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SB-206

Court

Court Application SB-206

When Needed

Bonds filed in court litigation, permitting a party to a court action to pursue his remedy at law. They are always prepared by the attorney for the applicant.

Desirability of Class

Most bonds filed in litigation proceedings are financial guarantees and call for very careful underwriting.

Bonds Given By Plaintiffs, such as Attachment, Replevin, Garnishment, Indemnity to Sheriff or Marshal, are less hazardous than those given by defendants; and where the applicant for the bond (the plaintiff in the litigation) is financially responsible and where the litigation grows out of a transaction connected with his normal business, such as the repossessing of property sold on the installment plan, bonds may usually be written in reasonable amounts without collateral. Bonds required in cases involving marital difficulties or purely personal differences not connected with the business of the applicant should be avoided.

Bonds Given By Defendants, such as Appeal, Counter-Replevin, Release of Attachment, Stay of Execution, Release of Garnishment, Release of Mechanic's Lien, etc.., are extremely hazardous and are rarely written without collateral. Exception is made only where the applicant is an old established concern in unquestionable strong financial condition, and where the amount of the bond in relation to the applicant's net worth is comparatively small.

Cost Bonds, filed by plaintiffs to guarantee payment of the court costs, are usually required in modest amounts and may be written for financially responsible applicants. Care should be taken to make sure the bond obligates the Company for court costs only.

Removal Bonds, supporting the petition of a defendant to remove the case to a different court, usually carry the same liability as a cost bond and may be underwritten in the same manner.

Bail Bonds. We do not write bail or appearance bonds in criminal proceedings.

Sources of Business

Attorneys