Surety Bond Professionals is a family-owned and operated agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all your Iowa appeal bond needs.
What Are They?
The most common type of Iowa appeal bond is a supersedeas bond. A supersedeas bond is a prerequisite for staying the execution of a judgment for damages pending the outcome of an appeal. Without an Iowa appeal bond, the execution of the judgment can proceed even though the court’s decision is still under appeal.
The purpose of the bond is to ensure that the judgment and any related court costs, fees, and interest that accrues while the case is under appeal will be paid if the appeal is unsuccessful. Therefore, an Iowa appeal bond provides financial protection for the court and the party awarded the judgment.
Iowa appeal bonds also help deter people from filing frivolous appeals—appeals intended only to delay execution of the trial court’s judgment.
Who Needs Them?
Anyone filing an appeal and requesting a stay of the original judgment while the lower court’s decision is under appeal must purchase an Iowa appeal bond. When the judgment is for a cash award, the required bond amount is 110% of that award, but no less than $1,000.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
The surety bond agreement that forms the basis for an Iowa appeal bond is a legally binding contract between three parties, referred to as the obligee, the principal, and the surety:
- The obligee is the court requiring the bond.
- The principal is the appellant purchasing the bonds.
- The surety is the bonding company that underwrites and authorizes the bond.
Most appeals are unsuccessful, and the principal will likely end up having to pay the judgment ordered by the original trial court. If the principal loses the appeal and does not pay the judgment within a certain amount of time, the surety is liable for paying it. Consequently, bonding companies typically require Iowa appeal bonds to be fully collateralized.
Failure to pay the judgment within the prescribed time after an unsuccessful appeal will result in forfeiture of the collateral the principal put up at the time the Iowa appeal bond was purchased. The court, in its capacity as the obligee, will use the collateral to pay the judgment as originally ordered.
What Do They Cost?
Because an Iowa appeal bond is most often fully collateralized, there is no significant financial risk to the bonding company, so the principal’s personal creditworthiness is not a major consideration, as it is with most types of surety bonds. Typically this results in a lower premium rate of 1-1.5%. Bonds for entities with very strong financials can sometimes get this collateral requirement reduced or eliminated. With lesser/no collateral, the bond rate will typically be higher around 2-3%.
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Our surety bond professionals will get you the Iowa appeal bond you need at a competitive rate.