New Hampshire Appeal Bonds
What is a New Hampshire Appeal Bond?
In New Hampshire, the procedural path to staying a judgment is unique compared to many other states. Under N.H. RSA 527:1, “no execution shall issue until the expiration of the appeal period”.
N.H. RSA 416:2 states if a bond is required by law, the bond must be issued by a surety company licensed to do business in the state to be deemed sufficient. If you are an attorney handling a client’s case in New Hampshire, here are the requirements for securing an appeal bond.
New Hampshire Revised Statutes § 527:1
*This does not constitute legal advice, please read our disclaimer.
Rule 7-A. Motion for Stay or for Remand
(1) A motion to stay an order or judgment of a lower tribunal shall not be filed in this court unless the movant has first unsuccessfully sought similar relief from the lower tribunal. This requirement may be waived by the court upon motion in extraordinary circumstances. Any motion to stay shall be accompanied by a copy of the request for similar relief filed with the lower tribunal, any objection filed thereto, and the lower tribunal’s order denying such relief. In addition, any motion to stay shall be accompanied by a copy of the order or judgment which the motion seeks to have stayed.
(2) A motion for remand or partial remand shall be accompanied by a copy of the pleading(s) that the movant intends to file with the lower tribunal if the motion is granted. Unless the court orders otherwise, the grant of a partial remand shall not stay the proceedings in this court.
*This does not constitute legal advice, please read our disclaimer.
Rule 43. Procedure After Trial
A motion to set aside a jury verdict shall be filed within 10 days after its rendition, and a motion to set aside any other verdict or decree shall be filed within 10 days from the date on the court’s written notice with respect to same, which shall be mailed by the court on the date of the notice. In each case, the motion shall fully state all reasons and arguments relied on.
*This does not constitute legal advice, please read our disclaimer.
New Hampshire Appeal Bonds Underwriting Requirements
Unlike many jurisdictions where appellants are required to post an appeal or supersedeas bond to stay enforcement of a judgment, New Hampshire grants an automatic stay for most money judgments. However, if your client does require an appeal bond, here are the underwriting requirements.
While appeal bonds are technically insurance products issued by surety companies, they function more like a financial guarantee whereby the surety is guaranteeing to pay the judgment to the appellee up to the bond amount if the judgment is not satisfied by the appellant. Unlike insurance, however, the appellant has to indemnify or repay the surety if the surety pays the judgment. Consequently, appeal bonds are generally considered an extension of credit and underwritten more like bank loans.
Considering that most appeals do not result in a reversal of the judgment or order, there is a strong likelihood that the surety providing the appeal bond will receive a claim. As a result of this high probability, surety companies generally require collateral for the full bond amount.
However, there are exceptions to the collateral requirement, such as if an appellant has a significant net worth and liquid assets relative to the bond amount. Publicly traded companies, banks, insurers, large private firms, and high-net-worth individuals may meet these requirements, and not need to post collateral. (Find out if your client may qualify for an appeal bond without collateral, here.)
Common forms of collateral include:
- Cash: This is the quickest and simplest way to secure an appeal bond.
- Bank Letters of Credit: These are a written guarantee from a bank to the surety that promises payment of the required amount upon demand by the surety.
- Real Estate: This could include both residential properties (single-family and multi-family) and commercial properties (office, industrial, or retail).
- Marketable Securities: Non-retirement brokerage accounts holding stocks and bonds that are pledged to a surety company.
FAQs
How Much Does a New Hampshire Appeal Bond Cost?
A New Hampshire appeal bond cost is determined by the premium rate set by a surety company, which is generally between 0.3% to 4% depending on several factors such as:
- The size of the appeal bond
- The type of collateral provided, if required
- The financial strength of the appellant relative to the bond amount, if the bond is being considered without collateral
The bond premium is charged yearly until the surety’s liability under the bond is fully released. If the bond is exonerated midterm after the first year’s renewal, the client will receive a prorated return premium from the surety company.
What are the Best Practices for Securing an Appeal Bond through an Admitted Surety Insurer?
Securing a New Hampshire appeal bond can be complex. However, following best practices can help ensure a smooth experience. Here’s what we recommend:
- Contact a surety bond agent early. This advantage helps the client explore all options and ensure the appeal bond can be filed without delay.
- Ensure attorney involvement. Attorneys are critical in confirming the bond amount based on the jurisdiction’s requirements and parts of the judgment being bonded, updating the surety company on the deadline to file the bond, and reviewing the bond form to ensure it conforms with local rules.
- You can choose the right surety bond agent by interviewing multiple professionals and choosing one with a strong track record of experience and who specializes in New Hampshire appeal bonds.
For more insights, check out our guide: “The Biggest Mistakes Made with Appeal Bonds.“
Why Choose CSBA for Your Client's Appeal Bonds in New Hampshire?
When the stakes are high, your clients need a professional surety agent they can count on to stay enforcers of judgment. At CSBA, we have decades of experience in appeal bonds, and we can guide your clients through the complex process.
A Legacy of Expertise & Trust
CSBA has helped appellants secure appeal bonds from various industries involving almost every type of case since 1984. So whether your client is an individual needing a $1 million bond or a publicly traded company with a billion dollar judgment, we have the experience and resources to help.
Exclusive Surety Insurer Access & Creative Solutions
At CSBA, we have access to over 30 top-rated surety insurers. Several of these are exclusive or semi-exclusive insurers that most agents don’t have. This unique access and programs allow us to find creative solutions tailored to each client’s circumstances.
How Long Does It Take to Secure an Appeal Bond in New Hampshire?
If collateral isn’t required to secure an appeal bond, a New Hampshire appeal bond can be approved and issued in as little as 24 hours in the most straightforward cases.
If collateral is required, the process can vary significantly and mainly depends on the type of collateral being used. For example, cash collateral can be posted within a few days, while real estate can take 30-60 days, depending on the type and number of properties being posted.
Steps to Apply for a Supersedeas Bond
- Contact an Appeal Bond Specialist – Consult with a surety expert to review your client’s bond amount, financial qualifications, and go over available collateral options. We recommend that the client contact CSBA early so that we can prevent setbacks, and ensure that all necessary steps are completed on time.
- Explore All Available Options – The surety agent will discuss customized solutions based on your client’s financial situation. If your client may qualify for an appeal bond without full collateral, we will go over the underwriting requirements and answer any questions.
- Submit the following documents – To begin the underwriting process, the following documents are required:
- Application
- Court complaint
- Judgment
- Notice of appeal
- CPA-audited year-end financial statement (if the client is a candidate for an appeal bond without full collateral)
- Secure Approval & Finalize the Bond – Once the underwriting documents have been received, your surety agent will review them internally and:
- Work to obtain competitive terms from a surety insurer.
- Outline the appeal bond approval for your client.
- Guide the client in the posting of the collateral, if required.
Get Your Client’s New Hampshire Appeal Bond Quote Today
Deadlines for filing an appeal bond are normally very tight. Appellants and their attorneys will need a responsive and knowledgeable surety agent to navigate the process.
At CSBA, we make the appeal bond process smooth so you can focus on your case. Contact our appeal bond experts today to take the next step toward securing your client’s appeal bond.