New York Appeal Bonds
Surety Bond Professionals is a family-owned and operated bonding 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 of your New York appeal bond needs.
What Are They?
A New York appeal bond serves a very special purpose—to pause the execution of a judgment while the defendant appeals the court’s ruling and the award of damages to the plaintiff. Defendants who have lost a case in a New York court cannot appeal that decision until they have purchased an appeal bond to show the court that they are not merely trying to delay paying a judgment, but have reasonable grounds for a successful appeal.
A New York appeal bond also serves as the defendant’s guarantee to make good on the judgment if the appeal turns out to be unsuccessful. In New York, appeal bonds must be in an amount that will cover the judgment. Most sureties require these bonds to be fully collateralized to provide funds for immediate payment to the plaintiff if the appellate court rules against the defendant and upholds the judgment.
Who Needs Them?
Anyone appealing a New York court’s ruling in a civil matter is required to purchase an appeal bond in an amount that is equal to—or in some cases more than—the amount of the judgment under appeal. Be aware that only court-ordered judgments, not negotiated settlements, can be appealed.
The defendant will be unable to complete the process of filing an appeal until the necessary New York appeal bond has been purchased and submitted to the Clerk of the Court in which the case was originally decided. The bond must be fully collateralized, typically in the form of a cashier’s check or irrevocable letter of credit.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
Once the defendant has purchased and submitted an appeal bond, it must remain in place until the court decides on the appeal. During that time, there will be no collection activity on the judgment awarding damages to the plaintiff. That could be quite a while—months or even years.
If the appellate court rules against the defendant, the judgment becomes due immediately. On top of the original judgment, the defendant may also be liable for interest that has accrued since the original judgment was ordered, plus certain expenses and legal fees. The surety company will use the collateral for the bond to pay the judgment to the plaintiff. If there are funds left over after the damages are awarded to the plaintiff and any court costs have been paid, that sum is returned to the defendant.
What Do They Cost?
Collateralization of a New York appeal bond means that the defendant’s personal credit history is not a big factor in the surety bond’s determination of the premium rate the defendant will pay for the bond. In most cases, that premium rate will be 2% or less on a fully collateralized basis. For bonds that are able to be obtained with partial or no collateral, the premium may range from 1.5% to 3%.
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Our surety bond professionals will get you the New York appeal bond you need at a competitive rate.