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. 

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Using cash as collateral for an appeal bond carries a couple of advantages, such as some sureties paying interest on the cash deposit.
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Marketable Securities ​

Marketable Securities ​

This type of collateral includes stocks and bonds held in non-retirement accounts, as well as mutual funds, exchange-traded funds, and money market funds.
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Bank Letters of Credit

Bank Letters of Credit

A letter of credit is essentially a promise by a bank to pay a beneficiary, in this case the surety company, a specified amount upon demand.
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Real Estate

Real Estate

Real estate is also an option, but there are only two sureties that currently consider taking real estate as collateral for appeal bonds.

To read more about the specific details of each form of collateral, visit our Collateral Options Page

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