Final answer:
A bondsman can either keep and sell the collateral to recover the bail money if a defendant fails to appear in court or return it after the defendant complies with court appearances and terms of the bail bond.
Step-by-step explanation:
When dealing with a bondsman, collateral is something valuable, often property or equipment, that acts as security for the bond. If a defendant fails to appear in court, the bondsman has two options regarding the collateral: they can either keep it and eventually sell the property to recover the bail money they fronted, or they can return it to the person who offered it, once the defendant complies with all court appearances and the terms of the bail bond are satisfied. The primary purpose of collateral is to ensure the bondsman is not at a financial loss if the defendant does not fulfill their obligations.