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 your Oregon court bond needs.
What Are They?
Oregon courts order bonds in two broad categories—appeal bonds and probate bonds—with multiple types of bonds in each category:
Appeal Bonds
An appeal bond is typically a requirement of the original trial court when a judgment ordered by the court is being appealed to a higher court. The vast majority of appeals fail, so it’s very likely that the trial court’s judgment will eventually be executed. The only way to stay (postpone the execution of) the trial court’s judgment is for the appellant to purchase a type of appeal bond known as a “supersedeas” bond.
An appeal bond is meant to ensure that the appellant will comply with the original judgment if it’s upheld by the appellate court with or without any modification. An appeal bond also protects the opposing party against unwarranted financial harm. The need to purchase one helps deter frivolous appeals meant only to delay the execution of a judgment.
Probate Bonds
A probate bond is a requirement of an Oregon probate court judge when appointing someone to serve as:
- The executor or administrator of an estate.
- The guardian of a minor.
- The conservator of an incapacitated adult.
It guarantees that the individual will carry out the responsibilities of the role in a completely legal and ethical manner.
Any unlawful or unethical act that results in financial harm to a minor, ward, beneficiary, or other party whose assets are being managed by the bonded individual can result in a claim against the probate bond. The bond must be fully collateralized to ensure the prompt payment of valid claims.
Who Needs Them?
Anyone filing an appeal of an Oregon court’s decision will be informed of the specific bonding requirements:
- For an appeal bond, the bond amount typically must be a bit greater than the amount of a monetary award. If the award was for real property, the court will establish the required bond amount, also known as the bond’s “penal sum.”
- For a probate bond, the required bond amount generally is at least 100% of the value of the estate under the fiduciary’s management.
Appeal bonds are typically fully collateralized to facilitate quick payment of a valid claim without undue risk to the surety bond company. For principals with very strong financials, this collateral requirement may be reduced or even eliminated. Probate bonds are typically written based on credit score. Once the probate bond amount gets higher, personal/company financials may be required by the surety.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
The three parties to the surety bond agreement for an Oregon court bond, a legally binding contract, are:
- The obligee—the Oregon court requiring the bond.
- The principal—the appellant or fiduciary required to purchase the bond.
- The surety—the bonding company underwriting and approving the bond.
Following an unsuccessful appeal, the original trial court will seize the collateral posted for the appeal bond if the principal doesn’t make good on the judgment in a given amount of time. That collateral is then used to pay the judgment.
In the case of a probate bond, a valid claim for a loss stemming from the principal’s misconduct (for example, embezzlement or poor decision-making) can result in the need for the surety to make a claim payment. The surety will then look towards the principal for repayment under the signed indemnity agreement.
What Do They Cost?
Full collateralization of an Oregon appeal bond drastically reduces the degree of risk to the surety, which means the premium the principal pays can be as low 1-1.5% percent of the bond’s penal sum. Probate bonds generally range from 1-2% depending mostly on personal credit. Applicants with a lower credit score may pay a higher amount.
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Our surety bond professionals will get you the Oregon court bond you need at a competitive rate.