Is the surety company actively involved in cash collateral collection?

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The surety company is typically not involved in the direct collection of cash collateral. The role of the surety is primarily to provide the bond and guarantee the obligations of the principal (the individual or entity obtaining the bond) to the obligee (the entity requiring the bond). When a bail bond is issued, the bail bondsman may require collateral to secure the bond, which is usually handled between the bail bondsman and the client. The surety company focuses on underwriting the bond and managing risk rather than engaging in the operational aspects of collateral collection.

The understanding of this process reinforces the distinction between the responsibilities of the surety and the duties of the bail bondsman, who may handle the collection of cash collateral directly from clients as part of their services.

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