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 Maryland appeal bond needs.
What Are They?
Maryland appeal bonds, also known as supersedeas bonds, serve several important purposes:
- They are required to stay the execution of a court’s judgment while the decision is under appeal in a higher court.
- They ensure payment of the original judgment in the event of an unsuccessful appeal (or an amended judgment ordered by the appellate court.
- They ensure payment of costs assessed by the appellate court and any interest that accrues on the original judgment while the case is under appeal.
- They provide a source of funds for paying the original judgment promptly following an unsuccessful appeal.
- They deter defendants from filing frivolous appeals for the sole purpose of delaying payment of a judgment.
The vast majority of appeals fail. Presenting new evidence or challenging testimony given in the trial court are insufficient grounds for appeal. For an appeal to succeed, there must be proof of a procedural error during the original trial that compromised the rights of the defendant.
Who Needs Them?
Trial court judgments are automatically stayed for ten days once an appeal is filed. Beyond those ten days, execution of the judgment will proceed unless a Maryland appeal bond is posted.
Anyone filing an appeal of a decision by a Maryland trial court and requesting a stay of a monetary judgment beyond the initial ten days must provide the trial court with a Maryland appeal bond. It must be for 110% of the judgment amount plus anticipated court costs and interest that accrues while the case is under appeal.
The trial court (referred to as the “obligee” in the legally binding surety bond agreement) will determine the required bond amount for judgments involving tangible property, such as real estate.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
Because of the high probability of an unsuccessful appeal, Maryland appeal bonds are typically fully collateralized, which greatly reduces the risk to the bonding company (the “surety,” for short). If the appellant (known as the “principal” in the bond agreement) loses the appeal and does not make good on the judgment within a specified time, the surety will use the collateral to pay the judgment to the plaintiff. For entities with very strong corporate financials, the surety will consider reducing or even eliminating the collateral requirement in certain instances.
What Do They Cost?
Because Maryland appeal bonds are typically fully collateralized, the surety charges a relatively small premium of about 1-1.5%. Bonds for larger entities which are done with reduced/no collateral will come with a higher premium rate around 2-3%.
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Our surety bond professionals will get you the Maryland appeal bond you need at a competitive rate.