Preliminary Injunction Bonds
What is a preliminary Injunction Bond?
A preliminary injunction bond is generally required to be posted by the plaintiff in a court case when a plaintiff wants to prevent the other party (the defendant) from a certain action.
This type of bond indemnifies the defendant against loss if it is determined that the injunction should not have been granted. The bond amount required varies from case to case and is set by the court.
How to Apply for a Preliminary Injunction Bond
The process for obtaining a preliminary injunction bond is fairly streamlined, and we just need to obtain the following from the plaintiff:
- An Application
- Court Complaint
- Court Order outlining bond requirement
Approval for bonds under $25,000.00 are generally based on the applicant’s personal and/or business credit. For bonds over that amount, sureties will often times require financial statements from the applicant. If the applicant does not financial qualify for the bond, the surety may require collateral as a condition for approval.
When Collateral is Required
For those situations where collateral is required, clients have four options for the type of collateral they can post.