The meaning of the term “inactive bond status” is still unclear to many people. Bonds can, however, lose their activity for a variety of reasons. Many people mistakenly think of it as passive connections. Small volume daily trading characterizes an inactive bond.
In addition, they are known as illiquid bonds. It is a rarely traded stock that can only be purchased in increments of five shares. Due to their illiquidity, it may be challenging to sell these bonds. These assets’ bond prices are unstable since even a small change in demand can significantly impact their rates. Since inactive securities are kept in cabinets until needed, they are occasionally referred to as cabinet securities.
An inactive bond status today denotes that the bond is no longer valid. It implies that the defendant can no longer be freed on the previously posted bond. Such instances can occur in a variety of situations. Here, let’s look at a few scenes to help us comprehend.
The judge can place bail on your head before you are arrested and transported to jail. The bond may be standard or lower than standard, depending on prior behavior and the suspected offense. You will consider hiring a bail bond agent who will take care of your bond for 10% extra if you are offered a common bond.
This technically means that the bondsman will receive $100 as his nonrefundable charge if the asking price for the bond is roughly $10,000. The bondsman will pay the full bond money for you in exchange. The money paid to the bondsman assures him that you will show up for the hearing and appear before the court.
The bondsman will now assume the risk, and the payment will be made when the bond is executed. The bail bond agent will accept the risk if you are detained for a severe crime and request a bond within 24 hours, basing your case on a maximum of 5 years of exposure. For first-time offenders, the risk that the bail agent must assume is minimal.
You were only charged with one offense, but the prosecution introduced additional accusations against you during the arraignment. However, the prosecutor now thinks you may have engaged in severe additional misbehavior due to the investigation. Therefore, they will request to be arraigned on the new counts. The bondsman is no longer accountable for the bond in such a situation.
This is thus because the events that gave rise to the relationship have varied widely. Initially, you would face a five-year prison sentence; nevertheless, that sentence has been increased to ten years. The bond conditions have changed, and the increased flight risk means that the bondsman is no longer required to uphold the bond. The bond status is inactive throughout that time.
When the risk was reduced to five years, the bondsman first consented to assume the chance of covering your bond. Since the threat has escalated, you are more likely to leave than someone facing a five-year sentence.