When should collateral received be returned to the depositor?

The correct answer is that collateral received should be returned to the depositor as soon as the bond has been exonerated and premiums are paid. In the context of bail, collateral is typically posted to secure the release of a defendant from custody. Once the underlying legal obligations are fulfilled—such as the completion of court appearances and the bond is exonerated—the bail licensee is responsible for returning the collateral to the individual who posted it.

This process typically hinges on two main factors: the exoneration of the bond and the settlement of any outstanding premiums related to the bail arrangement. If the premium has not been paid, it may lead to a delay in the return of collateral. Thus, tying the return of collateral to both the exoneration and payment of premiums ensures that all parties involved have met their financial and legal obligations before any funds are returned.

In contrast, the other options suggest differing timelines and conditions for the return of collateral that do not align with the standard practices established in the bail industry. For example, waiting for a notification from a bail licensee or a written notice from the defendant may create unnecessary delays that contradict the timely obligation to return collateral once the bond conditions are satisfied. Collateral should not remain with the bail agent longer