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 Texas court bond needs.
What Are They?
There are two broad categories of surety bonds that can be required by courts in the state of Texas:
Judicial Bonds
Plaintiffs and defendants involved in civil proceedings may be required to purchase certain surety bonds to ensure that they will abide by the decision of the court. For example, a plaintiff may need to obtain a replevin bond to protect the defendant against loss if the plaintiff’s seizure of the defendant’s property is found by the court to be unwarranted. Or, a defendant requesting the stay of a judgment imposed by the court pending the outcome of an appeal may be required to provide a supersedeas/appeal bond guaranteeing payment of the judgment if the appeal is unsuccessful.
Fiduciary (Probate) Bonds
A person appointed by a probate court to serve as an executor, administrator, trustee of a decedent’s estate, guardian of a minor, or custodian of an incapacitated adult may be required to purchase a fiduciary bond (also known as a probate bond). This type of bond ensures that an individual entrusted with the management or distribution of assets belonging to someone else executes their fiduciary responsibilities in a lawful and ethical manner.
Who Needs Them?
When a court case involves contested property or a judgment for damages, chances are that a judicial bond may be required. In fact, because of the slim chance of success in an appellate court, a supersedeas bond (also known as an appeal bond or defendant’s bond) is required from anyone filing an appeal. In general, if a plaintiff or defendant could suffer financial harm as a result of an action initiated by the opposing party that could be denied or reversed by the court, the court is likely to require a judicial bond.
Fiduciary bonds are required for much the same reason—because of the potential for financial harm to a decedent’s heirs, a minor, or incapacitated adult incapable of managing their own finances. In an ideal world, anyone entrusted with fiduciary responsibilities would carry them out faithfully, but the potential for fiduciary malfeasance or negligence makes bonding necessary.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
A Texas court bond serves as the bonded individual’s guarantee to abide by certain legal requirements, whether that is the payment of a judgment for damages or the proper distribution of an estate’s assets. Failing to meet those requirements can result in an injured party filing a claim against the court bond.
What Do They Cost?
Surety bond companies often require Texas judicial bonds (appeal) to be fully collateralized, which minimizes the risk they assume in issuing a bond. The collateral can be used to pay the claim, including any court costs and accrued interest, so the premium charged by the surety bond agency is only a small percentage of the required bond amount. That percentage, the premium rate, depends largely on the bond applicant’s personal credit score and financial standing.
The cost of a fiduciary bond typically ranges from 0.5% to 2% for principals with good credit. An applicant with bad credit may pay a higher bond premium.
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Our surety bond professionals will get you the Texas court bond you need at a competitive rate.