Court bonds guarantee a trustee to faithful execute their duties as ordered by the court. Similarly, if the court rules in favor of the other party, a court bond guarantees a trustee's compliance with the decision. There are two major categories of court bonds: Fiduciary or probate bonds and judicial bonds.
Fiduciary or Probate Bonds
Fiduciary or probate bonds guarantee the faithful performance of duties by the party overseeing the estates and other wealth of the deceased, disabled persons, or minors.
Judicial bonds are required by the courts to secure a party’s costs of appeal, attachment, and/or injunction. It acts as a guarantee when, for example, a payment must be made after a verdict and while an appeal is considered.
If the resolution of a lawsuit favors the defendant, the replevin bond, subject to its terms, guarantees the plaintiff will return the listed items, plus any other related compensation to the defendant.
Both defendant/supersedeas and plaintiff appeal bonds guarantee compliance with monetary judgements if the court rules in favor of the other party when appealing to a higher court.
Bankruptcy Trustee Bonds
Bankruptcy trustee bonds guarantee the faithful performance of duty by a person appointed as a trustee, receiver, or referee in a bankruptcy action. These actions include Chapter 7 Liquidation, Chapter 11 Reorganization, Chapter 13 Personal Reorganization, and Equity Court.
Subject to specific terms, guardianship bonds and conservator bonds guarantee an honest accounting and faithful performance of duties by individuals responsible for the property and monies of minors or persons with limited intellectual functioning.