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Iowa Supersedeas Bonds

What is an Iowa Supersedeas Bond?

A supersedeas bond in Iowa permits a judgment debtor (typically the defendant) to delay enforcement of a monetary judgment while pursuing an appeal. If the appeal is unsuccessful, the judgment creditor (usually the plaintiff) may file a claim against the bond to recover the judgment amount from the surety in the event the judgment debtor fails to pay.

Absent a supersedeas bond, a judgment creditor in Iowa may generally begin enforcing the judgment after a specified statutory period, even if the appeal is ongoing.

Iowa Supersedeas Bond Amount Requirements

Per Iowa Rules of Appellate Procedure 6.601(2)(b), “the bond must not exceed 110% of the amount of the money judgment, unless the district court otherwise sets the bond at a higher amount pursuant to Iowa Code section 625A.9(2)(a). However, pursuant to Iowa Code section 625A.9(2)(b), the maximum amount for a supersedeas bond is set at $100 million.

 
6.601(1) Requirement of bond and effect on judgment. Except upon supreme court order or upon district court order entered pursuant to rule 6.601(3), no appeal stays proceedings under a judgment or order unless the appellant executes a bond with sureties, filed with and approved by the district court or the clerk of the district court where the judgment or order was entered. Initiation of appeal will not stay, vacate, or affect the judgment or order appealed from; but the district court or the clerk of the district court will issue a written order requiring the appellee and all others to stay proceedings under it or such part of it as has been appealed from when the supersedeas bond is filed and approved.
 
6.601(2) Condition and amount of bond. a. The conditions of such bond will be that the appellant must satisfy and perform the judgment if affirmed, or any judgment or order, not exceeding in amount or value the obligation of the judgment or order appealed from, which an appellate court may render or order to be rendered by the district court, and also all costs and damages adjudged against the appellant on the appeal, and all rents from or damage to property during the pendency of the appeal of which the appellee is deprived by reason of the appeal. b. If the judgment or order appealed from is for money, the bond must not exceed 110% of the amount of the money judgment, unless the district court otherwise sets the bond at a higher amount pursuant to Iowa Code section 625A.9(2)(a). The bond must not exceed the maximum amount set forth in Iowa Code section 625A.9(2)(b). In all other cases, the bond must be an amount sufficient to hold the appellee harmless from the consequences of the appeal, but in no event less than $1000.
 
6.601(3) Bond by State or political subdivision. Upon motion and for good cause shown, the district court may stay all proceedings under the order or judgment being appealed and permit the State or any of its political subdivisions to appeal a judgment or order to the supreme court without the filing of a supersedeas bond.
 
6.601(4) Form of bond. A supersedeas bond secured by cash, a certificate of deposit, or government security in a form and in an amount approved by the clerk of the district court may be filed in lieu of other form of bond. If a cash bond is filed, the cash must be deposited at interest with the interest earnings being paid into the general fund of the State in accordance with Iowa Code section 602.8103(5). The cash bond will be disbursed pursuant to court order upon the district court’s receipt of the procedendo.
 
6.601(5) Child custody. A supersedeas bond filed pursuant to this rule does not stay an order, judgment, decree, or portion thereof affecting the custody of a child. Requests for stays involving child custody are governed by rule 6.604.
 

Source

This does not constitute legal advice, please read our disclaimer.

 
1. The taking of the appeal from part of a judgment or order, and the filing of a bond, does not stay execution as to that part of the judgment or order not appealed from.
 
2. a. (1) Except as provided in paragraph “b”, if the judgment or order appealed from is for money, such bond shall not exceed one hundred ten percent of the amount of the money judgment.
 
(2) The court may set a bond in an amount in excess of one hundred ten percent of the amount of the money judgment upon making specific findings justifying such an amount, and in doing so, shall consider, but shall not be limited to consideration of, the following criteria:
(a) The availability and cost of the bond or other form of adequate security.
(b) The assets of the judgment debtor and of the judgment debtor’s insurer or indemnitor, if any.
(c) The potential adverse effects of the bond on the judgment debtor, including, but not limited to, the potential adverse effects on the judgment debtor’s employees, financial stability, and business operations.
(d) The potential adverse effects of the bond on the judgment creditor and third parties, including public entities.
(e) In a class action suit, the adequacy of the bond to compensate all members of the class.
b. Notwithstanding paragraph “a”, in no case shall a bond exceed one hundred million dollars, regardless of the value of the money judgment. This limitation shall not apply in cases where the court finds that the defendant intentionally dissipated the defendant’s assets outside the ordinary course of business for the purpose of evading payment of the judgment.
 
3. Upon motion and for good cause shown, the district court may stay all proceedings under the order or judgment being appealed and permit the state or any of its political subdivisions to appeal a judgment or order to the supreme court without the filing of a supersedeas bond.
 

Source

This does not constitute legal advice, please read our disclaimer.

Attorney sitting down with client.

Who Needs Supersedeas Bonds in Iowa State Cases?

In Iowa courts, Supersedeas bonds are typically required to stay the enforcement of a money judgment while an appellant seeks to overturn a judgment or order. Except for judgments against most public entities, most monetary judgments require a supersedeas bond to prevent execution of the judgment during the appeals process.

Here are a few common cases that require supersedeas bonds in Iowa:

  • Contract Disputes
  • Class Action Lawsuits
  • Personal Injury Lawsuits
  • Property Disagreements
  • Business Litigation
  • Employment Law Disputes
  • Product Liability Claims
  • Intellectual Property Conflicts with Monetary Awards
  • Toxic Tort Litigation
  • Domestic Relations Cases involving property division, alimony, or child support (click here to read our article on Appeal Bonds in Family Law Cases)
"I have known Dan Huckabay for many years. He is one of the most knowledgeable appeal bond brokers in the business. His understanding of the requirements for appeal bonds, knowledge of the surety insurer market and his experience working with individual surety insurers make him an excellent choice when you need to bond an appeal."
David AxelradHorvitz & Levy LLP
David Axelrad.
"Dan and Arturo have been very helpful to me and my clients on more than one occasion. They have been so easy to work with. They can explain to the client about what kind of security is needed, what type of information the client needs to supply and how the process works. They try to get everything in place with a minimum of hassle, and they always follow up. I would not call anyone else for a supersedeas bond."
Julia F. PenderyCowles & Thompson
Julia Pendery.
"Court Surety Bond Agency is my one-stop shop for appellate bonds. There is much more to the appellate bonding process than you might think, and the professionals at CSBA are experts in this area. If you need a supersedeas bond, CSBA will walk you and your client through the process, and help you find the best option for any particular situation. Highly recommended!"
Duane A. DaikerShumaker
Duane A. Daiker
"We refer our clients to CSBA with confidence and without hesitation. Whether the client is a sophisticated entity or an individual involved in litigation for the first time, the CSBA team is ready, willing, and able to pursue all available options to secure a bond and ensure that the bond is in place when needed, all while explaining the options and requirements in an understandable way."
Jason AndersonCarney Badley Spellman
Jason Anderson
"I have known Dan Huckabay for many years. He is one of the most knowledgeable appeal bond brokers in the business. His understanding of the requirements for appeal bonds, knowledge of the surety insurer market and his experience working with individual surety insurers make him an excellent choice when you need to bond an appeal."
David AxelradHorvitz & Levy LLP
David Axelrad.
"Dan and Arturo have been very helpful to me and my clients on more than one occasion. They have been so easy to work with. They can explain to the client about what kind of security is needed, what type of information the client needs to supply and how the process works. They try to get everything in place with a minimum of hassle, and they always follow up. I would not call anyone else for a supersedeas bond."
Julia F. PenderyCowles & Thompson
Julia Pendery.
"Court Surety Bond Agency is my one-stop shop for appellate bonds. There is much more to the appellate bonding process than you might think, and the professionals at CSBA are experts in this area. If you need a supersedeas bond, CSBA will walk you and your client through the process, and help you find the best option for any particular situation. Highly recommended!"
Duane A. DaikerShumaker
Duane A. Daiker
"We refer our clients to CSBA with confidence and without hesitation. Whether the client is a sophisticated entity or an individual involved in litigation for the first time, the CSBA team is ready, willing, and able to pursue all available options to secure a bond and ensure that the bond is in place when needed, all while explaining the options and requirements in an understandable way."
Jason AndersonCarney Badley Spellman
Jason Anderson

Iowa Supersedeas Bonds Underwriting Requirements

Supersedeas bonds are technically an insurance product issued primarily by corporate surety companies. However, these bonds are more like an extension of credit and are therefore underwritten similar to bank loans.

Supersedeas bonds function more like financial guarantees, where the surety company guarantees to pay the judgment to the appellee up to the bond amount if the appellant doesn’t satisfy the judgment should it be affirmed on appeal.

Unlike insurance products, the appellant has to repay the surety company if the surety ends up satisfying the judgment. Because most civil appeals result in the judgment being affirmed, there is a high probability that the surety company backing the Supersedeas bond will receive a claim. Given the likelihood of a claim, surety companies will often require collateral for the full bond amount.

Common forms of collateral include:

  • Cash: This is generally the most streamlined collateral option for clients when dealing with a tight deadline.
  • Bank Letters of Credit: A formal guarantee from a bank to a surety ensuring the availability of funds up to a certain dollar amount upon demand.
  • Real Estate: Acceptable collateral may include residential properties (single-family or multi-family) and commercial properties (office, industrial, or retail). However, due to the homestead laws in Iowa, the property cannot be the client’s primary residence.
  • Marketable Securities: Non-retirement brokerage accounts holding stocks and bonds can be pledged as collateral, offering a creative option for securing an Supersedeas bond without having to liquidate assets.
Visit our Collateral Options Page For More Information on Each Form of Collateral

There are exceptions to the collateral requirement, and those are generally when the appellants are publicly traded companies, banks, insurers, large private firms, municipalities, or high-net-worth individuals who meet particular criteria, such as if the appellant has significant net worth and liquid assets relative to the bond amount. See our article, “Qualifying for an Appeal Bond Without Collateral,” for additional content.

FAQs

An Iowa Supersedeas 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 Supersedeas 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.

Securing a Supersedeas bond in Iowa can be a complex process. Following best practices and having an experienced appellate bond specialist working with your client can help simplify this process and ensure a smooth and efficient experience:

  1. Contact a surety bond agent early. This advantage helps the client explore all options and ensure they can file the Supersedeas bond without delay.
  2. 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 State or local rules.
  3. Choose the right surety bond agent. You and your client 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 Iowa Supersedeas bonds.  

Read our guide, “The Biggest Mistakes Made with Appeal Bonds,” to learn more.

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 supersedeas bonds, and we can guide your clients through the complex process. 

A Legacy of Expertise & Trust

CSBA has helped appellants secure supersedeas 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.

The time frame to secure an Iowa supersedeas bond will depend on whether or not collateral is required. 

If collateral isn’t required, the bond can be approved and issued within  24 hours in the most straightforward cases. 

If the surety does require collateral, the type of collateral can affect the duration of securing a supersedeas bond. Cash collateral can be secured in a few days, while real estate collateral can generally take 30-60 days, depending on the property type and number of properties being posted. 

Steps to Apply for a Supersedeas Bond

  1. Contact a supersedeas bond specialist to review your client’s bond requirement and start the process. 
  2. The bond agent will discuss the various options with you and your client, and address any underwriting questions you or the client may have.
  3. Submit the following documents:
  4. The surety agent will outline the supersedeas bond approval, and work closely with you and your client to efficiently finalize the bond.

Get Your Client’s Iowa Supersedeas
Bond Quote Today

Deadlines for filing a supersedeas 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 supersedeas bond process smooth so you can focus on your case. Contact our supersedeas bond experts today to take the next step toward securing your client’s supersedeas bond.

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