The Appeal Surety Bond is also referred to as a Supersedeas Bond since both an Appeal and Supersedeas Bond guarantee that the individual filing the bond will pay for all court costs associated with the filing. Only the bond amount varies between the two bonds.
The three parties of this bond include the obligee, the principal, and the surety company. The obligee is the court requiring the principal to be bonded. The principal must be bonded in order to file an appeal. The surety company is the party that underwrites and ensures the bond.
The Appeal Surety Bond is an agreement between the three parties that the principal will act accordingly with the bond requirments. If the principal acts fraudulently or fails to abide by the bond requirements, then the surety company will cover the claim filed against the bond.
When a person files an appeal on an original court decision, this bond makes sure that the appeal is legitimate. Payment for an unsuccessful appeal by the filing individual is the method by which the bond ensures the appeal is not a waste of the court’s time and money.
If an appeal is unsuccessful, then this bond will make sure all original judgments are paid. With this bond, people are discouraged from filing frivolous appeals while protecting the appellate system. Also, if the appeal fails, the appellate will not be able to avoid financial responsibility for the initial decision of the court.
As stated before, the court requires any individual filing an appeal to be bonded. The bonding requirements state that the individual will not file a frivolous appeal and abuse the system. Both state and federal courts require this bond type.
The principal should be informed of all requirements before applying for a bond. If the principal acts against the bond and a claim is filed, then the surety company will pay for all paid claims, which the principal then must pay back to the surety.
The cost for the bond is also referred to as the bond premium. The bond premium is the one cost that the surety company sets. All other fees that are related to the bond are set by the obligee. The bond premium is only a small percentage of the bond amount.
The bond amount is set by the obligee, not the surety company. Usually, the judge will set the bond amount based on the specific court case. The bond amount is the amount of coverage the surety company will pay out to the party harmed if a claim is filed against the bond.