Appeal Surety Bonds

Appeal the judgment. Keep the collection on hold.

An appeal bond stays enforcement of a judgment while your appeal is heard. These are among the harder bonds in surety, and BF Bond has been placing them since 1949, working directly with appellate counsel.

The Basics

What is an appeal bond?

An appeal bond, also called a supersedeas bond, is a court bond filed by a party appealing a money judgment. Filing an appeal does not by itself stop the winning party from collecting. The bond is what buys the stay: it guarantees that if the judgment is affirmed, the appellee will be paid the judgment plus the interest and costs that accumulate while the appeal runs.

The appellee is protected, and that is the point. Without the bond, an appellant could use the appeal period to move assets or simply run out the clock, and the judgment creditor would be left chasing an empty shell. With the bond in place, the court is satisfied that the money will be there either way, so it lets enforcement wait.

These bonds are underwritten very differently from license bonds. The amount is large by definition, since it exceeds the judgment, and the surety is guaranteeing a sum that a court has already decided you owe. Carriers therefore look hard at the appellant financial position and, in the great majority of cases, require collateral. That is the reality worth knowing before you plan around one.

Appeal bonds at a glance

Bond amount

Set by statute or court rule, commonly the judgment plus a margin for interest and costs. Several states cap the maximum

Premium

An annual rate applied to the bond amount, typically around one percent, running until the appeal concludes

Collateral

Usually required, often as an irrevocable letter of credit or cash held by the surety

Term

Remains in force until the appellate court rules and the judgment is satisfied or reversed

Also called

Supersedeas bond, stay bond, appellate bond, cost bond

Who Requires One

When an appeal bond comes up

Any time a losing party wants to appeal a money judgment and stop collection in the meantime.

Civil Money Judgments

Commercial disputes, contract actions, and personal injury judgments where the appellant needs enforcement stayed pending review.

Corporate Appellants

Businesses appealing substantial judgments, where balance sheet strength can sometimes reduce the collateral required.

Individual Appellants

Individuals appealing a judgment, where collateral is almost always required regardless of the merits of the appeal.

Appellate Counsel

Attorneys arranging the bond on behalf of a client, often on a short deadline set by the notice of appeal.

How It Works

How we place an appeal bond

Call or apply

Because these move fast and are rarely routine, calling us first is often quicker. Your attorney can start it instead.

Send the judgment

We require the judgment, the notice of appeal, and the bond amount the court has set or the statute requires.

Structure collateral

We work out an acceptable collateral arrangement, most often a letter of credit, and place it with a carrier.

File with the court

The executed bond goes out on the correct court form so it can be filed and the stay obtained without objection.

Questions

Appeal bond FAQs

How much does an appeal bond cost?

The premium is an annual rate on the bond amount, commonly around one percent, and it continues for as long as the appeal is pending. Because appeals can run more than a year, budget for renewal premium rather than a single payment. The premium is separate from the collateral, which is not a cost but funds you or your indemnitor have to make available.

Why is collateral required?

Because a court has already determined that you owe the money. The surety is not evaluating whether a loss might occur at some future point, as it would on a license bond. It is guaranteeing a sum a judge has already awarded against you, with the only uncertainty being whether the appellate court reverses. Carriers price that reality by securing themselves, usually with an irrevocable letter of credit or cash.

What is the difference between an appeal bond and a supersedeas bond?

In practice, none. The terms are used interchangeably in most jurisdictions for the bond that stays enforcement of a money judgment pending appeal. Some courts use supersedeas for the stay bond specifically and appeal or cost bond for a smaller bond covering only appellate costs. Send us the court order or the rule cited and we will identify which one you actually require.

How much will the bond be written for?

More than the judgment. Rules generally require the judgment plus an allowance for the interest and costs that accrue while the appeal is pending, which is why the figure lands above the number in the judgment. A number of states have enacted caps limiting the maximum bond amount, so the applicable rule matters. Your appellate counsel will normally identify the required figure.

How quickly can this be arranged?

Faster than most people expect if the collateral is ready, and slowly if it is not. The underwriting itself can move within days. Arranging a letter of credit through your bank is usually the longest step. If you have a deadline running from the notice of appeal, call us at (800) 921-1008 immediately rather than waiting until the collateral is in place.

What happens when the appeal is decided?

If the judgment is reversed, the obligation falls away and the bond is exonerated and released once the court confirms it. If it is affirmed, the judgment becomes payable, and if you do not pay it the appellee can claim against the bond. The surety pays and then draws on your collateral. Either way, tell us when the decision comes down so we can close the bond and stop the renewal premium.

Keep Exploring

More Court bonds

Deadline running on your notice of appeal?

Call (800) 921-1008 or start the application. We can work directly with your appellate counsel.