NORTH CAROLINA GENERAL ASSEMBLY
1963 SESSION
CHAPTER 1225
HOUSE BILL 537
AN ACT CONCERNING THE LICENSING OF BAIL BONDSMEN AND RUNNERS, PROVIDING FOR LICENSE FEES, AND RULES AND REGULATIONS OF CONDUCT.
The General Assembly of North Carolina do enact:
Section 1. The following words when used in this Act shall have the following meanings:
(1) "Commissioner" shall mean the Commissioner of Insurance.
(2) "Insurer" shall mean 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.
(3) "Bail Bondsman" shall mean a surety bondsman, professional bondsman or a property bondsman as hereinafter defined.
(4) "Surety Bondsman" shall mean any person who has been approved by the Commissioner and 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 therefor.
(5) "Professional Bondsman" shall mean any person who has been approved by the Commissioner and who pledges cash or approved unregistered bonds as security for a bail bond in connection with a judicial proceeding and receives or is promised money or other things of value.
(6) "Property Bondsman" is a person or persons who pledge real or other property as security for a bail bond in a judicial proceeding and receives or is promised money or other things of value therefor.
(7) "Runner" shall mean a person employed by a bail bondsman for the purpose of assisting the bail bondsman in presenting the defendant in court when required, or to assist in apprehension and surrender of defendant to the court, or keeping defendant under necessary surveillance. This does not affect the right of bail bondsmen to hire counsel or to ask assistance of law enforcement officers.
Sec. 2. (1) The Commissioner shall have full power and authority to administer the provisions of this Act, which regulates bail bondsmen and runners and to that end to adopt, and promulgate rules and regulations to enforce the purposes and provisions of this Act. Subject to the provisions of the State Personnel Act, the Commissioner may employ and discharge such employees, examiners, and such other assistants as shall be deemed necessary, and he shall prescribe their duties.
(2) Any written instrument purporting to be a copy of any action, proceeding, or finding of fact by the Commissioner, or any record of the Commissioner authenticated under the hand of the Commissioner by the seal of his office shall be accepted by all the courts of this State as prima facie evidence of the contents thereof.
Sec. 3. No undertaking shall be invalid, nor shall any person be discharged from his undertaking, nor a forfeiture thereof be stayed nor shall judgment thereon be stayed, set aside or reversed, the collection of any such judgment be barred or defeated by reason of any defect of form, omission or recital or of condition, failure to note or record the default of any principal or surety, or because of any other irregularity, or because the undertaking was entered into on Sunday or other holiday, if it appears from the tenor of the undertaking before what magistrate or at what court the principal was bound to appear, and that the official before whom it was entered into was legally authorized to take it and the amount of bail is stated.
The liability of a person on an undertaking shall not be affected by reason of the lack of any qualifications, sufficiency or competency provided in the criminal procedure law, or by reason of any other agreement that is expressed in the undertaking, or because the defendant has not joined in the undertaking.
Sec. 4. Each and every surety for the release of a person on bail shall be qualified as:
(1) An insurer and represented by a surety bondsman or bondsmen; or
(2) A professional bondsman properly qualified and approved by the Commissioner; or
(3) A natural person who has reached the age of 21 years, a citizen of the United States and a bona fide resident of North Carolina for a period of one (1) year immediately past and who holds record title to property in North Carolina acceptable to the proper authority approving the bail bond.
Sec. 5. At any time before there has been a breach of the undertaking in any type of bail or fine and cash bond the surety may surrender the defendant, or the defendant may surrender himself, to the official to whose custody the defendant was committed at the time bail was taken, or to the official into whose custody the defendant would have been given had he been committed. The defendant may be surrendered without the return of premium for the bond if he has been guilty of nonpayment of premium, changing address without notifying his bondsman, conceals himself, or leaves the jurisdiction of the court without the permission of his bondsman, or of violating his contract with the bondsman in any way that does harm to the bondsman, or the surety, or violates his obligation to the court.
Sec. 6. The person desiring to make a surrender of the defendant shall procure a certified copy of the undertakings and deliver them 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 be been committed, who shall detain the defendant in his custody thereon, as upon a commitment, and by a certificate in writing acknowledge the surrender.
Upon the presentation of certified 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, as the case may be, is pending, shall upon notice of three (3) 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, order that the obligors be exonerated from liability of their undertakings; and, if money or bonds have been deposited as bail, that such money or bonds be refunded.
Sec. 7. For the purpose of surrendering the defendant, the surety may arrest him before the forfeiture of the undertaking, or by written authority endorsed on a certified copy of the undertaking, may empower any peace officer to make arrest, first paying the lawful fees therefor.
Sec. 8. The procedure for forfeiture of bail shall be that provided in Article 11 of Chapter 15 of the General Statutes and all provisions of that Article shall continue in full force and effect except to the extent of direct conflict, if any, with this Act.
Sec. 9. No person shall act in the capacity of a bail bondsman or runner or perform any of the functions, duties or powers prescribed for bail bondsmen or runner under the provisions of this Act unless that person shall be qualified and licensed as provided in this Act: Provided, however, that none of the provisions or terms of this Section shall prohibit any individual or individuals, from pledging real or other property as security for a bail bond in judicial proceedings and who does not receive, or is not promised, money, or other things of value therefor.
No license shall be issued except in compliance with this Act and none shall be issued except to an individual: Provided, however, that upon the taking effect of this Act, any person then performing the functions of a bail bondsman or runner, within the definition of this Act, shall not be required to take an examination, but shall be issued a license upon making the application herein required, and renewals thereof shall be granted subject to the provisions of Sections 10, 11 and 17 of this Act: Provided, further, that the provisions of this Act shall not apply to the holder of a valid all lines fire and casualty agent's license.
A firm, partnership, association, or corporation, as such shall not be licensed.
The applicant shall apply in writing, on forms prepared and supplied by the Commissioner, and the Commissioner may propound any reasonable interrogatories to an applicant for a license under this Act or on any renewal thereof, relating to his qualifications, residence, prospective place of business, and any other matters which, in the opinion of the Commissioner, are deemed necessary or expedient in order to protect the public and ascertain the qualifications of the applicant. The Commissioner may also conduct any reasonable inquiry or investigation he sees fit, 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 shall not preclude him from applying as many times as he desires, but no application shall be considered by the Commissioner within one (1) year subsequent to the date upon which the Commissioner denied the last application.
Sec. 10. All licenses issued shall expire annually on June 30 unless revoked or suspended prior thereto by the Commissioner, or upon notice served upon the Commissioner that the insurer or employer of any runner has cancelled the licensee's authority to act for such insurer or employer.
Sec. 11. The application for license, in addition to the matters set out in Section 9, to serve as a bail bondsman must affirmatively show:
Applicant is a natural person who has reached the age of 21 years; is a citizen of the United States, and has been a bona fide resident of the State for one (1) year last past, will actively engage in the bail bond business, and has knowledge, experience or instruction in the bail bond business, or has held a valid all lines fire and casualty agent's license for one (1) year within the last five (5) years; or has been employed by a company engaged in writing bail bonds in which field he has actively engaged for at least one (1) year of the last five (5) years; or is actively engaged in bail bond business at the time this Act is passed.
Sec. 12. A license fee of ten dollars ($10.00) shall be submitted to the Commissioner with each application.
Applicant shall also furnish with his application, a complete set of his fingerprints and a recent credential-size full face photograph of himself. The applicant's fingerprints shall be certified by an authorized law enforcement officer.
Sec. 13. In addition to the requirements prescribed in Section 11 above, an applicant for a professional bondsman license shall furnish annually a detailed financial statement under oath, and such statement shall be subject to the same examination as is prescribed by law for domestic insurance companies.
Sec. 14. In addition to the requirements prescribed in Section 9 above, an applicant for a license to serve as a runner must affirmatively show:
That the applicant is a natural person who has reached the age of 21 years;
That the applicant is a citizen of the United States; has been a bona fide resident of this State for more than six (6) months last past;
That the applicant will be employed by only one bail bondsman, who will supervise the work of the applicant, and be responsible for the runner's conduct in the bail bond business; and
The application must be endorsed by the appointing bail bondsman, who shall obligate himself to supervise the runner's activities in his behalf.
A license fee of ten dollars ($10.00) shall be submitted to the Commissioner with each application, together with fingerprints and photograph.
Sec. 15. The applicant shall be required to appear in person and take a written examination prepared by the Commissioner, testing his ability and qualifications to be a bail bondsman or runner.
Each applicant shall become eligible for examination sixty (60) days after the date the application is received by the Commissioner, if the Commissioner is satisfied as to the applicant's fitness to take the examination. Examinations shall be held at such times and places as designated by the Commissioner, and applicant shall be given notice of such time and place not less than fifteen (15) days prior to taking the examination.
The fee for such examination shall be ten dollars ($10.00) and shall be submitted with the application.
The failure of an applicant to pass an examination shall not preclude him from taking subsequent examinations: Provided, however, that at least one (1) year must intervene between examinations.
Sec. 16. A renewal license shall be issued by the Commissioner to a licensee who has continuously maintained same in effect without further examination, unless deemed necessary by the Commissioner, upon the payment of a renewal fee of ten dollars ($10.00), but such licensee shall in all other respects be required to comply with and be subject to the provisions of this Act. After the receipt of such licensee's application for renewal the current license shall continue in effect until the renewal license is issued or denied for cause.
Sec. 17. The Commissioner may deny, suspend, revoke or refuse to renew any license issued under this Act for any of the following causes:
(1) For any cause for which issuance of the license could have been refused had it then existed and been known to the Commissioner.
(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 moneys, belonging to insurers or others and received in the conduct of business under the license.
(5) Conviction of a felony involving moral turpitude.
(6) Fraudulent or dishonest practices in the conduct of business under the license.
(7) Willful failure to comply with, or willful violation of any proper order, rule or regulation of the Commissioner.
(8) When, in the judgment of the Commissioner, the licensee has, in the conduct of affairs under the license, demonstrated incompetency, or untrustworthiness, or conduct or practices rendering him unfit to carry on the bail bond business or making his continuance in such business detrimental to the public interest, or that he is no longer in good faith carrying on the bail bond business, or that he is guilty of rebating, or offering to rebate, or unlawfully dividing, or offering to divide his commissions in the case of limited surety agents, or premiums in the case of professional bondsmen, and for such reasons is found by the Commissioner to be a source of detriment, injury or loss to the public.
Sec. 18. If, after investigation, it shall appear to the satisfaction of the Commissioner that a bail bondsman or runner has been guilty of violating any of the laws of this State relating to bail bonds, the Commissioner shall, upon ten days' notice in writing to the bail bondsman or runner and to the insurer represented by him if a surety bondsman, accompanied by a copy of the charges of the unlawful conduct of such bail bondsman or runner, suspend the license of such bail bondsman or runner, unless on or before the expiration of the ten (10) days the bail bondsman or runner shall make the Commissioner answer to the charges. If, after the expiration of said ten (10) days, and within twenty (20) days thereafter, the bail bondsman or runner shall have failed to make answer or deny said charges the license of the bail bondsman or runner shall thereupon stand revoked. If, however, the bail bondsman or runner shall file written answer denying the charges within the time specified, the Commissioner shall call a hearing within a reasonable time for the purpose of taking testimony and evidence on any issue of fact made by the charges and answer. The Commissioner shall give notice to such bail bondsman or runner and to the insurer represented by him, if a surety bondsman, of the time and place of the hearing. The parties shall have the right to produce witnesses, and to appear personally or by counsel. If upon such hearing the Commissioner shall determine that the bail bondsman or runner is guilty as alleged in said charges, he shall thereupon revoke the license of the bail bondsman or runner or suspend him for a definite period of time to be fixed in the order of suspension.
Sec. 19. Any applicant for license as bail bondsman or runner whose application has been denied or whose license shall have been so suspended or revoked, or renewal thereof denied, shall have the right of appeal from such final order of the Commissioner thereon to the Superior Court of the county from which the bail bondsman or runner applied for his license, and such appeal shall be heard de novo.
Sec. 20. No bail bondsman or runner shall:
Suggest or advise the employment of or name for employment any particular attorney to represent his principal.
Pay a fee or rebate or give or promise anything of value to a jailer, policeman, peace 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 thereof.
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.
Pay a fee or rebate or give or promise anything of value to the principal or anyone in his behalf.
Participate in the capacity of an attorney at a trial or hearing of one on whose bond he is surety.
Accept anything of value from a principal except the premium, provided that the bondsman shall be permitted to accept collateral security or other indemnity from the principal which shall be returned upon final termination of liability on the bond. Such collateral security or other indemnity required by the bondsman must be reasonable in relation to the amount of the bond.
Solicit business in or about any place where prisoners are confined.
Sec. 21. When a bail bondsman accepts collateral he shall give a written receipt for same, and this receipt shall give in detail a full description of the collateral received.
Sec. 22. The following persons or classes shall not be bail bondsmen or runners and shall not directly or indirectly receive any benefits from the execution of any bail bond: jailers, police officers, committing magistrates, justices of the peace, municipal or magistrate court judges, sheriffs, deputy sheriffs and constables, any person having the power to arrest or having anything to do with the control of Federal, State, county or municipal prisoners.
Sec. 23. A bail bondsman shall not sign nor countersign in blank any bond, nor shall 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 directly employed by the bondsman giving such power of attorney.
Sec. 24. Every insurer shall annually, prior to July 1, furnish the Commissioner a list of all surety bondsmen appointed by it to write bail bonds on its behalf. Every such insurer who subsequently appoints a surety bondsman in the State, shall give notice thereof to the Commissioner along with a written application for license for said bondsman. All such appointments shall be subject to the issuance of a license to such surety bondsman.
An insurer terminating the appointment of a surety bondsman shall, file written notice thereof with the Commissioner, together with a statement that it has given or mailed notice to the surety bondsman. Such notice filed with the Commissioner shall state the reasons, if any, for such termination. Information so furnished the Commissioner shall be privileged and shall not be used as evidence in or basis for any action against the insurer or any of its representatives.
Sec. 25. Any bail bondsman who discontinues writing bail bonds during the period for which he is licensed shall notify the Clerks of the Superior Court and the sheriffs with whom he is registered and return his license to the Commissioner for cancellation within thirty (30) days for such discontinuance.
Sec. 26. Every person duly licensed as a bail bondsman may appoint as runner any person who holds or has qualified for a runner's license. Each bail bondsman must, on or before July 1 of each year, furnish to the Commissioner a list of all runners appointed by him. Each such bail bondsman who shall, subsequent to the filing of this list, appoint additional persons as runners shall file written notice with the Commissioner of such appointment.
A bail bondsman terminating the appointment of a runner shall file written notice thereof with the Commissioner, together with a statement that he has given or mailed notice to the runner. Such notice filed with the Commissioner shall state the reasons, if any, for such termination. Information so furnished the Commissioner shall be privileged and shall not be used as evidence in any action against the bail bondsman.
Sec. 27. If money or bonds have been deposited, bail by sureties may be substituted therefor at any time before a breach of the undertaking, and the official taking the new bail shall make an order that the money or bonds be refunded to the person depositing the same and they shall be refunded accordingly, and the original undertakings shall be cancelled.
Sec. 28. 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, or of the State, or of any county, city or town within the State, equal in market value to the amount of such bail, together with his personal undertaking, and an undertaking of such other person, if the money or bonds are deposited by another. Upon delivery to the official in whose custody the defendant is of a certificate of such deposit, he shall be discharged from custody in the cause.
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 such deposit being made, accompanied by a new undertaking, the original undertaking shall be cancelled.
Sec. 29. Professional bondsmen shall, before writing cash or security bail bonds, deposit with the Commissioner in the same manner as required of domestic insurance companies, an amount determined by the Commissioner not less than twenty-five thousand dollars ($25,000.00) but not more than fifty thousand dollars ($50,000.00). Such deposit shall be subject to all laws, rules and regulations as to guaranty funds of domestic insurance companies.
A license may be refused, suspended or cancelled by the Commissioner at any time he determines that the financial statement filed by the applicant or professional bondsman is inadequate to meet the requirements of the Commissioner.
Sec. 30. Every property bondsman shall file with the undertaking an affidavit stating whether or not he or any one for his use has been promised or has received any security or consideration for his undertaking, and if so, the nature and amount thereof, and the name of the person by whom such promise was made or from whom such security or consideration was received. Any willful misstatement in such affidavit relating to the security or consideration promised or given shall render the person making it subject to the same prosecution and penalty as one who commits perjury. An action to enforce any indemnity agreement shall not lie in favor of the surety against such indemnitor, except with respect to agreements set forth in such affidavit. In an action by the indemnitor against the surety to recover any collateral or security given by the indemnitor, such surety shall have the right to retain only such security or collateral as is mentioned in the affidavit required above.
Sec. 31. No bail bondsman shall become a surety on an undertaking unless he has registered his license in the office of the sheriff and with the Clerk of the Superior Court in the county in which the bondsman resides and he may then become such surety in any other county upon presenting to the official required to approve the sufficiency of bail, a certificate of such registration. A surety bondsman shall also file a certified copy of his appointment by power of attorney from each insurer which he represents as agent with each of said officers. Registration and filing of certified copy of renewed power of attorney shall be performed annually on July 1. The Clerk of the Superior Court and the sheriff shall not permit the registration of a bail bondsman unless such bondsman is currently licensed by the Commissioner.
Sec. 32. Fees collected by the Commissioner pursuant to this Act shall be paid into the general fund of the State.
Sec. 33. Any person, firm, association or corporation violating any of the provisions of this Act shall, upon conviction, be fined not more than five hundred dollars ($500.00) for each offense, or imprisoned in the county jail for not more than six (6) months, or both.
Sec. 34. This Act shall apply to the following Counties: Beaufort, Buncombe, Caldwell, Cleveland, Columbus, Currituck, Greene, Guilford, Hyde, Iredell, Jackson, Lenoir, Madison, McDowell, Person, Richmond, Rutherford, Transylvania, Yadkin and Yancey.
Sec. 35. All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 36. The provisions of this Act shall become effective January 1, 1964.
In the General Assembly read three times and ratified, this the 26th day of June, 1963.