In previous articles the bond experts at Jurisco explained why collateral is a necessity in the surety bond industry. To quickly summarize: collateral is required on almost all defendant bonds applicants are appealing a money judgement or court action of some kind. Full collateral of the contested amount is required to provide adequate ‘good faith’ that the appeal action is not just a delay tactic by the defense in order to move assets out of jurisdiction and that the full sum of the contested amount will be satisfied if the appeal is denied.
What happens, however, if a defendant is faced with the possibility of two surety bonds on an appeal action. This is a rare circumstance where a defendant needs both a Superseadas/Appeal Bond and a Transfer of Lien Bond. This situation occurs when a defendant wishes to appeal a judgment and also wishes to sell a property that currently has a lien attached. This can often result in confusion, consternation and rancor over the double burden of having to fulfill the collateral requirements of both bonds. Just the bonding process alone (not counting attorney fees) could make the appeal process prohibitively expensive.
There are some surety agencies who feel that requiring an applicant to post collateral for both bonds is unnecessarily burdensome. The surety bond experts at Jurisco, for example, believe that a single posting of collateral is sufficient because it was a single judgement that created the need for the bonds. This saves the client precious time and money; and may even provide the financial leeway necessary to allow them to proceed with an appeal action.
For any question about rates and applications, feel free to contact the industry leaders at Jurisco