Oklahoma Supersedeas Bond
What is an Oklahoma
Supersedeas Bond?
A supersedeas bond in Oklahoma allows a party the judgment debtor or appellant) to stay the enforcement of a judgment during post-trial motions and while an appeal is pending.
These bonds are underwritten by surety companies and are usually arranged through licensed surety agents working closely with the appellant and their attorneys.
A supersedeas bond issued by a surety company serves to assure both the court and the judgment creditor that, if the judgment, decree or final order is affirmed on appeal, the appellant will satisfy the judgment should the appellate court affirm the lower court’s decision.
Oklahoma Supersedeas Bond Amount Requirements
According to Oklahoma Statute 12-990.4, the bond amount for a money judgment in Oklahoma shall be for double the amount of the judgment, decree or final order, unless the bond is executed or guaranteed by a surety. The bond shall be for the amount of the judgment, decree or order including costs and interest on appeal where it is executed or guaranteed by an entity with suretyship powers as provided by the laws of Oklahoma.
Stat 12-990.4 Stay of Enforcement - Judgments, Decrees or Final Orders
“(a) Supersedeas Bonds and Other Security.
(1) Generally; Exceptions.
(A) A supersedeas bond is a bond filed in the superior court, as provided by this Rule and by applicable statutes, which stays enforcement of, or execution on, a judgment so that an appeal may be pursued. As used in this Rule, the term “bond” or “supersedeas bond” also includes other types of security as ordered by the superior court in lieu of a supersedeas bond. A party may file a supersedeas bond before or after filing a notice of appeal.
(B) A party may not obtain a supersedeas bond to stay an award of custody of children or the payment of spousal maintenance or child support.
(C) A judgment against the State, or an agency or a political subdivision of the State, is stayed as provided by Rule 62(g) of the Arizona Rules of Civil Procedure.
(2) Setting the Bond by Stipulation or Motion; Stay; Other Orders. The amount of the bond may be determined by stipulation or motion. Filing a motion in the superior court for a supersedeas bond under this Rule temporarily stays enforcement of, or execution on, the judgment, with the same effect as described in Rule 7(b), until the superior court has either denied the motion or set the bond amount and provided appropriate time for posting the bond. However, until a bond is posted, a party may record a judgment. Unless the motion is uncontested, on request of any party, the superior court must hold a hearing on a motion to set bond. The superior court may enter any further order, in lieu of or in addition to the bond, which may be appropriate to preserve the status quo or the effectiveness of the judgment.
(3) Setting the Amount of the Bond Ex Parte. The superior court may determine the amount of the bond ex parte if the requesting party submits a motion with an affidavit:
(A) stating that the party has made a good faith attempt to obtain a stipulation from the other parties; and
(B) describing the party’s efforts, if any, to give notice, or the reasons why it is not feasible under the circumstances to give the other parties an opportunity to be heard before the setting of bond.
(4) Amount of the Bond–Monetary Judgment. Except for family court judgments governed by Rule 7(a)(7), and subject to Rule 7(a)(9), if the judgment includes a monetary award, the amount of the bond relating to the monetary award must be the lowest of the following:
(A) the total amount of damages, costs, attorney’s fees, and prejudgment interest included in the judgment when entered, excluding punitive damages;
(B) fifty percent of the net worth of the party seeking the stay; or
(C) twenty-five million dollars.
The party requesting the stay must prove net worth by a preponderance of the evidence.[…]”
*This does not constitute legal advice, please read our disclaimer.
Who Needs Supersedeas Bonds in Oklahoma State Cases?
Aside from judgments against most public entities, all judgment debtors are required to post a supersedeas bond or other security to prevent judgment execution during the appeal.
Here are some of the cases that may require supersedeas bonds in Oklahoma courts:
- 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)
Oklahoma Supersedeas Bonds Underwriting Requirements
While supersedeas 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, supersedeas 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 supersedeas 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 a supersedeas 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 an Oklahoma Supersedeas Bond Cost?
An Oklahoma 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.
Best Practices for Posting an Oklahoma Supersedeas Bond Through a Corporate Surety Company
Supersedeas bonds can take anywhere from a couple of days to several weeks to put in place, depending on the client’s circumstances. Here are the best practices to help ensure a smooth process in securing a supersedeas bond for your client:
- Engage a Supersedeas Bond Expert Early – It is never too early to start discussions with a surety agent. When possible, reach out before the judgment has been entered because when it comes to supersedeas bonds, “more time” equals “more options” to allow the surety agent to find the best solution for the client’s unique circumstances.
- Ensure Attorney Collaboration – It is best when the attorney is able to confirm the bond amount based on jurisdictional requirements, outline which parts of the judgment need to be bonded, keep the surety company informed of filing deadlines, and review the bond form for compliance with State or local court rules.
- Choose a Surety Partner with Proven Expertise – Not all surety agencies are the same. Selecting a provider with a proven strong track record in issuing Oklahoma supersedeas bonds ensures your client receives specialized guidance and a smooth approval process. At CSBA, we bring decades of experience exclusively handling civil litigation bonds nationwide.
See our guide, “The Biggest Mistakes Made with Appeal Bonds,” to learn more.
Why Choose CSBA for Your Client's Oklahoma Supersedeas Bonds?
If your client needs to stay enforcement of an Oklahoma judgment, they need a professional surety agent who can use a wide variety of collateral options and who has access to the right surety companies.
A Legacy of Expertise & Trust
Since 1984, CSBA has provided first-class service through our expertise in the appellate process, underwriting requirements, and the time frames required to secure a bond before the filing deadline. With our combined experience of 110 years, our surety bond professionals anticipate potential setbacks and take proactive steps to tailor options unique to your client’s financial situation.
Exclusive Surety Insurer Access & Creative Solutions
At CSBA, we leverage our extensive network of over 35 surety insurers for clients seeking to secure an Oklahoma supersedeas bond. Our long-standing relationships with top-tier surety companies allow us to handle bond amounts of all sizes, whether it’s a $1 million supersedeas bond for a private individual or a $1 billion supersedeas bond for a publicly traded corporation.
With access to exclusive and semi-exclusive sureties we offer:
- Creative collateral solutions tailored to each client’s financial profile.
- Expedited underwriting to ensure a streamlined bonding process.
- Comprehensive support and guidance to attorneys and their clients throughout the supersedeas bond process.
Our specialized expertise and direct surety relationships set us apart, making CSBA the trusted choice to attorneys and their clients for supersedeas bonds in Oklahoma cases.
How Long Does It Take to Secure a Supersedeas Bond in Oklahoma?
If collateral isn’t required to secure a supersedeas bond, an Oklahoma supersedeas 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
1. Contact a Supersedeas 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 us early so that we can prevent setbacks and ensure that all necessary steps are completed on time.
2. Explore All Available Options
The surety agency will discuss customized solutions based on your client’s financial situation. If your client may qualify for a supersedeas bond without full collateral, we will go over the underwriting requirements and answer any questions.
3. Submit Required Documentation
To begin the underwriting process, the following documents are required:
- Supersedeas bond 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)
4. Secure Approval & Finalize the Bond
Once the surety bond application is reviewed, your surety agent will:
- Obtain competitive bond terms from our network of 35 surety insurers.
- Outline the supersedeas bond approval for your client.
- Assist in securing the collateral, if required.
Get a Free Quote for Your Client's Supersedeas Bond in Oklahoma Today
Filing deadlines for supersedeas bonds are often strict and time-sensitive. At CSBA, we specialize in simplifying the underwriting process, ensuring a smooth experience so you and your client can focus on the case at hand. Our team of dedicated surety experts is ready to assist you—contact us today to take the next step in securing your client’s supersedeas bond in Oklahoma.