Collateral Options

When collateral is required to obtain an appeal bond, there are four options that sureties will consider.


Cash is one of the quickest and least expensive forms of collateral that appellants can use. It is wire transferred to the surety company into an account that they hold during the course of the appeal. Some sureties will pay interest on the deposit, and depending on the size of the bond, the interest may even equal to or exceed the bond premium. When using cash, we have several programs that enable clients to earn interest, which can offset or even exceed the premium paid for the bond.

For more information on using cash collateral, visit our article: Using Cash Collateral.

To get your estimated bond premium cost using cash collateral, use our calculator below.

Bank Letters of Credit

A letter of credit is issued by a bank to the surety company and states that the bank will make funds available up to the bond amount to be drawn upon. As a result of it being highly liquid, this type of collateral is viewed similar to cash by surety companies, and as a result, surety companies usually charge lower premium rates. Banks typically charge the client a fee to provide letters of credit, but it is generally less costly for clients than obtaining loans. This option is typically best suited companies and high net worth individuals that have strong existing banking relationships.

For more information on how to secure an appeal bond using a bank letter of credit, read our article: How Letters of Credit Work to Secure Appeal Bonds

To get your estimated bond premium cost using bank letters of credit collateral, use our calculator below.

Real Estate

Real estate can be a very important option for appellants that have a lot of their equity in real property. Surety companies will consider residential and commercial property. Because of the illiquid nature, sureties charge a much higher premium for appeal bonds, and the process can take anywhere from 30 to 60 day depending on the circumstances.

To learn more about whether real estate is the right option for you, read our article Using Real Estate to Secure Appeal Bonds 

To get your estimated bond premium cost using real estate collateral, use our calculator below.

Marketable Securities

Marketable securities are non-retirement brokerage accounts holding stocks and bonds that are pledged to a surety company. Using this approach, clients benefit from not liquidating their investments, which allows them to continue earning returns and avoid any tax consequences from the sale of the assets.

To learn more details about how pledging a marketable securities account works, read our article: Securing an Appeal Bond Using a Stock or Bond Portfolio

To get your estimated bond premium cost using marketable securities collateral, use our calculator below.

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