There are many circumstances when a Surety Bond may be required. A surety bond is an instrument whereby the obligee (the party requiring the bond) will be paid a sum up to the penal amount (the face amount) of the bond if certain conditions occur.
In the Surety world, there are three major categories of bonds—Commercial Surety Bonds, Contract Surety Bonds, and Court Bonds.
Often times a judge will require the posting of a bond before a litigant may proceed with a claim, appeal, or request for an injunction. Reduction of frivolous lawsuits is the public policy reason driving bond requirements in these situations. The judge will set the amount of the bond based on her estimation of the other party’s damages in the event the propounding litigant (the party whose action necessitates the bond) loses.
Other types of bonds that fall under the Court Bond category are Probate Bonds and Conservator Bonds. These bonds are used when a person serves as a trustee in charge of administering an estate of another person. In both settings, the value of the estate is usually set as the bond amount.
Please call or email Fulcrum Point Insurance and Bonding Agency, Inc. to speak with a Surety Bond professional about any type of Court Bond you might need.