Many bail bond forfeitures these days fall under the exoneration provision of 22.13(a)(5). An issue therefore arises on how to calculate the "interest accrued on the bond amount" referred to in 22.13(b). Presumably this statute refers to the interest spoken of in 22.16(c). Unfortunately, that statute merely refers one to "the same rate as provided for the accrual of pre-judgment interest in civil cases." Unfortunately, that rate is currently in some doubt. See InsureSuite, Inc., No. 03-05-0822-CV (7-28-06). What rate are you using (and why)? I am tempted to use the current prime rate of 8.25% as provided in 304.003 of the Finance Code.
[This message was edited by Martin Peterson on 03-21-07 at .]
...we use 6 percent, as adjudged from Finance Code 302.002, which I believe seems more applicable to bond forfeitures. (I believe there is also case law that notes the 6% figure - Dees v. State, 822 S.W.2d 703 (Tex. App. 1991), though it may be based on a since-repealed statute unreleated to 302.002).
The formula we use is
1. Bond amount times .06 � which gives you what yearly interest would be on the bond
2. Divide the yearly interest amount 365 � which gives you the daily interest amount
3. Multiply the daily interest amount by the number of days from the date of the nisi signature to the date of the final judgment signature.
That's probably a lot more than you were looking for.
"...we use 6 percent, as adjudged from
Finance Code 302.002, which I believe seems
more applicable to bond forfeitures."
Is this rate still 6%? (I don't have a Finance Code handy.)
While Shepardizing (sp?) the InsureSuite, Inc. case, I found this website:
that lists the current interest rate for judgments, which this month is 6%. It says it bases its rate on 304.003 Tex Fin Code. The site also has interesting stuff on pawn shop interest rates. I like their rates a lot better. We'd get a lot more money for our counties.
Thanks, e, we had not been putting interest in our nisi judgments, because we are a "100%" county, and I figured we were pounding the poor bondsmen enough. Lately, however, some have been filing MNT's just to buy time. I told them the old days were over, and now I know where to find my rate! Thanks again.
Bail Bonds and personal bonds are forfeited in the following manner: The name of the defendant shall be called distinctly at the courthouse door, and if the defendant does not appear within a reasonable time after such call is made, judgment shall be entered that the State of California recover of the defendant the amount of money in which he is bound, and of his sureties, if any, the amount of money in which they are respectively bound, which judgment shall state that the same will be made final, unless good cause be shown why the defendant did not appear.
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