6.1 Discontinuing the Business, Death or Incapacity, and Transfer of the Business

Category VI, Cancellation of License, Death, Incompetence, Suspension and Revocation, carries 5–8 questions. Items VI.A and VI.B cite 114CSR103-10.1, 10.2 and 10.3. The common theme is that bonds outlive the bondsman's business. Outstanding obligations must be resolved, and the law says who may do so and how.

Discontinuing the business: 10.1

Any bail bondsman who discontinues writing bail bonds during the period for which the bail bondsman is licensed, shall inform the Commissioner, in writing, within 30 days after the discontinuance.

• Trigger: stopping writing bonds during the license period (retiring mid-term, closing the office, leaving the industry).
• Deadline: within 30 days after discontinuance.
• Form: in writing.

Related duties when a license ends:

• Return the ID card within 10 working days if the license is revoked, expired or otherwise terminated (3.6).
• Outstanding bonds stay outstanding. Discontinuing does not discharge them.
• Jurisdiction continues. The Commissioner keeps jurisdiction over a person who cancels or lets the license lapse, for violations committed while licensed (11.4).

Death, incapacitation or incompetence: 10.2

If a licensed bondsman dies, becomes incapacitated, or becomes incompetent, any of the following may contract with another licensed bail bondsman to perform the needed duties so the outstanding bail bond obligations are resolved:

The contract must be filed with the Commissioner and with every clerk of court where the bondsman is known to have pending outstanding obligations.

For a professional bondsman, the deposit matters too. Under 8.10, if the bondsman stops writing bonds because of death, permanent incapacitation or another reason that leads to returning the license, the Commissioner returns the part of the deposit above what is needed to secure the remaining bond liability, once satisfied that no more bonds can be written against it. All securities are returned when the bond obligations are satisfied or satisfactorily arranged (8.9).

Transferring the business: 10.3

A bondsman may contract to transfer, convey or assign the business to another licensed bail bondsman:

• The contract must list the transferring bondsman's pending, outstanding bail bond obligations.
• The contract is filed with the Commissioner.
• The contract shall allow the transferring bondsman to transfer assets to the purchaser, including any cash or approved securities held by the Commissioner as security for bail bonds.
• Despite the filing, the transferor remains responsible for all outstanding bond obligations until relieved of each obligation or until any final forfeiture judgment on it is satisfied.

Comparing the three events

Scenarios

1. Retirement in month nine. A bondsman stops writing new bonds on March 1, mid-term. She must notify the OIC in writing by March 31. Her open bonds remain her responsibility until resolved.
2. Sudden death. A bondsman dies with 14 open bonds in three counties. His widow, as surviving spouse, contracts with a licensed bondsman to handle them. The contract goes to the OIC and to the circuit and magistrate clerks in all three counties.
3. Sale of the agency. A professional bondsman sells his business to a licensed colleague. The contract lists every open bond and lets the seller's OIC-held deposit move to the buyer. If a defendant on one of the seller's bonds later fails to appear, the seller is still responsible on that bond until relieved or until the forfeiture judgment is paid.

Exam traps

• 30 days, in writing, after discontinuing during the license term.
• The contract partner must be a licensed bail bondsman.
• File with the Commissioner and every court clerk with pending obligations (death or incapacity).
• A transfer does not release the transferor until relieved of each obligation.