment in a similar field. Many companies offer a substantial severance package to make sure former employees are financially solvent until the terms of the covenant not to compete have been met.

Because the use of a covenant not to compete can be controversial, a handful of states, including California, have largely banned this type of contractual language. The legal enforcement of these agreements falls on individual states, and many have sided with the employee during arbitration or litigation. A covenant not to compete must be reasonable and specific, with defined time periods and coverage areas. If the agreement gives the company too much power over former employees or is ambiguous, state courts may declare it to be overbroad and therefore unenforceable. In such case, the employee would be free to pursue any employment opportunity, including working for a direct competitor or starting up a new company of his or her own.

It has been held that an employee’s covenant not to compete is assignable where one business is transferred to another, that a merger does not constitute an assignment of a covenant not to compete, and that a covenant not to compete is enforceable by a successor to the employer where the assignment does not create an added burden of employment or other disadvantage to the employee. However, in some states such as Hawaii, it has also been held that a covenant not to compete is not assignable and under various statutes for various reasons that such covenants are not enforceable against an employee by a successor to the employer. Hawaii v. Gannett Pac. Corp. , 99 F. Supp. 2d 1241 (D. Haw. 1999)

It is vital to obtain the relevant law of the applicable state before drafting or attempting to enforce assignment rights in this particular area.

Conclusion:

In the current business world of fast changing structures, agreements, employees and projects, the ability to assign rights and obligations is essential to allow flexibility and adjustment to new situations. Conversely, the ability to hold a contracting party into the deal may be essential for the future of a party. Thus, the law of assignments and the restriction on same is a critical aspect of every agreement and every structure. This basic provision is often glanced at by the contracting parties, or scribbled into the deal at the last minute but can easily become the most vital part of the transaction.

As an example, one client of ours came into the office outraged that his co venturer on a sizable exporting agreement, who had excellent connections in Brazil, had elected to pursue another venture instead and assigned the agreement to a party unknown to our client and without the business contacts our client considered vital. When we examined the handwritten agreement our client had drafted in a restaurant in Sao Paolo, we discovered there was no restriction on assignment whatsoever…our client had not even considered that right when drafting the agreement after a full day of work.

One choses who one does business with carefully…to ensure that one’s choice remains the party on the other side of the contract, one must master the ability to negotiate proper assignment provisions.

Founded in 1939, our law firm combines the ability to represent clients in domestic or international matters with the personal interaction with clients that is traditional to a long established law firm.

September 09, 2019

How courts work, steps in a trial.

Bail is the amount of money defendants must post to be released from custody until their trial. Bail is not a fine. It is not supposed to be used as punishment. The purpose of bail is simply to ensure that defendants will appear for trial and all pretrial hearings for which they must be present. Bail is returned to defendants when their trial is over, in some states minus a processing fee.

The judge or magistrate decides the amount of bail by weighing many factors:

the risk of the defendant fleeing,
the type of crime alleged,
the "dangerousness" of defendants, and
the safety of the community.

Sometimes bail is conditioned on certain behavior of the defendant - for example, that he or she have no contact with the alleged victim.

The judge or magistrate may release defendants on their own recognizance (without a payment of money), on the promise that they will appear for all hearings and for trial. This is usually done if defendants have a steady job, roots in the community, or other personal circumstances indicating that they will not flee.

In most, but not all, states, defendants who can’t come up with the amount of their bail may make arrangements for their release through a bail bondsperson. In return for the defendant's putting up a percentage of the total bond, usually 10 percent, the bondsperson will guarantee the remaining amount to the court should the defendant not be present for any court appearance. In many jurisdictions bail bondspeople are becoming obsolete because courts release defendants upon their payment of 10 percent of the bail to the court.

>>Diagram of How a Case Moves Through the Courts >>Civil and Criminal Cases >>Settling Cases >>Pre-trial Procedures in Civil Cases >>Jurisdiction and Venue >>Pleadings >>Motions >>Discovery >>Pre-Trial Conferences >>Pre-trial Procedures in Criminal Cases >>Bringing the Charge >>Arrest Procedures >>Pre-Trial Court Appearances in Criminal Cases >>Bail >>Plea Bargaining >>Civil and Criminal Trials >>Officers of the Court >>The Jury Pool >>Selecting the Jury >>Opening Statements >>Evidence >>Direct Examination >>Cross-examination >>Motion for Directed Verdict/Dismissal >>Presentation of Evidence by the Defense >>Rebuttal >>Final Motions >>Closing Arguments >>Instructions to the Jury >>Mistrials >>Jury Deliberations >>Verdict >>Motions after Verdict >>Judgment >>Sentencing >>Appeals

How Courts Work Home | Courts and Legal Procedure | *Steps in a Trial* The Human Side of Being a Judge | Mediation

Assignment Clause

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Contract Clauses

Acceleration Clause
Arbitration Clause
Cancellation Clause
Choice of Law Clause
Confidentiality Clause
Consideration Clause
Definitions Clause
Dispute Resolution Clause
Entire Agreement Clause
Escalation Clause
Exclusivity Clause
Exculpatory Clause
Force Majeure Clause
Governing Law Clause
Indemnification Clause
Indemnity Clause
Insurance Clause
Integration Clause
Merger Clause
Non-Competition Clause
Non-Disparagement Clause
Non-Exclusivity Clause
Non-Solicitation Clause
Privacy Clause
Release Clause
Severability Clause
Subordination Clause
Subrogation Clause
Survival Clause
Termination Clause
Time of Essence Clause

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Assignment clause defined.

Assignment clauses are legally binding provisions in contracts that give a party the chance to engage in a transfer of ownership or assign their contractual obligations and rights to a different contracting party.

In other words, an assignment clause can reassign contracts to another party. They can commonly be seen in contracts related to business purchases.

Here’s an article about assignment clauses.

Assignment Clause Explained

Assignment contracts are helpful when you need to maintain an ongoing obligation regardless of ownership. Some agreements have limitations or prohibitions on assignments, while other parties can freely enter into them.

Here’s another article about assignment clauses.

Purpose of Assignment Clause

The purpose of assignment clauses is to establish the terms around transferring contractual obligations. The Uniform Commercial Code (UCC) permits the enforceability of assignment clauses.

Assignment Clause Examples

Examples of assignment clauses include:

Example 1 . A business closing or a change of control occurs
Example 2 . New services providers taking over existing customer contracts
Example 3 . Unique real estate obligations transferring to a new property owner as a condition of sale
Example 4 . Many mergers and acquisitions transactions, such as insurance companies taking over customer policies during a merger

Here’s an article about the different types of assignment clauses.

Assignment Clause Samples

Sample 1 – sales contract.

Assignment; Survival . Neither party shall assign all or any portion of the Contract without the other party’s prior written consent, which consent shall not be unreasonably withheld; provided, however, that either party may, without such consent, assign this Agreement, in whole or in part, in connection with the transfer or sale of all or substantially all of the assets or business of such Party relating to the product(s) to which this Agreement relates. The Contract shall bind and inure to the benefit of the successors and permitted assigns of the respective parties. Any assignment or transfer not in accordance with this Contract shall be void. In order that the parties may fully exercise their rights and perform their obligations arising under the Contract, any provisions of the Contract that are required to ensure such exercise or performance (including any obligation accrued as of the termination date) shall survive the termination of the Contract.

Reference :

Security Exchange Commission - Edgar Database, EX-10.29 3 dex1029.htm SALES CONTRACT , Viewed May 10, 2021, < https://www.sec.gov/Archives/edgar/data/1492426/000119312510226984/dex1029.htm >.

Sample 2 – Purchase and Sale Agreement

Assignment . Purchaser shall not assign this Agreement or any interest therein to any Person, without the prior written consent of Seller, which consent may be withheld in Seller’s sole discretion. Notwithstanding the foregoing, upon prior written notice to Seller, Purchaser may designate any Affiliate as its nominee to receive title to the Property, or assign all of its right, title and interest in this Agreement to any Affiliate of Purchaser by providing written notice to Seller no later than five (5) Business Days prior to the Closing; provided, however, that (a) such Affiliate remains an Affiliate of Purchaser, (b) Purchaser shall not be released from any of its liabilities and obligations under this Agreement by reason of such designation or assignment, (c) such designation or assignment shall not be effective until Purchaser has provided Seller with a fully executed copy of such designation or assignment and assumption instrument, which shall (i) provide that Purchaser and such designee or assignee shall be jointly and severally liable for all liabilities and obligations of Purchaser under this Agreement, (ii) provide that Purchaser and its designee or assignee agree to pay any additional transfer tax as a result of such designation or assignment, (iii) include a representation and warranty in favor of Seller that all representations and warranties made by Purchaser in this Agreement are true and correct with respect to such designee or assignee as of the date of such designation or assignment, and will be true and correct as of the Closing, and (iv) otherwise be in form and substance satisfactory to Seller and (d) such Assignee is approved by Manager as an assignee of the Management Agreement under Article X of the Management Agreement. For purposes of this Section 16.4, “Affiliate” shall include any direct or indirect member or shareholder of the Person in question, in addition to any Person that would be deemed an Affiliate pursuant to the definition of “Affiliate” under Section 1.1 hereof and not by way of limitation of such definition.

Security Exchange Commission - Edgar Database, EX-10.8 3 dex108.htm PURCHASE AND SALE AGREEMENT , Viewed May 10, 2021, < https://www.sec.gov/Archives/edgar/data/1490985/000119312510160407/dex108.htm >.

Sample 3 – Share Purchase Agreement

Assignment . Neither this Agreement nor any right or obligation hereunder may be assigned by any Party without the prior written consent of the other Parties, and any attempted assignment without the required consents shall be void.

Security Exchange Commission - Edgar Database, EX-4.12 3 dex412.htm SHARE PURCHASE AGREEMENT , Viewed May 10, 2021, < https://www.sec.gov/Archives/edgar/data/1329394/000119312507148404/dex412.htm >.

Sample 4 – Asset Purchase Agreement

Assignment . This Agreement and any of the rights, interests, or obligations incurred hereunder, in part or as a whole, at any time after the Closing, are freely assignable by Buyer. This Agreement and any of the rights, interests, or obligations incurred hereunder, in part or as a whole, are assignable by Seller only upon the prior written consent of Buyer, which consent shall not be unreasonably withheld. This Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and permitted assigns.

Security Exchange Commission - Edgar Database, EX-2.1 2 dex21.htm ASSET PURCHASE AGREEMENT , Viewed May 10, 2021, < https://www.sec.gov/Archives/edgar/data/1428669/000119312510013625/dex21.htm >.

Sample 5 – Asset Purchase Agreement

Assignment; Binding Effect; Severability

This Agreement may not be assigned by any party hereto without the other party’s written consent; provided, that Buyer may transfer or assign in whole or in part to one or more Buyer Designee its right to purchase all or a portion of the Purchased Assets, but no such transfer or assignment will relieve Buyer of its obligations hereunder. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the successors, legal representatives and permitted assigns of each party hereto. The provisions of this Agreement are severable, and in the event that any one or more provisions are deemed illegal or unenforceable the remaining provisions shall remain in full force and effect unless the deletion of such provision shall cause this Agreement to become materially adverse to either party, in which event the parties shall use reasonable commercial efforts to arrive at an accommodation that best preserves for the parties the benefits and obligations of the offending provision.

Security Exchange Commission - Edgar Database, EX-2.4 2 dex24.htm ASSET PURCHASE AGREEMENT , Viewed May 10, 2021, < https://www.sec.gov/Archives/edgar/data/1002047/000119312511171858/dex24.htm >.

Common Contracts with Assignment Clauses

Common contracts with assignment clauses include:

Real estate contracts
Sales contract
Asset purchase agreement
Purchase and sale agreement
Bill of sale
Assignment and transaction financing agreement

Assignment Clause FAQs

Assignment clauses are powerful when used correctly. Check out the assignment clause FAQs below to learn more:

What is an assignment clause in real estate?

Assignment clauses in real estate transfer legal obligations from one owner to another party. They also allow house flippers to engage in a contract negotiation with a seller and then assign the real estate to the buyer while collecting a fee for their services. Real estate lawyers assist in the drafting of assignment clauses in real estate transactions.

What does no assignment clause mean?

No assignment clauses prohibit the transfer or assignment of contract obligations from one part to another.

What’s the purpose of the transfer and assignment clause in the purchase agreement?

The purpose of the transfer and assignment clause in the purchase agreement is to protect all involved parties’ rights and ensure that assignments are not to be unreasonably withheld. Contract lawyers can help you avoid legal mistakes when drafting your business contracts’ transfer and assignment clauses.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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Assignment of Bond Claim Rights – Can You Contract Around Bond Limitations?

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Need to file a Bond Claim?

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The general American rule is that all contractual rights are assign-able provided none of the following conditions are met: 1) the contract has clear language explicitly prohibiting assignment; 2) the assignment would substantially and materially change the obligor’s duty and/or materially effect an insurer’s burden or risk; 3) the assignment would materially reduce the contract’s value; or 4) the assignment is forbidden by statute or public policy.

Many surety bonds, similar to insurance policies, have language purporting to expressly forbid the assignment of rights. Courts, however, may or may not accept the contractual language as prohibiting all assignments, despite the language attempting to do so. In an Ohio case, the court allowed an assignment of rights under a performance bond, but tailored the opinion fairly narrowly. In that case, the court noted that” the policies supporting contractual freedom to limit assignment do not apply when the obligee is assigning only a cause of action and does not itself owe performance of any duties”. That is, the right to proceed against the bond is assignable, but only when the obligee (assignor) has taken all of the steps necessary to give rise to the duty of the surety to perform according to the terms of the bond itself. How this applies to rights to proceed against a payment bond is debatable, but may provide some guidance.

Even after this has been accomplished, however, there is still the question of what exactly is assigned. It is a clear rule that a party can assign only their own rights and/or duties. That is, an assignment of rights under a contract cannot create “new” rights not present in the contract itself, it merely shifts those rights to a different party. Therefore, when the right to recover from a bond is the assignment at issue, there can be some interesting problems.

The right to make a claim against the bond on a project is, among other technical requirements, conditioned upon the fact that the party making the claim has not been paid. Which, when you think about it, is clear. If the party gets paid, there is no need to seek payment from the bond in the first place. So, in order for a non-protected party to recover from the bond if the bond claim is assignable, does that mean that what is being assigned is the “position in the project” rather than the right to make a claim itself? For example take a supplier(B) to a supplier(A) on a Miller Act project. Supplier(A) has a right to make a claim against the bond if unpaid for the materials provided. That right is conditioned upon 1) the supplying of those materials; and 2) not being paid. Therefore, if supplier(A) is paid, he no longer has any rights against the bond to assign, and if he isn’t paid it will be much more unlikely that he will want to assign his rights to supplier(B).

Sample Assignment Available: Here

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Understanding Jail Bonds: How They Work and What You Need to Know

Table of Contents

Jail bonds play a crucial role in the legal system, providing individuals with an opportunity to secure their release from jail while awaiting trial. If you or someone you know has been arrested, it’s essential to understand how jail bonds work and the various types available. In this article, we will explore common questions about jail bonds and provide detailed explanations to help you navigate this complex process on how do jail bonds work.

What is a jail bond and how does it work?

A jail bond, also known as a bail bond, is a legal instrument that allows an accused individual to secure their release from jail before their trial. When a person is arrested, they are typically taken into custody, and a bail amount is set by a judge. The bail serves as a financial guarantee that the accused will appear in court for their trial. A jail bond works by providing the court with an alternative to keeping the accused person in jail until their trial. Instead, a bail bondsman, or bond agent, issues a bond on behalf of the defendant, guaranteeing the full bail amount.

Example: Let’s say John is arrested and his bail is set at $10,000. If John or his family cannot afford to pay the full amount, they can seek the assistance of a bail bondsman. The bondsman will require a non-refundable fee, typically around 10% of the bail amount, and put up collateral, such as property or assets, to cover the remaining bail. Once the bond is issued, John is released from jail, and he must appear in court on the scheduled date. If John fails to appear, the bondsman may be responsible for paying the full bail amount to the court.

How does a bail bond work in jail?

A bail bond works by providing a financial guarantee to the court that the defendant will appear for their trial. When a bail bond is issued, the bondsman assumes the responsibility of ensuring the defendant’s presence in court. If the defendant fails to appear, the bondsman may hire a bounty hunter to locate and apprehend the defendant, or they may need to pay the full bail amount to the court.

Example: Sarah is arrested and her bail is set at $20,000. Sarah’s family contacts a bail bondsman, who agrees to issue a bail bond for a fee of 10% ($2,000) and collateral worth $18,000. The bondsman pays the bail amount to the court, and Sarah is released from jail. Sarah must now fulfill her obligation by attending all court hearings. If she complies, the bond will be discharged, and the collateral will be returned to the bondsman. However, if Sarah fails to appear in court, the bondsman may use the collateral to cover the bail amount and seek reimbursement from Sarah and her family.

How do you post bond to get out of jail?

To post bond and secure release from jail, you have several options:

a) Paying the full bail amount: If you can afford it, you can pay the entire bail amount in cash or using acceptable forms of payment directly to the court. Once the payment is made, you will be released from jail.

b) Seeking the help of a bail bondsman: If you don’t have the full bail amount, you can contact a bail bondsman. The bondsman will charge a non-refundable fee, usually a percentage of the bail amount, and may require collateral. Once the bondsman issues the bond, you will be released from jail.

Example: Mark is arrested, and his bail is set at $50,000. Mark’s family doesn’t have the full amount, so they contact a bail bondsman. The bondsman charges a 10% fee ($5,000) and requires collateral worth $45,000. Mark’s family pays the fee, provides the collateral, and the bondsman issues the bond. Mark is released from jail pending his trial.

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How long does it take to bond out of jail?

The time it takes to bond out of jail can vary depending on several factors, including the availability of a bail bondsman, the complexity of the case, and the workload of the court. In some cases, the process can be completed within a few hours, while in others, it may take several days.

Example: Mary is arrested, and her bail is set at $15,000. Her family contacts a bail bondsman, who immediately begins working on the case. The bondsman verifies the collateral, completes the paperwork, and submits it to the court. Within a few hours, the bond is approved, and Mary is released from jail. In this instance, the entire process took only a few hours.

How long does it take to get a bond in jail?

The timeframe for getting a bond in jail depends on similar factors as mentioned above, such as the availability of a bail bondsman and the workload of the court. It’s important to note that the bond process cannot begin until the bail amount has been set by a judge.

Example: James is arrested, and it takes two days for his bail amount to be determined by the court. Once the bail is set at $25,000, James’ family contacts a bail bondsman. The bondsman reviews the case, arranges for collateral, and completes the necessary paperwork. The entire process, from contacting the bondsman to James’ release from jail, takes three days.

What happens if you can’t afford to pay the bail or obtain a bond?

If you can’t afford to pay the bail amount or obtain a bond, you may have a few options:

a) Requesting a bail reduction: You or your attorney can petition the court to reduce the bail amount, arguing that it is excessively high and not proportionate to the alleged offense. The court will review the request and make a decision.

b) Exploring alternative release options: Some jurisdictions offer alternative release programs that allow non-violent offenders to be released without paying bail. These programs may include pretrial services, electronic monitoring, or supervised release.

c) Seeking assistance from a bail assistance organization: Some nonprofit organizations and charities provide assistance to individuals who cannot afford bail. They may offer financial support or connect you with resources to help secure your release.

Example: Sarah is arrested, but her bail is set at $100,000, which she cannot afford. Her attorney files a motion to request a bail reduction, citing Sarah’s strong ties to the community and lack of previous criminal history. The court agrees to reduce the bail amount to $25,000, which Sarah’s family can now manage. They contact a bail bondsman and arrange for the bond, ensuring Sarah’s release from jail.

Can the bail amount be refunded?

The refundability of the bail amount depends on the specific circumstances of the case. Generally, if a cash bond is paid in full directly to the court, it may be refunded after the case is resolved, regardless of the outcome. However, fees and administrative costs deducted by the court may reduce the refunded amount. Bail bonds issued by a bail bondsman are typically non-refundable, as the fee paid to the bondsman is considered the cost of their service.

Example: John pays a cash bond of $2,000 directly to the court. After his trial, where he is found not guilty, the court refunds the full $2,000 to him. On the other hand, Mary uses a bail bondsman and pays a 10% fee ($5,000) for a bond with a bail amount of $50,000. Regardless of the outcome of her trial, the $5,000 fee paid to the bondsman is non-refundable.

What happens if you fail to appear in court after posting bail?

If you fail to appear in court after posting bail, it is considered a violation of the terms of your release. The court may issue a warrant for your arrest, and the bond may be forfeited. The bail bondsman may then have the right to apprehend you using a bounty hunter or may be required to pay the full bail amount to the court.

Example: David is released from jail after posting bail. However, he decides not to appear in court on the scheduled date. The court issues a warrant for his arrest, and the bail bondsman, who issued the bond on David’s behalf, now has the responsibility to locate him. If the bondsman cannot find David, they may have to pay the full bail amount to the court.

Can the bail amount be increased after it has been set?

Yes, in certain circumstances, the bail amount can be increased after it has been initially set. This usually occurs when new information or evidence is presented that indicates a higher risk of flight or danger to the community. The prosecution or the court can request a bail increase, and the judge will evaluate the merits of the request before making a decision.

Example: Mark is charged with a serious offense, and his bail is initially set at $50,000. However, during the bail hearing, the prosecution presents evidence suggesting that Mark has significant financial resources hidden overseas and may be a flight risk. The judge decides to increase the bail amount to $500,000 to mitigate the risk of Mark fleeing the jurisdiction.

Can the bail conditions be modified after they have been set?

Yes, the bail conditions can be modified after they have been initially set. If there are changes in the circumstances or if the defendant can demonstrate a legitimate reason for modifying the conditions, they can request a modification. The court will review the request and consider factors such as the nature of the offense, the defendant’s criminal history, and the risk of flight or danger to the community.

Example: Lisa is released on bail with the condition that she must report to a pretrial services office once a week. However, due to a change in her work schedule, she finds it difficult to comply with this condition. Lisa files a motion requesting a modification of the reporting requirement, proposing an alternative schedule that better suits her availability. The court reviews the request and grants the modification, allowing Lisa to report biweekly instead.

Are there any consequences for violating the conditions of bail?

Yes, there can be consequences for violating the conditions of bail. If a defendant fails to comply with the bail conditions, it can result in various outcomes, such as:

a) Revocation of bail: The court may choose to revoke the defendant’s bail, leading to their immediate arrest and detention until their trial.

b) Additional conditions or restrictions: The court may impose stricter conditions or restrictions on the defendant’s release, such as electronic monitoring or house arrest.

c) Forfeiture of bail: If the defendant’s non-compliance is deemed significant, the court may order the forfeiture of the bail amount or bond posted.

Example: Robert is released on bail with the condition that he must refrain from contacting the victim. However, he repeatedly violates this condition by sending threatening messages to the victim. The court revokes Robert’s bail and orders his immediate arrest, leading to his detention until the trial. Additionally, the court forfeits the bail amount or bond posted by Robert or his surety.

Are there any alternatives to bail?

Yes, there are alternatives to traditional cash bail. These alternatives are designed to ensure the defendant’s appearance in court without requiring them to pay a monetary amount upfront. Some common alternatives include:

a) Release on recognizance (ROR): In this case, the defendant is released from custody based on their promise to appear in court as required, without having to pay bail or obtain a bond. ROR is typically granted to individuals with minimal flight risk and non-violent offenses.

b) Conditional release : The defendant is released under specific conditions that they must comply with, such as attending counseling programs, drug testing, or regular check-ins with a pretrial officer.

c) Unsecured bond: Instead of paying a bail amount upfront, the defendant signs an agreement stating that they will be liable for a specified amount if they fail to appear in court. No money is paid initially, but the defendant may owe the specified amount if they violate the conditions.

Example: Michelle, charged with a minor offense and having strong community ties, is released on her own recognizance, with no need to pay bail. She signs a document promising to appear in court as required. Another example is Jason, who is released with a conditional release that includes attending anger management classes and submitting to regular drug tests. He must comply with these conditions during the pretrial period.

Can a person be denied bail altogether?

Yes, there are situations where a person can be denied bail altogether. Bail can be denied if the court determines that the defendant poses a significant risk of flight or danger to the community. Factors that may contribute to the denial of bail include the seriousness of the offense, the defendant’s criminal history, the likelihood of the defendant interfering with witnesses or tampering with evidence, and the potential threat they may pose to public safety.

Example: John is charged with multiple counts of armed robbery, and there is strong evidence linking him to the crimes. The court determines that John is a flight risk due to his previous history of failing to appear in court and the severity of the charges against him. Based on these factors, the court denies John’s request for bail, and he remains in custody until his trial.

Can a person be held in custody without bail?

Yes, in certain circumstances, a person can be held in custody without bail. This is typically referred to as “remand” or “pretrial detention.” If the court determines that the defendant poses an extreme flight risk, a danger to the community, or if there is a high probability of the defendant interfering with the judicial process, they may be held in custody without the possibility of bail.

Example: Sarah is arrested for a series of violent offenses, and there is evidence suggesting that she has connections to organized crime. The court concludes that Sarah poses a significant threat to public safety and is likely to interfere with witnesses or tamper with evidence. As a result, the court decides to hold Sarah in custody without bail until her trial.

Can a person request a bail reduction?

Yes, a person can request a bail reduction if they believe that the initially set bail amount is excessive or beyond their financial means. To request a bail reduction, the defendant or their attorney can file a motion with the court, providing compelling reasons for the reduction. The court will consider factors such as the defendant’s ability to pay, their ties to the community, the nature of the offense, and the risk of flight.

Example: David is charged with a non-violent offense, and the court sets his bail at $100,000. However, David’s financial situation has significantly changed since the bail was set, and he can no longer afford the amount. His attorney files a motion requesting a bail reduction, presenting evidence of his financial hardship. The court reviews the motion and decides to lower David’s bail to $25,000, taking into account his financial circumstances.

Can a person be released on bail multiple times?

Yes, a person can be released on bail multiple times, depending on the circumstances of each case. Each arrest and charge is considered separately, and bail is set accordingly. However, if a person repeatedly violates bail conditions or poses an increased flight risk based on new charges, subsequent requests for bail may be more challenging.

Example: Amanda was initially released on bail for a drug-related offense. While awaiting trial, she is arrested again for a separate charge related to theft. Amanda’s lawyer can request bail for the new charge, and if granted, she may be released on bail for the second offense while still facing the pending trial for the first offense.

Remember, the specifics of bail and its applications can vary depending on the jurisdiction and the unique circumstances of each case. It is advisable to consult with an attorney who can provide accurate and relevant information based on the local laws and regulations governing bail.

Can a person on bail leave the country?

The ability of a person on bail to leave the country depends on the conditions set by the court. In some cases, the court may impose travel restrictions as part of the bail conditions, which would prohibit the person from leaving the jurisdiction without prior permission. Violating these conditions can have serious consequences, including revocation of bail and additional legal trouble. It is crucial to comply with any travel restrictions set by the court and seek permission if necessary.

Example: Mark is granted bail for a white-collar crime he is accused of committing. As part of his bail conditions, the court imposes a travel restriction, requiring Mark to surrender his passport and seek permission from the court if he intends to travel outside the country. If Mark fails to comply with this condition and leaves the country without permission, he risks having his bail revoked and facing additional charges for violating the terms of his release.

Can a person’s bail be revoked?

Yes, a person’s bail can be revoked if they fail to comply with the conditions set by the court. Common reasons for bail revocation include violating travel restrictions, committing new offenses while on bail, tampering with evidence or witnesses, or failing to appear in court as required. When bail is revoked, the person is typically taken back into custody until their trial or until new bail conditions are set.

Example: Lisa is released on bail for a fraud charge and is explicitly instructed not to contact any of the victims involved in the case. However, she attempts to intimidate a witness by sending threatening messages. When the court becomes aware of this violation, they revoke Lisa’s bail, deeming her a danger to the judicial process and potential witnesses. Lisa is arrested and held in custody until her trial.

Can a person who cannot afford bail receive financial assistance?

In some cases, individuals who cannot afford bail may be eligible for financial assistance programs or services. Non-profit organizations, community funds, or bail funds may exist to help indigent individuals secure their release from custody. These programs typically assess the financial situation and the merits of the case to determine if assistance can be provided. However, the availability of such programs can vary depending on the jurisdiction.

Example: John is unable to afford the bail set for him following an arrest. His attorney helps him apply for a bail assistance program offered by a local non-profit organization. After evaluating his financial situation and the nature of the charges, John is deemed eligible for financial assistance. The non-profit organization pays a portion of his bail, allowing John to secure his release from custody.

Can a person be granted bail for any type of offense?

In general, bail can be granted for a wide range of offenses, from minor misdemeanors to serious felonies. However, the specific conditions for granting bail may vary depending on the jurisdiction and the nature of the offense. In cases involving violent crimes, repeat offenses, or high flight risk, bail may be more difficult to obtain or may be set at a higher amount.

Example: Maria is arrested for shoplifting, a relatively minor offense. The court determines that Maria does not pose a significant risk of flight or danger to the community. Based on these factors, the court grants her bail, allowing her to be released from custody while awaiting trial.

Remember, the bail system can be complex, and its intricacies may differ based on the jurisdiction and the circumstances of each case. Consulting with a legal professional familiar with the local laws and regulations is essential for accurate and personalized guidance.

Can a person be denied bail?

Yes, a person can be denied bail under certain circumstances. The court may deny bail if the individual poses a significant flight risk, is considered a danger to the community, or if there is substantial evidence suggesting they may tamper with witnesses or obstruct the legal process. Additionally, if the offense is particularly serious, such as a capital offense or a violent crime, the court may be more inclined to deny bail. Ultimately, the decision to grant or deny bail rests with the judge, who considers various factors and exercises their discretion based on the specific case.

Example: Sarah is arrested for a series of violent crimes, including armed robbery and assault. The prosecution presents compelling evidence of Sarah’s involvement, including surveillance footage and eyewitness testimonies. Given the severity of the charges and the potential danger Sarah poses to the community, the court decides to deny her bail, considering her a significant risk if released before trial.

Can bail conditions be modified?

Yes, bail conditions can be modified under certain circumstances. If there are changes in the defendant’s situation or if new information comes to light that warrants a modification, it is possible to request a change in the conditions. Common reasons for modifying bail conditions include changes in residence, employment, or family circumstances. However, any modifications to the bail conditions must be approved by the court, which evaluates the request and considers the interests of justice and the safety of the community.

Example: Michael, who is out on bail, has recently found new employment in a different city. He wants to request a modification to his bail conditions to allow him to move and continue working. Michael’s attorney files a motion with the court, providing evidence of the job offer and demonstrating that the move will not pose a flight risk or interfere with the legal proceedings. After considering the request, the court approves the modification, allowing Michael to relocate and maintain his employment while on bail.

Can the bail amount be increased?

Yes, the bail amount can be increased under certain circumstances. If new information emerges that suggests the original bail amount is inadequate to ensure the defendant’s appearance in court or to protect the community, the prosecution or the court may request an increase in bail. Factors such as the severity of the offense, the defendant’s criminal history, and the likelihood of flight can influence the decision to increase the bail amount.

Example: Emily is initially granted bail for a drug trafficking charge, with the bail amount set at $50,000. However, the prosecution presents evidence showing that Emily is part of a larger drug cartel and has access to significant financial resources. Concerned that the original bail amount may not be sufficient to deter Emily from fleeing, the court decides to increase the bail to $500,000, considering the seriousness of the offense and the potential flight risk.

Can bail be paid in installments?

In some cases, bail can be paid in installments, depending on the jurisdiction and the court’s discretion. This option allows defendants or their families to pay a percentage of the bail amount initially and make regular payments until the full amount is paid. However, it’s important to note that this option may not be available in all jurisdictions, and it is ultimately up to the court to determine whether installment payments are permitted.

Example: James, who is unable to pay the full bail amount upfront, requests to pay his bail in installments. The court reviews James’ financial situation and determines that he can afford to make monthly payments. As a result, the court approves his request, allowing him to pay the bail in manageable installments until the full amount is settled.

Remember, the bail process and its specific provisions may vary from one jurisdiction to another. It is essential to consult with a legal professional who can provide guidance.

Can bail be revoked?

Yes, bail can be revoked under certain circumstances. If a defendant violates the conditions of their bail or engages in criminal behavior while released, the court may revoke their bail. Common reasons for bail revocation include failure to appear in court, committing new offenses, tampering with witnesses, or violating any other conditions set by the court. Revoking bail means the defendant will be taken back into custody until their trial or until a new bail hearing is held.

Example: John, who is out on bail for a drug possession charge, is found to be in possession of illegal substances during a routine check by law enforcement. This constitutes a violation of the conditions of his bail. As a result, the court revokes John’s bail, and he is taken back into custody pending his trial.

Can bail be refunded if the defendant is found not guilty?

In some cases, bail can be refunded if the defendant is found not guilty or if the charges against them are dismissed. However, the specific rules regarding bail refunds can vary depending on the jurisdiction. Some jurisdictions automatically refund the bail amount in such cases, while others may require the defendant or their legal representative to file a request for a refund. It’s important to note that any administrative fees or charges associated with the bail process may be deducted before the refund is issued.

Example: Sarah is charged with assault, and her family pays a bail amount of $10,000 for her release. After a trial, Sarah is found not guilty as the evidence presented does not establish her involvement in the alleged assault. In this scenario, Sarah or her legal representative would typically submit a request for a refund of the bail amount, subject to any applicable administrative deductions.

Can bail be transferred to a different jurisdiction?

In certain situations, bail can be transferred to a different jurisdiction. This usually occurs when a defendant who is released on bail needs to travel to another jurisdiction for specific purposes, such as attending court hearings or meetings with their legal team. The process of transferring bail involves obtaining permission from the court overseeing the original case and coordinating with the court in the new jurisdiction to accept the transferred bail. It’s important to follow the proper legal procedures and seek the guidance of legal professionals when considering bail transfer.

Example: Alex, who is released on bail in California, needs to travel to New York for an important meeting with their attorney. Alex’s legal team files a motion with the court in California, explaining the purpose of the travel and requesting permission to transfer the bail to the jurisdiction in New York. If the court grants the request, Alex can travel to New York while still adhering to the conditions of their bail.

Can bail be denied for certain offenses?

Yes, bail can be denied for certain offenses deemed particularly serious or heinous. The specific offenses for which bail can be denied vary by jurisdiction, but typically they include capital offenses, violent crimes, and offenses that pose a significant threat to public safety. The court considers the nature of the offense, the strength of the evidence, and the potential danger to the community when determining whether to deny bail.

Example: Mark is arrested for a series of murders committed in a particularly brutal manner. Given the severity of the charges and the overwhelming evidence against him, the court determines that Mark poses a significant risk to the community if released on bail. Therefore, the court denies his bail, ensuring he remains in custody until his trial.

Remember, bail laws and procedures can vary between jurisdictions. It is crucial to consult with legal professionals or refer to the specific laws and regulations in your jurisdiction for accurate and up-to-date information.

Can bail conditions include electronic monitoring?

Yes, bail conditions can include electronic monitoring in certain cases. Electronic monitoring, often in the form of ankle bracelets, is a way to track a defendant’s movements while they are out on bail. It is commonly used when the court believes that monitoring the defendant’s location and activities is necessary to ensure compliance with the conditions of their release. Electronic monitoring can be particularly useful in cases involving serious offenses, flight risks, or repeat offenders.

Example: David is charged with embezzlement, and the court grants him bail but imposes the condition of electronic monitoring. David is required to wear an ankle bracelet that tracks his location and movement. This allows the court and law enforcement to ensure he adheres to the designated boundaries and does not attempt to flee or engage in any prohibited activities while on bail.

Can bail conditions restrict contact with certain individuals?

Yes, bail conditions can restrict contact with certain individuals, especially if those individuals are involved in the case or pose a potential threat to the alleged victim or witnesses. Restricting contact may include maintaining a specific distance from the individuals or refraining from any communication, directly or indirectly, through various means such as phone calls, emails, or social media. These conditions aim to protect the integrity of the legal proceedings and ensure the safety of all parties involved.

Example: Sarah is charged with domestic violence against her spouse, John. As a condition of her bail, Sarah is prohibited from contacting John or going near their residence. This condition is imposed to protect John from potential harm and to maintain the integrity of the ongoing legal proceedings.

Can bail conditions require surrendering passports or travel restrictions?

Yes, bail conditions can include surrendering passports or imposing travel restrictions, especially when there is a concern that the defendant may attempt to flee the jurisdiction. Surrendering passports prevents the defendant from leaving the country while they are on bail. Travel restrictions may limit the defendant’s ability to travel outside of a specified geographical area without prior permission from the court.

Example: Lisa, who is facing charges of financial fraud, is granted bail but is required to surrender her passport to the court. Additionally, she is placed under a travel restriction that prohibits her from leaving the state without obtaining permission from the court. These conditions are imposed to mitigate the risk of Lisa fleeing the jurisdiction before her trial.

Remember, bail conditions can vary depending on the circumstances of the case, the jurisdiction, and the discretion of the court. It’s essential to consult with legal professionals or refer to the specific laws and regulations in your jurisdiction for accurate information regarding bail conditions.

Can bail be forfeited?

Yes, bail can be forfeited if the defendant fails to appear in court as required or violates the bail conditions. When bail is forfeited, the court orders the seizure of the bail amount, and it is not returned to the defendant or the person who posted it. The forfeiture serves as a penalty for the defendant’s non-compliance and may also result in the issuance of a warrant for their arrest.

Example: Michael is released on bail pending his trial for theft charges. However, he fails to appear in court on the scheduled date without a valid reason. As a result, the court declares his bail forfeited, and the bail amount is seized by the court. A warrant is then issued for Michael’s arrest.

Can bail be paid with credit cards?

In many jurisdictions, it is possible to pay bail using credit cards. Courts and bail bond companies may accept credit card payments as a convenient method for posting bail. However, it’s important to note that using a credit card for bail may involve additional fees or transaction costs, and the availability of this option may vary depending on the jurisdiction and the policies of the court or bail bondsman.

Example: John’s bail is set at $5,000, and he decides to use his credit card to pay the bail amount. He provides the necessary credit card information to the court or bail bondsman, who processes the payment. John’s credit card is charged for the bail amount, and upon successful payment, he is released from custody.

Can bail be paid with property?

In some cases, bail can be paid with property, such as real estate or valuable assets. This option is commonly known as property bail or property bond. To use property as bail, the value of the property must typically exceed the bail amount. The court will assess the value of the property and may require documentation or appraisals to verify its worth. If approved, the property will be used as collateral, and if the defendant fails to appear in court, the court may seize and sell the property to cover the bail amount.

Example: Lisa’s bail is set at $50,000, and she owns a piece of real estate worth $100,000. She requests to use her property as bail collateral and provides the necessary documentation to the court. After assessing the property’s value and ensuring its eligibility, the court approves her request. If Lisa fails to appear in court, the court may seize and sell the property to cover the bail amount.

Can bail be paid with a cashier’s check?

In many cases, bail can be paid with a cashier’s check. A cashier’s check is a secure form of payment issued by a bank or financial institution, guaranteeing the availability of funds. Courts and bail bond companies often accept cashier’s checks as a reliable method for posting bail. However, it’s important to confirm with the relevant authorities or bail bondsmen to ensure that cashier’s checks are accepted as a form of payment in a specific jurisdiction.

Example: Robert’s bail is set at $20,000, and he obtains a cashier’s check from his bank for the full bail amount. He presents the cashier’s check to the court or bail bond company as payment for his bail. Upon verification and acceptance of the cashier’s check, Robert’s bail is posted, and he can be released from custody.

Please note that the availability and acceptance of different payment methods for bail may vary depending on the jurisdiction and the policies of the court or bail bond companies involved.

Can bail be paid with a personal check?

The acceptance of personal checks for bail payments can vary depending on the jurisdiction and the policies of the court or bail bond companies. Some jurisdictions may accept personal checks as a form of payment for bail, while others may not. It is essential to check with the relevant authorities or bail bondsmen to determine if personal checks are accepted in a specific jurisdiction.

Example: Emily’s bail is set at $15,000, and she decides to pay using a personal check. She writes a check for the full bail amount and presents it to the court or bail bond company. The check goes through the usual process of verification, including confirming sufficient funds and verifying the account holder’s identity. If the check is accepted, Emily’s bail is posted, and she can be released from custody.

Can bail be paid with a money order?

In many cases, bail can be paid with a money order. A money order is a prepaid form of payment issued by a bank or other financial institutions. It functions as a guaranteed payment method and can be used to post bail. Courts and bail bond companies often accept money orders as a secure form of payment. However, it’s important to verify with the relevant authorities or bail bondsmen to ensure that money orders are accepted in a specific jurisdiction.

Example: David’s bail is set at $8,000, and he decides to use a money order to pay his bail. He purchases a money order for the full bail amount from a bank or financial institution and submits it to the court or bail bond company. The money order is verified and accepted as payment, and David’s bail is posted, allowing him to be released from custody.

Can bail be paid with a wire transfer?

In certain cases, bail payments can be made through a wire transfer. A wire transfer involves electronically transferring funds from one bank account to another. Some courts and bail bond companies may accept wire transfers as a method for posting bail. However, it’s crucial to confirm with the relevant authorities or bail bondsmen if wire transfers are accepted as a form of payment in a particular jurisdiction.

Example: Michael’s bail is set at $25,000, and he chooses to make a wire transfer for the bail amount. He initiates a wire transfer from his bank account to the designated account provided by the court or bail bond company. After the transfer is successfully completed and verified, Michael’s bail is posted, and he can be released from custody.

Can bail be paid with cryptocurrency?

The acceptance of cryptocurrency for bail payments is still relatively uncommon and depends on the jurisdiction and the policies of the court or bail bond companies. Cryptocurrency, such as Bitcoin or Ethereum, is a digital form of currency that operates on a decentralized network. While some jurisdictions may be open to accepting cryptocurrency as a form of payment for bail, it is essential to consult with the relevant authorities or bail bondsmen to determine if this option is available.

Example: Jacob’s bail is set at $50,000, and he inquires about paying with cryptocurrency. After discussing with the court and bail bond company, they agree to accept Bitcoin as a form of payment. Jacob transfers the equivalent value of $50,000 in Bitcoin to the provided cryptocurrency wallet address. Once the transfer is confirmed, his bail is considered paid, and he can be released from custody.

Please note that the acceptance of various payment methods for bail can vary depending on the jurisdiction, the policies of the court or bail bond companies, and the specific circumstances of the case. It is crucial to consult with the relevant authorities or bail bondsmen to understand the accepted payment options in a particular jurisdiction.

Can bail be paid with collateral?

In some cases, bail can be paid using collateral. Collateral refers to assets or property that can be used as security against the bail amount. By offering collateral, such as real estate, vehicles, or valuable possessions, the defendant or their representative can secure their release from custody. However, the acceptance of collateral as payment for bail may vary depending on the jurisdiction and the policies of the court or bail bond companies.

Example: Sarah’s bail is set at $100,000, and she doesn’t have sufficient funds to pay the full amount. Instead, she offers her family’s property as collateral to secure her release. The court or bail bond company assesses the value and authenticity of the property. If it meets their requirements, they accept it as collateral, and Sarah can be released from custody. In the event that Sarah fails to appear in court as required, the property may be seized to cover the bail amount.

Can bail be paid using a property bond?

In some jurisdictions, defendants or their representatives can use a property bond to secure their release from custody. A property bond involves using real estate as collateral to cover the bail amount. The court assesses the value and validity of the property, and if it meets the requirements, it can be used as security. However, the acceptance of property bonds may vary depending on the jurisdiction and the policies of the court.

Example: Mark’s bail is set at $200,000, and he offers his residential property as a property bond. The court or bail bond company evaluates the property’s value, ownership, and other relevant factors. If the property is deemed acceptable, it can be used as collateral, and Mark can be released from custody. In the event that Mark fails to appear in court, the property may be subject to forfeiture.

Can bail be paid through a bail bond company?

Yes, in many cases, individuals who are unable to pay the full bail amount can seek assistance from a bail bond company. Bail bond companies, also known as bail bondsmen, provide a financial guarantee to the court on behalf of the defendant. They charge a non-refundable fee, typically a percentage of the total bail amount, and assume the responsibility of ensuring the defendant’s appearance in court.

Example: Lisa’s bail is set at $50,000, but she doesn’t have the means to pay the full amount. She contacts a bail bond company and provides the necessary information and collateral. The bail bond company charges her a fee, let’s say 10% of the bail amount ($5,000), and posts the bail on her behalf. Lisa is released from custody, and the bail bond company becomes responsible for ensuring her appearance in court. If Lisa fails to appear, the bail bond company may employ a bounty hunter to locate and apprehend her.

It’s important to note that the availability of certain payment options for bail, such as collateral, installments, property bonds, or bail bond companies, may vary depending on the jurisdiction and the specific circumstances of the case. Consulting with the relevant authorities or bail bondsmen is crucial to understand the available options for paying bail in a particular jurisdiction.

One Response

This sounds like a typical government ploy to take another bite out of a citizens earned labor. Taxes, fines are just ways of robbing citizens of their earnings. In some respect, the Mafia are more honest. At least, you know their game is theft of your money or property. The government likes to make us think there is an air of honesty in everything they do, which if you have a working neuron in your head is complete doo-doo.

Practical Law UK Glossary 1-107-6442 (Approx. 4 pages)

Lending: General
After Death
General Contract and Boilerplate
Security and Quasi Security

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Assignment and novation

19 Aug 2011, 4:40 pm

Assignment involves the transfer of an interest or benefit from one person to another. However the 'burden', or obligations, under a contract cannot be transferred.

Assignment in construction contracts

As noted above only the benefits of a contract can be assigned - not the burden. In the context of a building contract:

the employer may assign its right to have the works constructed, and its right to sue the contractor in the event that the works are defective – but not its obligation to pay for the works;
the contractor may assign its right to payment of the contract sum - but not its obligation to construct the works in accordance with the building contract or its obligation to meet any valid claims, for example for defects.

After assignment, the assignee is entitled to the benefit of the contract and to bring proceedings against the other contracting party to enforce its rights. The assignor still owes obligations to the other contracting party, and will remain liable to perform any part of the contract that still has to be fulfilled since the burden cannot be assigned. In practice, what usually happens is that the assignee takes over the performance of the contract with effect from assignment and the assignor will generally ask to be indemnified against any breach or failure to perform by the assignee. The assignor will remain liable for any past liabilities incurred before the assignment.

In construction contracts, the issue of assignment often arises in looking at whether collateral warranties granted to parties outside of the main construction contract can be assigned.

Funders may require the developer to assign contractual rights against the contractor and the design team as security to the funder, as well as the benefit of performance bonds and parent company guarantees. The developer may assign such rights to the purchaser either during or after completion of the construction phase.

Contractual assignment provisions

Many contracts exclude or qualify the right to assignment, and the courts have confirmed that a clause which provides that a party to a contract may not assign the benefit of that contract without the consent of the other party is legally effective and will extend to all rights and benefits arising under the contract, including the right to any remedies. Other common qualifications on the right to assign include:

a restriction on assignment without the consent of the other party, whether or not such consent is not to be unreasonably withheld or delayed;
only one of the parties may assign;
only certain rights may be assigned – for example, warranties and indemnities may be excluded;
a limit on the number of assignments - as is almost always the case in respect of collateral warranties;
a right to assign only to a named assignee or class of assignee.

Note that in some agreements where there is a prohibition on assignment, it is sometimes possible to find the reservation of specific rights to create a trust or establish security over the subject matter of the agreement instead.

Legal and equitable assignment

The Law of Property Act creates the ability to legally assign a debt or any other chose in action where the debtor, trustee or other relevant person is notified in writing. If the assignment complied with the formalities in the Act it is a legal assignment, otherwise it will be an equitable assignment.

Some transfers can only take effect as an equitable assignment, for example:

an oral assignment;
an assignment by way of charge;
an assignment of only part of the chosen in action;
an assignment of which notice has not been given to the debtor;
an agreement to assign.

If the assignment is equitable rather than legal, the assignor cannot enforce the assigned property in its own name and to do so must join the assignee in any action. This is designed to protect the debtor from later proceedings brought by the assignor or another assignee from enforcing the action without notice of the earlier assignment.

Security assignments

Using assignment as a way of taking security requires special care, as follows:

if the assignment is by way of charge, the assignor retains the right to sue for any loss it suffers caused by a breach of the other contract party;
if there is an outright assignment coupled with an entitlement to a re-assignment back once the secured obligation has been performed, it is an assignment by way of legal mortgage.

Please see our separate Out-Law guide for more information on types of security.

Restrictions on assignment

There are restrictions on the assignment of certain types of interest on public policy grounds, as follows:

certain personal contracts – for example, a contract for the employment of a personal servant or for the benefit of a motor insurance policy cannot be assigned;
a bare cause of action or 'right to sue' where the assignee has no commercial interest in the subject matter of the underlying transaction cannot be assigned;
certain rights conferred by statute – for example, a liquidator's powers to bring wrongful trading proceedings against a director – cannot be assigned;
an assignment of a contract may not necessarily transfer the benefit of an arbitration agreement contained in the contract;
the assignment of certain rights is regulated – for example, the assignment of company shares or copyright.

If you want to transfer the burden of a contract as well as the benefits under it, you have to novate. Like assignment, novation transfers the benefits under a contract but unlike assignment, novation transfers the burden under a contract as well.

In a novation the original contract is extinguished and is replaced by a new one in which a third party takes up rights and obligations which duplicate those of one of the original parties to the contract. Novation does not cancel past rights and obligations under the original contract, although the parties can agree to novate these as well.

Novation is only possible with the consent of the original contracting parties as well as the new party. Consideration (the 'price' paid, whether financial or otherwise, by the new party in return for the contract being novated to it) must be provided for this new contract unless the novation is documented in a deed signed by all three parties.

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REAL ESTATE LAW

What is a deed of trust with assignment of rents.

By Rebecca K. McDowell, J.D.

February 24, 2020

Reviewed by Michelle Seidel, B.Sc., LL.B., MBA

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What Is a Corporate Assignment of Deed of Trust?

A deed of trust is a written instrument granting a lien on real property. While slightly different from a mortgage, they are functionally nearly the same. Some states use deeds of trust instead of mortgages while others allow both. Either way, a deed of trust used to secure a commercial loan may also include an assignment of rents , which gives the lender the right to collect rental income from the property in the event of default.

What Is a Deed of Trust?

A deed of trust is a document that a borrower may execute in favor of a lender to give the lender a lien on a parcel of real estate. Like a mortgage, a deed of trust secures the loan by allowing the lender to foreclose on the real estate if the loan isn't paid (although in some states that use deeds of trust, a foreclosure isn't necessary).

Read More: How to Research a Deed of Trust

Deed of Trust vs. Mortgage

A deed of trust is very similar to a mortgage in that it pledges property to secure a loan. A mortgage, however, is simpler; the property owner executes a mortgage document in favor of the lender, and the lender records the mortgage and has a lien , but the property owner still holds title to the property.

A deed of trust, on the other hand, grants an actual ownership interest in the property to a trustee, who holds the property in trust for the lender until the obligation is paid.

What Is an Assignment of Rents?

An assignment of rents is extra security granted to a lender that provides a commercial loan. Commercial loans are loans that are not made for family or household use but for business purposes.

When a borrower grants a mortgage or deed of trust on real estate and the real estate has tenants who pay rent, the lender can demand an assignment of rents in addition to the mortgage or deed of trust.

The assignment of rents means that if the borrower defaults on the loan, the lender can step in and collect the rents directly from the tenants.

Deed of Trust With Assignment of Rents

A deed of trust may contain an assignment of rents clause for that same property. In addition to a clause in the deed of trust, the lender may also require the borrower to execute a separate document called an "Assignment of Rents" that is recorded with the register of deeds.

Whether the assignment is written in the deed of trust only or is also contained in a separate document, it is binding on the borrower as long as its language is clear and sufficient to create an assignment under state law.

Exercising an Assignment of Rents

When a lender decides to collect the rents on the borrower's property, the lender is said to be exercising the assignment of rents. The lender cannot exercise the assignment unless the borrower has defaulted on the loan. Once that happens, the lender can send a written demand to the tenant or tenants, requiring that the rents be paid directly to the lender.

Absolute Assignments of Rents

An assignment of rents most likely will contain language that the assignment is an absolute assignment . In most states, an absolute assignment gives the lender an immediate interest in the rents. This means that the lender actually owns the rents and is simply allowing the borrower to collect them on license until an event of default. Once a default occurs, the lender can intercept the rents without taking any court action; a letter to the tenants is all that's needed.

Every state's laws are different; the law of the state where the property is located will dictate how a lender can exercise an assignment of rents.

Read More: What Is the Difference Between a Deed and a Deed of Trust?

Companies Incorporated: Mortgage States and Deed of Trust States
American Bar Association: Commercial Real Estate FAQs
Schulte Roth & Zabel: Sixth Circuit Upholds Assignment of Rents to Secured Lender
Findlaw: California Civil Code - CIV § 2938
Legal Beagle: What Is the Difference Between a Deed and a Deed of Trust?
Legal Beagle: How to Research a Deed of Trust
Legal Beagle: Documents Needed to Refinance a Mortgage
Legal Beagle: How to File a Property Lien

Rebecca K. McDowell is a creditors' rights attorney with a special focus on bankruptcy and insolvency. She has a B.A. in English from Albion College and a J.D. from Wayne State University Law School. She has written legal articles for Nolo and the Bankruptcy Site.

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Assignments: why you need to serve a notice of assignment

It's the day of completion; security is taken, assignments are completed and funds move. Everyone breathes a sigh of relief. At this point, no-one wants to create unnecessary paperwork - not even the lawyers! Notices of assignment are, in some circumstances, optional. However, in other transactions they could be crucial to a lender's enforcement strategy. In the article below, we have given you the facts you need to consider when deciding whether or not you need to serve notice of assignment.

What issues are there with serving notice of assignment?

Assignments are useful tools for adding flexibility to banking transactions. They enable the transfer of one party's rights under a contract to a new party (for example, the right to receive an income stream or a debt) and allow security to be taken over intangible assets which might be unsuitable targets for a fixed charge. A lender's security net will often include assignments over contracts (such as insurance or material contracts), intellectual property rights, investments or receivables.

An assignment can be a legal assignment or an equitable assignment. If a legal assignment is required, the assignment must comply with a set of formalities set out in s136 of the Law of Property Act 1925, which include the requirement to give notice to the contract counterparty.

The main difference between legal and equitable assignments (other than the formalities required to create them) is that with a legal assignment, the assignee can usually bring an action against the contract counterparty in its own name following assignment. However, with an equitable assignment, the assignee will usually be required to join in proceedings with the assignor (unless the assignee has been granted specific powers to circumvent that). That may be problematic if the assignor is no longer available or interested in participating.

Why should we serve a notice of assignment?

The legal status of the assignment may affect the credit scoring that can be given to a particular class of assets. It may also affect a lender's ability to effect part of its exit strategy if that strategy requires the lender to be able to deal directly with the contract counterparty.

The case of General Nutrition Investment Company (GNIC) v Holland and Barrett International Ltd and another (H&B) provides an example of an equitable assignee being unable to deal directly with a contract counterparty as a result of a failure to provide a notice of assignment.

The case concerned the assignment of a trade mark licence to GNIC . The other party to the licence agreement was H&B. H&B had not received notice of the assignment. GNIC tried to terminate the licence agreement for breach by serving a notice of termination. H&B disputed the termination. By this point in time the original licensor had been dissolved and so was unable to assist.

At a hearing of preliminary issues, the High Court held that the notices of termination served by GNIC , as an equitable assignee, were invalid, because no notice of the assignment had been given to the licensee. Although only a High Court decision, this follows a Court of Appeal decision in the Warner Bros Records Inc v Rollgreen Ltd case, which was decided in the context of the attempt to exercise an option.

In both cases, an equitable assignee attempted to exercise a contractual right that would change the contractual relationship between the parties (i.e. by terminating the contractual relationship or exercising an option to extend the term of a licence). The judge in GNIC felt that "in each case, the counterparty (the recipient of the relevant notice) is entitled to see that the potential change in his contractual position is brought about by a person who is entitled, and whom he can see to be entitled, to bring about that change".

In a security context, this could hamper the ability of a lender to maximise the value of the secured assets but yet is a constraint that, in most transactions, could be easily avoided.

Why not serve notice?

Sometimes it's just not necessary or desirable. For example:

If security is being taken over a large number of low value receivables or contracts, the time and cost involved in giving notice may be disproportionate to the additional value gained by obtaining a legal rather than an equitable assignment.
If enforcement action were required, the equitable assignee typically has the option to join in the assignor to any proceedings (if it could not be waived by the court) and provision could be made in the assignment deed for the assignor to assist in such situations. Powers of attorney are also typically granted so that a lender can bring an action in the assignor's name.
Enforcement is often not considered to be a significant issue given that the vast majority of assignees will never need to bring claims against the contract counterparty.

Care should however, be taken in all circumstances where the underlying contract contains a ban on assignment, as the contract counterparty would not have to recognise an assignment that is made in contravention of that ban. Furthermore, that contravention in itself may trigger termination and/or other rights in the assigned contract, that could affect the value of any underlying security.

What about acknowledgements of notices?

A simple acknowledgement of service of notice is simply evidence of the notice having been received. However, these documents often contain commitments or assurances by the contract counterparty which increase their value to the assignee.

Best practice for serving notice of assignment

Each transaction is different and the weighting given to each element of the security package will depend upon the nature of the debt and the borrower's business. The service of a notice of assignment may be a necessity or an optional extra. In each case, the question of whether to serve notice is best considered with your advisers at the start of a transaction to allow time for the lender's priorities to be highlighted to the borrowers and captured within the documents.

For further advice on serving notice of assignment please contact Kirsty Barnes or Catherine Phillips from our Banking & Finance team.

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Assignment: Definition in Finance, How It Works, and Examples

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

What Is an Assignment?

Assignment most often refers to one of two definitions in the financial world:

The transfer of an individual's rights or property to another person or business. This concept exists in a variety of business transactions and is often spelled out contractually.
In trading, assignment occurs when an option contract is exercised. The owner of the contract exercises the contract and assigns the option writer to an obligation to complete the requirements of the contract.

Key Takeaways

Assignment is a transfer of rights or property from one party to another.
Options assignments occur when option buyers exercise their rights to a position in a security.
Other examples of assignments can be found in wages, mortgages, and leases.

Uses For Assignments

Assignment refers to the transfer of some or all property rights and obligations associated with an asset, property, contract, or other asset of value. to another entity through a written agreement.

Assignment rights happen every day in many different situations. A payee, like a utility or a merchant, assigns the right to collect payment from a written check to a bank. A merchant can assign the funds from a line of credit to a manufacturing third party that makes a product that the merchant will eventually sell. A trademark owner can transfer, sell, or give another person interest in the trademark or logo. A homeowner who sells their house assigns the deed to the new buyer.

To be effective, an assignment must involve parties with legal capacity, consideration, consent, and legality of the object.

A wage assignment is a forced payment of an obligation by automatic withholding from an employee’s pay. Courts issue wage assignments for people late with child or spousal support, taxes, loans, or other obligations. Money is automatically subtracted from a worker's paycheck without consent if they have a history of nonpayment. For example, a person delinquent on $100 monthly loan payments has a wage assignment deducting the money from their paycheck and sent to the lender. Wage assignments are helpful in paying back long-term debts.

Another instance can be found in a mortgage assignment. This is where a mortgage deed gives a lender interest in a mortgaged property in return for payments received. Lenders often sell mortgages to third parties, such as other lenders. A mortgage assignment document clarifies the assignment of contract and instructs the borrower in making future mortgage payments, and potentially modifies the mortgage terms.

A final example involves a lease assignment. This benefits a relocating tenant wanting to end a lease early or a landlord looking for rent payments to pay creditors. Once the new tenant signs the lease, taking over responsibility for rent payments and other obligations, the previous tenant is released from those responsibilities. In a separate lease assignment, a landlord agrees to pay a creditor through an assignment of rent due under rental property leases. The agreement is used to pay a mortgage lender if the landlord defaults on the loan or files for bankruptcy . Any rental income would then be paid directly to the lender.

Options Assignment

Options can be assigned when a buyer decides to exercise their right to buy (or sell) stock at a particular strike price . The corresponding seller of the option is not determined when a buyer opens an option trade, but only at the time that an option holder decides to exercise their right to buy stock. So an option seller with open positions is matched with the exercising buyer via automated lottery. The randomly selected seller is then assigned to fulfill the buyer's rights. This is known as an option assignment.

Once assigned, the writer (seller) of the option will have the obligation to sell (if a call option ) or buy (if a put option ) the designated number of shares of stock at the agreed-upon price (the strike price). For instance, if the writer sold calls they would be obligated to sell the stock, and the process is often referred to as having the stock called away . For puts, the buyer of the option sells stock (puts stock shares) to the writer in the form of a short-sold position.

Suppose a trader owns 100 call options on company ABC's stock with a strike price of $10 per share. The stock is now trading at $30 and ABC is due to pay a dividend shortly. As a result, the trader exercises the options early and receives 10,000 shares of ABC paid at $10. At the same time, the other side of the long call (the short call) is assigned the contract and must deliver the shares to the long.

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A General Assignment of Assets to one’s Living Trust can help avoid a Probate.

Re-titling assets, like stock and bonds, from one’s name into one’s living trust is necessary to avoiding an unnecessary probate of such assets if held outside of the trust. Sometimes people fail to transfer some or all of their intended trust assets into their trust. A general assignment of assets to one’s living trust provides an important safeguard. Let’s examine what a general assignment is and how it helps to fund one’s trust and avoid a probate with the help of a Lake County probate attorney:

A general assignment of assets transfers ownership on a wide variety of assets as the name implies. An all encompassing general assignment is regularly used by estate planners to transfer all types of financial assets (excluding tax deferred retirement accounts) and personal property (such as the contents of one’s home) into the trust. It is a half-step towards actually re-titling the securities and the financial accounts into the name of the trustee. Nevertheless, the settlor should still proceed to contact the banks, brokerages, and stock transfer agents (as relevant) to formally transfer legal title into the name of the trustee. But, in the event that the formal legal title is not transferred prior to death, the general assignment can be used to obtain a court order to transfer legal title into the trust.

In Kucker v. Kucker , (2011), 192 CA 4 th , 90, the Court of Appeal reversed a trial court decision wherein the trial court disallowed a petition to transfer stocks into a trust based on a general assignment of all assets by the settlor to the trustee. The Court of Appeal agreed with the petitioner that a general assignment of all or substantially all of the settlor’s assets into one’s trust does cause the stocks to be owned by the trustee. An otherwise unnecessary probate was thus avoided thanks to a general assignment by the settlor.

Similarly, a declaration of trust by a settlor to hold certain assets listed on a schedule of pledged assets attached to a trust document can likewise be used to accomplish the same result. Most attorneys use a schedule of initial trust assets and a general assignment to reinforce one-another. Moreover, unlike the general assignment, the schedule of trust assets will also include the real estate – together with a full legal description — for the same reason. That is, if a trust transfer deed is not properly executed prior to the settlor’s death, then the schedule of initial trust assets to a declaration of trust can be used to petition the court to transfer legal title into the trust without a probate.

While the general assignment and the declaration of trust are important safeguards against the failure to formally transfer title to trust assets while the settlor is still alive and competent, such safeguards are just safeguards. The better course of action is to see that one’s real estate, stocks and bonds, and financial accounts (and other trust assets) are properly titled in the name of the trustee of one’s trust. After all, filing a court petition entails further expenses and delay in the administration of the trust that can be avoided.

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Article III, Section 2, Clause 1:

The judicial Power shall extend to all Cases, in Law and Equity, arising under this Constitution, the Laws of the United States, and Treaties made, or which shall be made, under their Authority;—to all Cases affecting Ambassadors, other public Ministers and Consuls;—to all Cases of admiralty and maritime Jurisdiction; to Controversies to which the United States shall be a Party;—to Controversies between two or more States; between a State and Citizens of another State, between Citizens of different States,—between Citizens of the same State claiming Lands under Grants of different States, and between a State, or the Citizens thereof, and foreign States, Citizens or Subjects.

An assignment of a legal claim occurs when one party (the “assignor” ) transfers its rights in a cause of action to another party (the “assignee” ). 1 Footnote Black’s Law Dictionary 136 (9th ed. 2009) (defining “assignment” as “the transfer of rights or property” ). The Supreme Court has held that a private litigant may have standing to sue to redress an injury to another party when the injured party has assigned at least a portion of its claim for damages from that injury to the litigant. The Supreme Court in the 2000 case Vermont Agency of Natural Resources v. United States ex rel. Stevens held that private individuals may have Article III standing to bring a qui tam civil action in federal court under the federal False Claims Act (FCA) on behalf of the federal government if authorized to do so. 2 Footnote 529 U.S. 765, 768, 778 (2000) . The FCA imposes civil liability upon “any person” who, among other things, knowingly presents to the federal government a false or fraudulent claim for payment. 3 Footnote 31 U.S.C. § 3729(a) . To encourage citizens to enforce the Act, in certain circumstances, a private individual, known as a “relator,” may bring a civil action for violations of the Act. Such plaintiffs sue under the name of the United States and may receive a share of any recovered proceeds from the action. 4 Footnote Id. § 3730(d)(1)–(2) . Under the FCA, the relator is not merely the agent of the United States but an individual with an interest in the lawsuit itself. 5 Footnote Vt. Agency of Nat. Res. , 529 U.S. at 772 ( “For the portion of the recovery retained by the relator . . . some explanation of standing other than agency for the Government must be identified.” ) (citing 31 U.S.C. § 3730 ).

Ordinarily, if the relator’s financial interest in the outcome of the case were merely a byproduct of the suit itself, there would be no injury sufficient for standing. 6 Footnote Id. at 772–73 ( “An interest unrelated to injury in fact is insufficient to give a plaintiff standing. . . . A qui tam relator has suffered no [invasion of a legally protected right]—indeed, the ‘right’ he seeks to vindicate does not even fully materialize until the litigation is completed and the relator prevails.” ) (citations omitted). The Supreme Court has held that a litigant’s interest in recovering attorneys’ fees or the costs of bringing suit by itself normally does not confer standing to sue. E.g. Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 107 (1998) ( “The litigation must give the plaintiff some other benefit besides reimbursement of costs that are a byproduct of the litigation itself.” ); Diamond v. Charles, 476 U.S. 54, 70–71 (1986) ( “[T]he mere fact that continued adjudication would provide a remedy for an injury that is only a byproduct of the suit itself does not mean that the injury is cognizable under Art. III.” ). In Stevens , however, the Supreme Court recognized a distinction that confers standing upon qui tam plaintiffs in FCA cases. Justice Antonin Scalia, writing for the Court, determined that assignments of claims are distinguishable from cases in which a litigant has a mere financial interest in the outcome of the suit because the assignee-plaintiff actually owns a stake in the dispute as a legal matter. 7 Footnote Vt. Agency of Nat. Res. , 529 U.S. at 773 . Justice Scalia drew support for this distinction from the long-standing historical practice of the government assigning a portion of its damages claim to a private party and allowing that party to assert the injury suffered by the federal government as a representative of the United States. 8 Footnote Id. at 774, 778 The Court noted the “long tradition of qui tam actions in England and the American colonies,” 9 Footnote Id. concluding that “Article III’s restriction of the judicial power to ‘Cases’ and ‘Controversies’ is properly understood to mean ‘cases and controversies of the sort traditionally amenable to, and resolved by, the judicial process.’” 10 Footnote Id. Although the Court held that the relator had standing to sue under the qui tam provision, it ultimately determined that the plaintiff could not maintain the action against a state agency for allegedly submitting false grant claims to the EPA because states were not “persons” subject to liability under the False Claims Act. Id. at 787 .

Eight years after deciding Stevens , the Supreme Court again found that an assignee of a claim had standing, even when the assignee had promised to remit all of the money it recovered in the proceedings to the assignor. 11 Footnote Sprint Commc’ns Co. v. APCC Servs., Inc. , 554 U.S. 269 , 271 (2008) . In Sprint Communications Co. v. APCC Services, Inc. , payphone operators had assigned their legal claims for money owed to them by long-distance communications carriers to third-party collection agencies. 12 Footnote Id. at 271–72 . The agencies were authorized to bring suit on behalf of the payphone operators and promised to pay all of the proceeds of the litigation to the payphone operators for a fee. 13 Footnote Id. at 272 . The Court held that these collection agencies had standing to pursue the operators’ claims because of the long history of courts’ acceptance of such claims. 14 Footnote Id. at 273–75 . The Court noted that “federal courts routinely entertain suits which will result in relief for parties that are not themselves directly bringing suit. Trustees bring suits to benefit their trusts; guardians ad litem bring suits to benefit their wards; receivers bring suit to benefit their receiverships; assignees in bankruptcy bring suit to benefit bankrupt estates; executors bring suit to benefit testator estates; and so forth.” Id. at 287–88 . Assignment was sufficient to transfer the injury to the collections agencies, and the injury to the operators that had been transferred to the collection agencies would be redressed by a favorable judicial decision, even if the agencies would subsequently pay all of the proceeds to the operators. 15 Footnote Id. at 286–87 ( “[I]f the [collection agencies] prevail in this litigation, the long-distance carriers would write a check to [them] for the amount of dial-around compensation owed. What does it matter what the [agencies] do with the money afterward?” ).

The Stevens and Sprint cases could have broader implications for Article III standing doctrine, as they suggest a way in which the constitutional limitations on standing may be bypassed through the assignment of rights to a third party. 16 Footnote See also ArtIII.S2.C1.6.4.3 Particularized Injury. For instance, if Congress enacts a federal statute recognizing an injury to the federal government that otherwise satisfies Article III’s requirements, it may assign a portion of its claim to a private party, thereby potentially giving that plaintiff standing to sue as a representative of the United States. 17 Footnote See Vt. Agency of Nat. Res. , 529 U.S. at 773 . This is essentially the operation of the False Claims Act. 18 Footnote 31 U.S.C. §§ 3729–3733 . However, it is unclear whether every such statute would necessarily resolve all Article III standing concerns. In Stevens and Sprint , the Court gave significant weight to the lengthy history of courts recognizing the types of assignments at issue when determining that the litigants in those cases had standing to sue. 19 Footnote See id. at 774, 778 ; Sprint Commc’ns Co. , 554 U.S. at 273–75 . Moreover, there may be a number of concerns about the constitutionality and practicality of using assignments to delegate core government functions (e.g., criminal prosecutions) to private parties when courts have not historically recognized claims based on such assignments, including concerns about interference with the Executive Branch’s Article II powers and prosecutorial discretion. 20 Footnote See Heather Elliott , Congress’s Inability to Solve Standing Problems , 91 B.U. L. Rev. 159 , 195–204 (2011) (questioning whether Congress’s assignment of claims to citizen suitors in order to confer standing would be constitutional or practical).

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Chapter 14
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ASSIGNMENT OF A BOND
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What is a bond assignment?
Bond assignments is where your bail is assigned to be released to someone else at the close of the case. For example, if your bail was set at $50,000, you would have to post $5,000 to be released. You hire an attorney who agrees to take a bond assignment for the $5,000. Therefore, if your attorney gets the case dismissed, the $5,000 is then ...
How does a bond assignment work?
A bond assignment is where the court clerk, rather than returning the bond money to the defendant, will send the check directly to the attorney. Bond assignments are usually used to cover legal fees and/or legal expenses incurred by the attorney. You are confused as to how a bond works. The money ceased being yours the moment you posted it.
Debt Assignment: How They Work, Considerations and Benefits
Debt Assignment: A transfer of debt, and all the rights and obligations associated with it, from a creditor to a third party . Debt assignment may occur with both individual debts and business ...
How Does a Bond Assignment Work?
How Does a Bond Assignment Work? A surety bond is a contract between three parties. The first two parties, the client and contractor, enter into an agreement for the contractor to provide a service for the client. The third party in the contract is the bond issuing company. The surety bond issuer guarantees the job will be completed under the ...
Understanding Kentucky Bond and Pretrial Release
The way bond works can be different for every individual and the process can be overwhelming. There are many steps to setting and determining bond and it all begins with the Pretrial Services officer who will conduct an assessment. ... Despite what many think, the term "bond" doesn't always mean an amount of money is paid for your release ...
What are Bonds? Types of Bonds & How they Work (2024)
Municipal Bonds. Municipal bonds, or munis, are issued by states and other local governments to fund public projects and services, such as roads and schools. They generally fall into one of two categories: General obligation (GO) bonds are backed by the taxing authority of an issuing municipality.
Bond Agreement: Definition & Sample
In this Bond Agreement the following terms shall have the following meanings (certain terms relevant for Clause 18.2 and other Clauses may be defined in the relevant Clause): "Account Manager" means a Bondholder's account manager in the Securities Register. "Attachment" means any attachments to this Bond Agreement.
Bond Assignment Definition
Bond Assignment. definition. Bond Assignment means the Assignment, Subordination and Non - Disturbance Agreement by and among Landlord, the Tenant and the Bank, dated as of December 1, 1997, together with all amendments thereto and modifications thereof. Bond Beneficiary means, collectively, MIDFA, the Bank and any other Credit Facility ...
Bond Power: What It is, How It Works, Example
Bond Power: A separate legal form that authorizes the transfer of ownership of a registered bond from one party to another. The bond power is essentially a substitute for the assignment on the ...
Assignments: The Basic Law
Assignments: The Basic Law. The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States. As with many terms commonly used, people are familiar with the ...
How Courts Work
Steps in a Trial. Bail. Bail is the amount of money defendants must post to be released from custody until their trial. Bail is not a fine. It is not supposed to be used as punishment. The purpose of bail is simply to ensure that defendants will appear for trial and all pretrial hearings for which they must be present.
Subordination Agreement: Definition, Purposes, Examples
Subordination agreement is a legal agreement which establishes one debt as ranking behind another debt in the priority for collecting repayment from a debtor. The priority of debts is extremely ...
Assignment Clause: Meaning & Samples (2022)
Assignment Clause Examples. Examples of assignment clauses include: Example 1. A business closing or a change of control occurs. Example 2. New services providers taking over existing customer contracts. Example 3. Unique real estate obligations transferring to a new property owner as a condition of sale. Example 4.
Assignment of Bond Claim Rights
The general American rule is that all contractual rights are assign-able provided none of the following conditions are met: 1) the contract has clear language explicitly prohibiting assignment; 2) the assignment would substantially and materially change the obligor's duty and/or materially effect an insurer's burden or risk; 3) the assignment would materially reduce the contract's value ...
Understanding Jail Bonds: How They Work and What You Need to Know
How does a bail bond work in jail? A bail bond works by providing a financial guarantee to the court that the defendant will appear for their trial. When a bail bond is issued, the bondsman assumes the responsibility of ensuring the defendant's presence in court. If the defendant fails to appear, the bondsman may hire a bounty hunter to ...
Bond Assignment Agreement Definition
Bond Assignment Agreement. definition. Bond Assignment Agreement means that certain Assignment and Transfer of Deeds of Trust and Security Agreement dated as of June 18, 2002, from the Bond Issuer to the Bond Trustee. Bond Assignment Agreement means the Bond Assignment Agreement, in a form to be agreed by the Parties.
Assignment
Assignment. The transfer of a right from one party to another. For example, a party to a contract (the assignor) may, as a general rule and subject to the express terms of a contract, assign its rights under the contract to a third party (the assignee) without the consent of the party against whom those rights are held. Obligations cannot be ...
Assignment and novation
Like assignment, novation transfers the benefits under a contract but unlike assignment, novation transfers the burden under a contract as well. In a novation the original contract is extinguished and is replaced by a new one in which a third party takes up rights and obligations which duplicate those of one of the original parties to the ...
What Is a Deed of Trust With Assignment of Rents?
An assignment of rents most likely will contain language that the assignment is an absolute assignment . In most states, an absolute assignment gives the lender an immediate interest in the rents. This means that the lender actually owns the rents and is simply allowing the borrower to collect them on license until an event of default.
Assignments: why you need to serve a notice of assignment
An assignment can be a legal assignment or an equitable assignment. If a legal assignment is required, the assignment must comply with a set of formalities set out in s136 of the Law of Property Act 1925, which include the requirement to give notice to the contract counterparty.
Assignment: Definition in Finance, How It Works, and Examples
Assignment: An assignment is the transfer of an individual's rights or property to another person or business. For example, when an option contract is assigned, an option writer has an obligation ...
A General Assignment of Assets to Living Trust can help avoid Probate
The Court of Appeal agreed with the. petitioner that a general assignment of all or substantially all of the. settlor's assets into one's trust does cause the stocks to be owned by the. trustee. An otherwise unnecessary. probate was thus avoided thanks to a general assignment by the settlor.
Assignees of a Claim
An assignment of a legal claim occurs when one party (the "assignor" ) transfers its rights in a cause of action to another party (the "assignee" ). 1. The Supreme Court has held that a private litigant may have standing to sue to redress an injury to another party when the injured party has assigned at least a portion of its claim for ...
What does bond arraignment mean and what will happen during my first
Bond arraignment is when you go and (a) say not guilty, (b) tell the court whoi your attorney is going to be, and (c) argue over conditions of release (including bond amounts). There is a chance that your bond will be raised. Please call me if you need any further assistance, Chip Venie, Freedom Law Center, 505 766 9000. You need an attorney.