If you should find yourself in a situation with a court that requires you to purchase a bond to proceed, you may not know what to do. It is our goal to help you understand how to get a Judicial Court Bond with this information.
What is a Judicial Court Bond?
Judicial Court Bonds may have many names, but they all function similarly by guaranteeing the performance or obligation of one party in a lawsuit. The bond is for the protection of the other party in that lawsuit, and works like insurance. Examples of common Judicial Court Bonds include Appeal/Supersedeas Bonds, Replevin Bonds, and Injunction/TRO Bonds.
Appeal/Supersedeas Bonds are filed with the court by a party against whom a judgement has been rendered in order to stay the execution of judgement pending an appeal to a higher court. The bond guarantees satisfaction of the judgement if it is upheld upon appeal.
Replevin Bonds are required when there is a lawsuit to recover specified personal property that the Plaintiff claims they have good title to, but the property is in the Defendant’s possession. The bond protects the Defendant who may suffer damages from a wrongful Replevin.
Injunction/TRO Bonds are typically required when a Plaintiff files a lawsuit to stop the Defendant from doing some act that the Plaintiff believes he has a right to prohibit the Defendant from doing. The bond indemnifies the defendant against loss in cases where it is decided that the court should not have granted the injunction.
What are the requirements to get a Judicial Court Bond?
There are three requirements for obtaining a Judicial Court Bond:
- Submit an application and signed indemnity agreement supplied by the surety broker/agent;
- Provide a copy of the court papers for the applicable action being filed; and
- Provide collateral, usually in the form of an Irrevocable Letter of Credit.
Why is collateral required for a Judicial Court Bond?
Judicial Court Bonds generally represent more risk because the possibility of payout is much higher. This is particularly true for Appeal/ Supersedeas Bonds since you have already had a judgement made against you. Therefore, collateral reassures the surety underwriter that you can cover your debts.
The most accepted form of collateral is an Irrevocable Letter of Credit or ILOC. Most often, you can get an ILOC from your bank. Since the surety underwriter will want to become familiar with the financial strength of the bank and the wording of the ILOC, it’s best to get it as soon as possible in the process. The surety agent/broker at the company you choose to work with will need the name and address of the bank, a draft of the ILOC language, and once the ILOC has been approved, the original ILOC.
The surety company will issue the bond to you once they have the ILOC, and you can then present it to the court and continue with proceedings. You should allow plenty of time for all parties involved to complete their parts in issuing the bond.
Who do you contact for a Judicial Court Bond?
Brunswick Companies is a full-service, national surety bonding agency, licensed in every U.S. state. Our surety specialists provide responsive, knowledgeable assistance to attorneys and other individuals in need of court bonds.
Our Surety Bonds Team has extensive experience in providing court and appeal bonds. They have developed strong relationships with the leading surety bonding companies to provide our clients with access to more favorable terms and conditions.
Call 800-686-8080 to speak with a member of our Surety Bond Team to begin the process of obtaining a Judicial Court Bond.