What Is Court Surety Bond?
Just like other surety bonds, court surety bond represents a three-party contractual deal involving a principal, obligee and surety. Here, principal is a body who is required to announce the bond (appellant or fiduciary), obligee is the corresponding court, and surety is the bond underwriter that assures for principal.
A company or individual can use court surety bond to protect against risks and potential losses that may occur as a result of legal proceedings. This type of bond guarantees that you will comply with your responsibilities as ordered by law, state or federal courts. It is also known as judicial surety bond.
How Does Court Surety Bond Work?
Court Surety bonds are required during particular court proceedings. These bonds offer some sort of financial security as a protection for one of the involved parties pursuing a legal proceeding. This type of bond works to assure compliance with court decisions.
The most common court surety bonds are appeal bonds and probate bonds. While the former is a type of surety bond that is required when a litigant wants to appeal a ruling to a higher court, the latter is a surety bond that ensures you will fulfill your responsibility as an appointed individual.