H*2383 Session 106 (1985-1986)
H*2383(Rat #0287, Act #0189 of 1985) General Bill, By House Judiciary
A Bill to amend Title 38, Code of Laws of South Carolina, 1976, relating to
insurance, by adding Chapter 63 so as to define terms relating to bail
bondsmen and runners; to provide the power and authority for the Chief
Insurance Commissioner, clerks of court, and the State Law Enforcement
Division to administer the provisions of Chapter 63; to provide for the
situations under which bail bonds are valid; to provide for the qualifications
of each surety; to provide for surrender of the defendant; to provide for a
forfeiture judgment against a principal or his surety; to provide for the
licensing of professional bondsmen or runners; to provide for expiration and
renewal of the licenses; to provide for license fees; to provide the
situations under which the Commissioner may deny, suspend, revoke, refuse to
renew any license, or require the licensee to pay a civil penalty; to provide
for notice, opportunity to be heard, an appeal when a license is refused,
suspended, or revoked, or a renewal refused; to provide for limitations on the
actions of bail bondsmen or runners; to provide for acceptance of collateral
by bail bondsmen; to provide for persons not allowed to become a surety or
agent for bonding companies or professional bondsmen or to have an interest in
firms or corporations whose principal business is acting as bondsmen; to
provide for the power of attorney given by bail bondsmen; to provide for
notification to the Commissioner and clerk of court of any county where the
bondsman is doing business of surety bondsmen appointed by each insurer; to
provide for the return of a license when bondsmen discontinue writing bail
bonds; to provide for appointment of runners by bail bondsmen; to provide for
the depositing of bail in original and new undertakings; to provide for the
registering of licenses by professional bail bondsmen and powers of
appointment by surety bondsmen; to provide for the deposit of securities by
bondsmen acting as sureties on bail bonds which are to be held in trust by the
clerk of court of the county in which the bondsman has his primary place of
business; to provide for the power of attorney authorizing the clerk of court
to sell or transfer securities deposited by professional bondsmen; to provide
for notice of deficiency of security deposits to the bondsmen by the clerk of
court; to provide for the reports regarding bail bonds to be filed by the
bondsmen; to provide for visits by the Commissioner to bail bondsmen; to
provide that bondsmen may not act as sureties on any bail bond whose sum is in
excess of one-half of the value of the deposited securities; to provide
penalties for violations; and to provide that no bail bondsman or runner is
required to be licensed until two hundred seventy days after the Governor's
approval.-amended title
02/12/85 House Introduced, read first time, placed on calendar
without reference HJ-652
02/14/85 House Debate adjourned until Wednesday, February 20,
1985 HJ-808
02/20/85 House Read second time HJ-891
02/21/85 House Read third time and sent to Senate HJ-957
02/26/85 Senate Introduced and read first time SJ-645
02/26/85 Senate Referred to Committee on Judiciary SJ-646
04/17/85 Senate Committee report: Favorable Judiciary SJ-1541
04/18/85 Senate Read second time SJ-1606
04/18/85 Senate Ordered to third reading with notice of
amendments SJ-1606
05/09/85 Senate Special order SJ-2021
06/04/85 Senate Amended SJ-2780
06/04/85 Senate Read third time SJ-2797
06/04/85 Senate Returned SJ-2797
06/04/85 House Concurred in Senate amendment and enrolled HJ-3874
06/06/85 House Recalled from Legislative Council HJ-4020
06/06/85 House Reconsider vote whereby House concurred in
amendments HJ-4046
06/06/85 House Senate amendment amended HJ-4048
06/06/85 House Returned HJ-4048
06/06/85 Senate Concurred in House amendment and enrolled SJ-2907
06/18/85 Ratified R 287
06/20/85 Signed By Governor
06/20/85 Effective date 06/20/85
06/20/85 Act No. 189
06/20/85 See Act for exceptions to effective date
07/10/85 Copies available
(A189, R287, H2383)
AN ACT TO AMEND TITLE 38, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO
INSURANCE, BY ADDING CHAPTER 63 SO AS TO DEFINE TERMS RELATING TO BAIL BONDSMEN
AND RUNNERS; TO PROVIDE THE POWER AND AUTHORITY FOR THE CHIEF INSURANCE
COMMISSIONER, CLERKS OF COURT, AND THE STATE LAW ENFORCEMENT DIVISION TO
ADMINISTER THE PROVISIONS OF CHAPTER 63; TO PROVIDE FOR THE SITUATIONS UNDER
WHICH BAIL BONDS ARE VALID; TO PROVIDE FOR THE QUALIFICATIONS OF EACH SURETY; TO
PROVIDE FOR SURRENDER OF THE DEFENDANT; TO PROVIDE FOR A FORFEITURE JUDGMENT
AGAINST A PRINCIPAL OR HIS SURETY; TO PROVIDE FOR THE LICENSING OF PROFESSIONAL
BONDSMEN OR RUNNERS; TO PROVIDE FOR EXPIRATION AND RENEWAL OF THE LICENSES; TO
PROVIDE FOR LICENSE FEES; TO PROVIDE THE SITUATIONS UNDER WHICH THE COMMISSIONER
MAY DENY, SUSPEND, REVOKE, REFUSE TO RENEW ANY LICENSE, OR REQUIRE THE LICENSEE
TO PAY A CIVIL PENALTY; TO PROVIDE FOR NOTICE, OPPORTUNITY TO BE HEARD, AND
APPEAL WHEN A LICENSE IS REFUSED, SUSPENDED, OR REVOKED, OR A RENEWAL REFUSED;
TO PROVIDE FOR LIMITATIONS ON THE ACTIONS OF BAIL BONDSMEN OR RUNNERS; TO PROVIDE
FOR ACCEPTANCE OF COLLATERAL BY BAIL BONDSMEN; TO PROVIDE FOR PERSONS NOT ALLOWED
TO BECOME A SURETY OR AGENT FOR BONDING COMPANIES OR PROFESSIONAL BONDSMEN OR TO
HAVE AN INTEREST IN FIRMS OR CORPORATIONS WHOSE PRINCIPAL BUSINESS IS ACTING AS
BONDSMEN; TO PROVIDE FOR THE POWER OF ATTORNEY GIVEN BY BAIL BONDSMEN; TO PROVIDE
FOR NOTIFICATION TO THE COMMISSIONER AND CLERK OF COURT OF ANY COUNTY WHERE THE
BONDSMAN IS DOING BUSINESS OF SURETY BONDSMEN APPOINTED BY EACH INSURER; TO
PROVIDE FOR THE RETURN OF A LICENSE WHEN BONDSMEN DISCONTINUE WRITING BAIL BONDS;
TO PROVIDE FOR APPOINTMENT OF RUNNERS BY BAIL BONDSMEN; TO PROVIDE FOR THE
DEPOSITING OF BAIL IN ORIGINAL AND NEW UNDERTAKINGS; TO PROVIDE FOR THE
REGISTERING OF LICENSES BY PROFESSIONAL BAIL BONDSMEN AND POWERS OF APPOINTMENT
BY SURETY BONDSMEN; TO PROVIDE FOR THE DEPOSIT OF SECURITIES BY BONDSMEN ACTING
AS SURETIES ON BAIL BONDS WHICH ARE TO BE HELD IN TRUST BY THE CLERK OF COURT OF
THE COUNTY IN WHICH THE BONDSMAN HAS HIS PRIMARY PLACE OF BUSINESS; TO PROVIDE
FOR THE POWER OF ATTORNEY AUTHORIZING THE CLERK OF COURT TO SELL OR TRANSFER
SECURITIES DEPOSITED BY PROFESSIONAL BONDSMEN; TO PROVIDE FOR NOTICE OF
DEFICIENCY OF SECURITY DEPOSITS TO THE BONDSMEN BY THE CLERK OF COURT; TO PROVIDE
FOR THE REPORTS REGARDING BAIL BONDS TO BE FILED BY THE BONDSMEN; TO PROVIDE FOR
VISITS BY THE COMMISSIONER TO BAIL BONDSMEN; TO PROVIDE THAT BONDSMEN MAY NOT ACT
AS SURETIES ON ANY BAIL BOND WHOSE SUM IS IN EXCESS OF ONE-HALF OF THE VALUE OF
THE DEPOSITED SECURITIES; TO PROVIDE PENALTIES FOR VIOLATIONS; AND TO PROVIDE
THAT NO BAIL BONDSMAN OR RUNNER IS REQUIRED TO BE LICENSED UNTIL TWO HUNDRED
SEVENTY DAYS AFTER THE GOVERNOR'S APPROVAL.
Be it enacted by the General Assembly of the State of South Carolina:
Bail bondsmen and runners
SECTION 1. Title 38 of the 1976 Code is amended by adding:
"CHAPTER 63
BAIL BONDSMEN AND RUNNERS
Section 38-63-10. When used in this chapter:
(a) 'Accommodation bondsman' means a person who has reached the age of
eighteen years, is a resident of this State, who, aside from love and affection
and release of the person concerned, receives no consideration for action as
surety, and who endorses the bail bond after providing satisfactory evidence of
ownership, value, and marketability of real or personal property to the extent
necessary to reasonably satisfy the official taking bond that the real or
personal property will in all respects be sufficient to assure that the full
principal sum of the bond will be realized in the event of breach of the
conditions of the bond. 'Consideration' as used in this item does not include
the legal rights of a surety against a principal by reason of breach of the
conditions of a bail bond nor does it include collateral furnished to and
securing the surety so long as the value of the surety's rights in the collateral
does not exceed the principal's liability to the surety by reason of a breach in
the conditions of the bail bond.
(b) 'Bail bond' means an undertaking by the principal to appear in court as
required upon penalty of forfeiting bail to the State in a stated amount and may
include an unsecured appearance bond, a premium-secured appearance bond, an
appearance bond secured by a cash deposit of the full amount of the bond, an
appearance bond secured by a mortgage, and an appearance bond secured by at least
one surety.
(c) 'Bail bondsman' means a surety bondsman, professional bondsman, or an
accommodation bondsman as defined in this chapter.
(d) 'Clerk of Court' unless otherwise specified, means the clerk of the
circuit court of the county in the state where the bondsman is currently writing
or obligated on the majority of those bail bonds which he has written or on which
he is obligated.
(e) 'Commissioner' means the Chief Insurance Commissioner.
(f) 'Insurer' means any domestic, foreign, or alien surety company which has
qualified generally to transact surety business and specifically to transact bail
bond business in this State.
(g) 'Obligor' means a principal or a surety on a bail bond.
(h) 'Principal' means a defendant or witness obligated to appear in court as
required upon penalty of forfeiting bail under a bail bond.
(i) 'Professional bondsman' means any person who is approved and licensed
under the provisions of this chapter and who pledges cash or approved securities
with the clerk of court as security for bail bonds written in connection with a
judicial proceeding and receives or is promised money or other thing of value for
the pledge.
(j) 'Runner' means a person employed by a bail bondsman for the purpose of
assisting the bail bondsman in presenting the defendant in court when required,
to assist in the apprehension and surrender of the defendant to the court,
keeping the defendant under necessary surveillance, or to execute bonds on behalf
of the licensed bondsman when the power of attorney has been recorded. 'Runner'
does not include an attorney or a law enforcement officer assisting a bondsman.
(k) 'Surety' means one who, with the principal, is liable for the amount of
the bail bond upon forfeiture of bail.
(l) 'Surety bondsman' means any person who is approved by and licensed under
the provisions of this chapter as an insurance agent, appointed by an insurer by
power of attorney to execute or countersign bail bonds for the insurer in
connection with judicial proceedings, and receives or is promised money or other
things of value for the execution or countersignature.
Section 38-63-20. The commissioner, clerks of court, and the State Law
Enforcement Division shall have full power and authority to administer those
provisions of this chapter for which they are charged with implementing. The
commissioner shall promulgate regulations to enforce the purposes and provisions
of this chapter. The commissioner may hire employees, examiners, investigators,
and other assistants as they consider necessary, and shall prescribe their
duties.
Section 38-63-30. No undertaking is invalid, nor may any person be discharged
from his undertaking, a forfeiture be stayed, the judgment on the undertaking be
stayed, set aside, or reversed, nor the collection of the judgment be barred or
defeated by reason of any defect, omission, failure to note or record the default
of any principal or surety, because the undertaking was entered into on a Sunday
or other holiday or because of any other irregularity, if it appears from the
tenor of the undertaking that the official before whom it was entered into was
legally authorized to take it and if the amount of bail was stated.
The liability of a person on an undertaking is not affected by reason of the
lack of any qualifications, sufficiency, or competency provided in any other law
in this State, by reason of any other agreement whether or not the agreement is
expressed in the undertaking, or because the defendant has not joined in the
undertaking.
Section 38-63-40. Each surety for the release of a person on bail must be
qualified as:
(a) an insurer and represented by a surety bondsman;
(b) a professional bondsman; or
(c) an accommodation bondsman.
Section 38-63-50. The person desiring to make a surrender of the defendant shall
obtain a copy of the undertaking and deliver it together with the defendant to
the official in whose custody the defendant was at the time bail was taken or to
the official into whose custody he would have been given had he been committed.
The official shall detain the defendant in his custody and by a certificate in
writing acknowledge the surrender.
Upon the presentation of the copy of the undertakings and the certificate of
the official, the court before which the defendant has been held to answer or the
court in which the preliminary examination, warrant, indictment, information, or
appeal is pending, upon notice of three days given by the person making the
surrender to the prosecuting officer of the court having jurisdiction of the
offense, together with a copy of the undertakings and certificate, shall order
that the obligors be exonerated from liability of their undertakings. If money
or bonds have been deposited as bail, the money or bonds must be refunded.
Section 38-63-60. For the purpose of surrendering the defendant, the surety may
arrest him before the forfeiture of the undertaking, or by his written authority
endorsed on a certified copy of the undertaking, may request any judicial officer
to order the arrest of the defendant by the surety.
Section 38-63-70. At any time before execution is issued on a judgment of
forfeiture against a principal or his surety, the court may direct that the
judgment be remitted in whole or in part, upon conditions as the court may
impose, if it appears that justice requires the remission of part or all of the
judgment. In making a determination as to remission of the judgment, the court
shall consider the costs to the State or any county or municipality resulting
from the necessity to continue or terminate the principal's trial and the efforts
of law enforcement officers or agencies to locate the principal.
Section 38-63-80. No person may act in the capacity of a bail bondsman or runner
or perform any of the functions, duties, or powers prescribed for bail bondsmen
or runners under the provisions of this chapter unless that person is qualified
and, except as regards an accommodation bondsman, licensed in accordance with the
provisions of this chapter. No license may be issued to a professional bondsman
or runner except as provided in this chapter.
The applicant shall apply for a license or renewal of a license on forms
prepared and supplied by the commissioner, and the commissioner may ask the
applicant for a license under this chapter or on any renewal of a license any
questions, written or otherwise, relating to his qualifications, residence,
prospective place of business, and any other inquiries which, in the opinion of
the commissioner, are considered necessary in order to protect the public and
ascertain the qualifications of the applicant. The commissioner must request
that the State Law Enforcement Division conduct any reasonable investigation
relative to the determination of the applicant's fitness to be licensed or to
continue to be licensed.
The failure of the applicant to secure approval of the commissioner does not
preclude him from applying as many times as he desires, but no applications may
be considered by the commissioner within one year subsequent to the date upon
which the commissioner denied the last application.
Section 38-63-90. All licenses issued pursuant to the provisions of this chapter
expire annually on June thirtieth unless revoked or suspended prior to that time
by the commissioner or upon notice served upon the commissioner that the employee
of any runner has canceled the licensee's authority to chapter for the employer.
Section 38-63-100. Before a license is issued to an applicant permitting him to
act as a professional bondsman or runner, the applicant shall furnish the
commissioner a complete set of his fingerprints and a recent passport size
full-face photograph of himself. The applicant's fingerprints must be certified
by an authorized law enforcement officer.
Before being issued the license every applicant for a license as a professional
bondsman or runner shall satisfy the commissioner that he:
(a) is eighteen years of age or older;
(b) is a resident of this State;
(c) is a person of good moral character and has not been convicted of a
felony or any crime involving moral turpitude within the last ten years;
(d) has knowledge, training, or experience of sufficient duration and extent
to reasonably satisfy the commissioner that he possesses the competence necessary
to fulfill the responsibilities of a licensee.
Section 38-63-110. (a) A license fee of four hundred dollars must be paid to
the commissioner with each application for license as a professional bondsman.
The first year after enactment the commissioner shall forward four hundred
dollars to the State Treasurer to be placed in the general fund; provided that
of the four hundred dollars, the amount of two hundred dollars shall be paid over
to the commissioner to offset those costs he incurs under the provisions of this
chapter, and two hundred dollars shall be paid over to the State Law Enforcement
Division to offset those costs it may incur under the provisions of this chapter.
(b) A license fee of two hundred dollars must be paid to the commissioner with
each application for a license as a runner. The first year after enactment, the
commissioner shall forward two hundred dollars to the State Treasurer to be
placed in the general fund; provided that of the two hundred dollars, the amount
of one hundred shall be paid over to the commissioner to offset those costs he
incurs under the provisions of this chapter, and one hundred dollars shall be
paid over to the State Law Enforcement Division to offset those costs it incurs
under the provisions of this chapter.
(c) Beginning the second year after enactment, the commissioner shall forward
forty percent of all fees collected under the provisions of Section 38-63-110 (a)
and (b) to the clerk of court of the county where the principal place of business
of the bondsman or runner is located. The remaining sixty percent of collected
fees shall be forwarded to the State Treasurer to be placed in the general fund
of which one-third shall be paid to the State Law Enforcement Division and
two-thirds paid to the commissioner to offset expenses incurred under the
provisions of this chapter.
(d) In addition to the fees herein provided, a bondsman shall pay to the clerk
of court of any county where he is doing business other than the county of his
principal place of business the sum of one hundred dollars annually to be paid
directly to and retained by the clerk of court of said county.
Section 38-63-120. In addition to the other requirements of this chapter, an
applicant for a professional bondsman's license shall furnish annually a detailed
financial statement under oath and in a form as the commissioner may require.
Any statement is subject to the same examination as is prescribed by law for
domestic insurance companies.
Section 38-63-130. In addition to the other requirements of this chapter, an
applicant for a license to be a runner shall affirmatively show that:
(a) the applicant will be employed by only one bail bondsman who shall
supervise the work of the applicant and is responsible for the runner's conduct
in the bail bond business;
(b) the application is endorsed by the appointing bail bondsman who shall
obligate himself in the application to supervise the runner's activities.
Section 38-63-140. Except as provided in this chapter, an applicant for a
license to be a professional bondsman or runner is required to take a written
examination testing his ability and qualifications. The examination may be
prepared and administered by the commissioner, or the commissioner may, in his
discretion, enter into an arrangement with a competent outside testing authority
for the administration of the examinations. In the event that the commissioner
enters into an arrangement with an outside testing authority to administer
examinations, the scope, content, and subject matter of the examination
administered, as well as all registration, fee, and test procedure requirements
of the outside testing authority, at all times, are subject to the approval of
and modification by the commissioner. The failure of an applicant to pass an
examination does not preclude him from taking subsequent examinations; provided
that at least six months shall elapse between such examinations.
Section 38-63-150. A renewal license must be issued by the commissioner to a
licensee who has continually maintained his license in effect without further
examination upon the payment of a renewal fee of two hundred dollars in case of
runners and four hundred dollars in case of professional bondsmen, but the
licensees are required in all other respects to comply with the provisions of
this chapter. After the receipt of the licensee's application for renewal, the
current license continues in effect until the renewal license is issued or denied
for cause.
Section 38-63-160. (A) The commissioner may deny, suspend, revoke, or refuse
to renew any license issued under this chapter for any of the following causes:
(1) for any cause sufficient to deny, suspend, or revoke the license under
any other provisions of this chapter;
(2) violation of any laws of this State relating to bail in the course of
dealings under the license issued him by the commissioner;
(3) material misstatement, misrepresentation, or fraud in obtaining the
license;
(4) misappropriation, conversion, or unlawful withholding of monies
belonging to insurers or others and received in the conduct of business under the
license;
(5) fraudulent or dishonest practices in the conduct of business under the
license;
(6) conviction of a felony within the last ten years and regardless of
whether the conviction resulted from conduct in or related to the bail bond
business;
(7) failure to comply with or violation of the provisions of this chapter
or of any order or regulation of the commissioner;
(8) when in the judgment of the commissioner the licensee has in the
conduct of his affairs under the license demonstrated incompetency or
untrustworthiness, that he is no longer in good faith carrying on the bail bond
business, or that he is guilty of rebating, offering to rebate, or offering to
divide the premiums received for the bond;
(9) for failing to pay any judgment or decree rendered on any forfeited
undertaking in any court of competent jurisdiction;
(10) for charging or receiving as premium or compensation for the making of
any deposit or bail bond any sum in excess of that permitted by this chapter;
(11) for requiring as a condition of his executing a bail bond that the
principal agree to engage the services of a specified attorney.
(B) The commissioner, in lieu of revoking or suspending a license in
accordance with the provisions of this chapter, may, in any one proceeding, by
order, require the licensee to pay to the commissioner to be deposited in the
general fund of the State a civil penalty in the sum of five hundred dollars for
each offense. Upon failure of the licensee to pay the penalty within twenty days
after the mailing of the order, postage prepaid, registered and addressed to the
last known place of business of the licensee, unless the order is stayed by an
order of a court of competent jurisdiction, the commissioner may revoke the
license of the licensee or may suspend the license for a period as he may
determine.
Section 38-63-170. No license may be refused, suspended, or revoked, or renewal
refused except on reasonable notice and opportunity to be heard afforded the
person licensed or on renewal of the license. Any applicant for a license as a
bail bondsman or runner whose application has been denied or whose license has
been suspended or revoked, or renewal of the license denied, has the right of
appeal from the final order of the commissioner to the circuit court of the
county where the bail bondsman or runner resides.
Section 38-63-180. No bail bondsman or runner may:
(a) pay a fee or rebate or give or promise anything of value, directly or
indirectly, to a jailer, law enforcement officer, committing magistrate, or any
other person who has power to arrest or hold in custody, or to any public
official or public employee in order to secure a settlement, compromise,
remission, or reduction of the amount of any bail bond or the forfeiture of the
bail bond, including the payment to the law enforcement officers, directly or
indirectly, for the arrest or apprehension of a principal or principals who have
caused a forfeiture;
(b) pay a fee or rebate or give anything of value to an attorney in bail bond
matters, except in defense of any action on a bond;
(c) pay a fee or rebate or give or promise anything of value to the principal
or anyone in his behalf;
(d) participate in the capacity of an attorney at a trial or hearing of one
on whose bond he is surety, nor suggest or advise the employment of or name for
employment any particular attorney to represent his principal;
(e) accept anything of value from a principal except the premium, which may
not exceed fifteen percent of the face amount of the bond, with a minimum fee of
twenty-five dollars, provided that the bondsman is permitted to accept collateral
security or other indemnity from the principal which must be returned upon final
termination of liability on the bond. The bondsman shall identify who is paying
the premium and shall represent that the collateral security or other indemnity
has not been obtained from any person who has a greater interest in the
principal's disappearance than appearance for trial. The collateral security or
other indemnity required by the bondsman must be reasonable in relation to the
amount of the bond;
(f) solicit business in any of the courts or on the premises of any of the
courts of this State, in the office of any magistrate or in or about any place
where prisoners are confined. Loitering in or about a magistrate's office or any
place where prisoners are confined is prima facie evidence of soliciting;
(g) advise or assist the principal for the purpose of forfeiting bond.
Section 38-63-190. When a bail bondsman accepts collateral he shall give a
written receipt for the collateral. This receipt shall give in detail a full
description of the collateral received.
Section 38-63-200. No sheriff, deputy sheriff, other law enforcement officer,
judicial official, attorney, parole officer, probation officer, jailer, assistant
jailer, employee of any court of this State, or other public employee assigned
to duties relating to the administration of the court, may become a surety on a
bail bond for any person. No person covered by this section may act as agent for
any bonding company or professional bondsman, nor may have an interest, directly
or indirectly, in the financial affairs of any firm or corporation whose
principal business is acting as bondsmen. Nothing in this section prohibits any
person designated above from being a surety upon the bond of his spouse, parent,
brother, sister, child, or descendant.
Section 38-63-210. A bail bondsman may not sign nor countersign blank bail
bonds, nor may he give a power of attorney to, or otherwise authorize, anyone to
countersign his name to bonds unless the person so authorized is a licensed
bondsman or runner directly employed by the bondsman giving power of attorney.
Copies of all the powers of attorney and revocations of the powers of attorney
must be filed immediately with the commissioner and the clerk of the circuit
court of the county in the state where the bondsman giving the power of attorney
is currently writing or is obligated on bail bonds.
Section 38-63-220. Every insurer shall annually prior to July first, furnish the
clerk of court a list of all surety bondsmen appointed by it to write bail bonds
on its behalf. Every insurer who subsequently appoints a surety bondsman in the
State shall give notice of the appointment to the commissioner and clerk of court
of any county where the bondsman is doing business. All appointments are subject
to the issuance of the proper insurance agent's license to the appointee.
An insurer terminating the appointment of a surety bondsman shall file written
notice of the termination with the commissioner, together with a statement that
it has given or mailed notice to the surety bondsman and to the clerks of the
circuit courts of the counties in the State where the insurer has been obligated
on bail bonds through the agent within the past three years. Notice filed with
the commissioner shall state the reasons, if any, for termination. Information
so furnished the commissioner is privileged and must not be used as evidence in
or basis for any action against the insurer or any of its representatives.
Section 38-63-230. Any bail bondsman who discontinues writing bail bonds during
the period for which he is licensed shall notify the clerks of the circuit court
with whom he is registered and return his license to the commissioner for
cancellation within thirty days after discontinuance.
Section 38-63-240. Every person licensed as a bail bondsman may appoint as
runner any person who has been issued a runner's license. Each bail bondsman
shall before July second of each year furnish to the clerk of court of each
county and the commissioner where he is doing business a list of all runners
appointed by him. Each bail bondsman who, subsequent to the filing of this list,
appoints additional persons as runners shall file written notice with the clerk
of court of each county and the commissioner where he is doing business of the
appointment.
A bail bondsman terminating the appointment of a runner shall file written
notice of the termination with the clerk of court and the commissioner together
with a statement that he has given or mailed notice to the runner. Notice filed
with the clerk of court and the commissioner shall state the reasons, if any, for
termination. Information so furnished the commissioner is privileged and must
not be used as evidence in any action against the bail bondsman.
Section 38-63-250. If money or bonds have been deposited, bail by sureties may
be substituted for deposit at any time before a breach of the undertaking. The
official taking the new bail shall make an order that the money or bonds be
refunded to the person depositing them. They must be refunded accordingly, and
the original undertakings must be canceled.
Section 38-63-260. When the defendant has been admitted to bail, he, or another
in his behalf, may deposit with an official authorized to take bail a sum of
money or nonregistered bonds of the United States, of the State, or of any
county, city, or town within the State, equal in market value to the amount of
the bail, together with his personal undertaking, and an undertaking of any other
person, if the money or bonds are deposited by that person. Upon delivery to the
official, in whose custody the defendant is, of a certificate of deposit, he must
be discharged from custody.
When bail other than a deposit of money or bonds has been given, the defendant
or the surety may, at any time before a breach of the undertaking, deposit the
sum mentioned in the undertaking, and upon deposit being made, accompanied by a
new undertaking, the original undertaking is cancelled.
Section 38-63-270. No professional bail bondsman may become a surety on an
undertaking unless he has registered his current license in the office of the
clerk of the circuit court in the county in which he resides and registered a
certified copy of the license with the clerk of the circuit court in any other
county in which he writes bail bonds.
A surety bondsman shall also annually register a certified copy of his current
power of appointment with the clerk of the circuit court where he resides and in
any other county where he writes bail bonds on behalf of an insurer.
Section 38-63-280. Each professional bondsman acting as surety on bail bonds in
this State shall maintain deposits with the clerk of court of the county in which
the bondsman has his primary place of business equal to at least one-fourth the
amount of all bonds or undertakings written in this State on which he is
absolutely or conditionally liable as of the first day of the current month. The
deposits must be in the form of either passbook savings accounts or certificates
of deposit of building and loan associations chartered by this State or federal
savings and loan associations located within this State in which deposits are
guaranteed by the Federal Savings and Loan Insurance Corporation, not to exceed
the amount covered by insurance, or by the pledge of the assessed value of real
estate in South Carolina over any recorded mortgages and contracts of sale or
of national banks located within this State or banks chartered by this State in
which deposits are guaranteed by the Federal Deposit Insurance Corporation, not
to exceed the amount covered by insurance. The interest paid on the deposits may
be collected by the bondsman. The amount of the deposits must be reconciled with
the bondsman's liabilities as of the first day of the month before the sixteenth
of the month. The value of the deposits must not be less than five thousand
dollars. The first ten thousand dollars of such deposits must be secured by
passbook savings or certificates of deposits only. Any amounts above $10,000 may
be secured with pledges of other types of collateral approved by the clerk of
court.
Section 38-63-290. The securities deposited by a professional bondsman with the
clerk of court must be held in trust for the sole protection and benefit of the
holder of bail bonds executed by or on behalf of the undersigned bondsman in this
State. A pro rata portion of the securities must be returned to the bondsman
when the clerk of court is satisfied that the deposit of securities is in excess
of the amount required to be maintained with him by the bondsman. All the
securities must be returned if the clerk of court is satisfied that the bondsman
has satisfied, or satisfactory arrangements have been made to satisfy, the
obligations of the bondsman on all of his bail bonds written in the State. The
clerk of court may sell or transfer any of the securities or utilize the proceeds
of the securities for the purpose of satisfying the liabilities of the
professional bondsman on bail bonds given in this State on which he is liable.
Section 38-63-300. With the securities deposited with the clerk of court, the
professional bondsman shall at the same time deliver to the clerk of court a
power of attorney on a form supplied by the clerk of court, executed and
acknowledged by the professional bondsman authorizing the sale or transfer of the
securities or any part of the securities. The power of attorney shall read as
follows:
'Power of Attorney
Authorizing the Clerk of Court
to Sell or
Transfer Securities Deposited
by Professional Bondsmen
in South Carolina
Know all men by these presents, that_______ , a professional bondsman, located
in the County of_________________ ,
in the State of________________ , has authorized and appointed for himself, his
successors, heirs, and assigns, the clerk of court of this county, in the name
and in behalf of the professional bondsman, his attorney to sell or transfer any
securities deposited or that may be deposited by the professional bondsman with
the clerk of court, under the laws and regulations requiring a deposit of
securities to be made by professional bondsmen doing business in the State of
South Carolina if the sale or transfer is considered necessary by the clerk of
court to pay any liability arising under a bond which purports to be given by the
undersigned bondsman in any county in this State, and execution has been issued
against the bondsman pursuant to a judgment on the bond, and the judgment had not
been satisfied. The securities so deposited are to be held in trust by the clerk
of court for the sole protection and benefit of the holder of bail bonds executed
by or on behalf of the undersigned bondsman.
In witness whereof, I have set my hand and affixed my seal this ____ day of
________, 19____________ .
___________________ (L.S.)
Notary Public
My commission expires:
__________ .'
Section 38-63-310. Any professional bondsman whose security deposits with the
clerk of court are reduced in value below the requirements of this chapter shall,
immediately upon receipt of a notice of deficiency from the clerk of court,
deposit additional securities as are necessary to comply with the law. No
professional bondsman may sign, endorse, execute, or become a surety on any
additional bail bonds or pledge or deposit any cash, check, or other security of
any nature in lieu of a bail bond in any county in this State until the time as
he has made the additional deposit of securities as required by the notice of
deficiency.
Section 38-63-320. Each professional bail bondsman shall file with the clerk of
court of the county of his principal place of business and any other county where
he is doing business a written report in a form prescribed by the commissioner
regarding all bail bonds on which he is liable as of the first day of each month
showing:
(a) each individual bonded;
(b) the date the bond was given;
(c) the principal sum of the bond;
(d) the state or local official to whom given;
(e) the fee charged for the bonding service in each instance. The report
must be filed before the sixteenth day of each month.
Section 38-63-330. Whenever the commissioner considers it necessary he shall
visit and examine or cause to be visited and examined by some competent person
appointed by him for that purpose any professional bail bondsman subject to the
provisions of this chapter. For this purpose the commissioner or person making
the examination has free access to all books and papers of the bondsman that
relate to his business and to the books and papers kept by any of his agents or
runners.
Section 38-63-340. No professional bondsman may act as a surety on any bail bond
whose principal sum is in excess of one-half of the value of the securities
deposited with the clerk of court at that time.
Section 38-63-350. Any person, firm, association, or corporation violating any
of the provisions of this chapter, upon conviction for each offense, must be
fined not more than five hundred dollars or imprisoned for not more than six
months, or both."
Time effective
SECTION 2. This chapter shall take effect upon approval by the Governor,
except no bail bondsman or runner is required to be licensed under the provisions
of this chapter until two hundred seventy days after approval by the Governor. |