Counter Replevin Bond
When two parties go to court over a contested piece of property, both parties have the means to claim ownership. If you hope to take possession of property involved in a lawsuit before that litigation concludes, you may need a counter replevin bond. Keep reading to learn the ins and outs of this unique judicial bond.
What is a Counter Replevin Bond?
To start, it helps to understand how a replevin bond works. Before a litigation begins, the plaintiff obtains a replevin bond in exchange for permission to take possession of the contested property. Later, if the plaintiff loses the suit and refuses to return the property, the defendant may file a claim against the bond seeking financial compensation. With a counter replevin bond, the situation is opposite: the defendant obtains the bond, takes the property, and pays for any claims.
What documents are required to obtain a Counter Replevin Surety Bond?
Bond applicants will need to complete the standard bond application and turn over copies of the complaint, the final court order, a collateral agreement if necessary, and a financial statement when requested by the bond company.
Do you need collateral to obtain a Counter Replevin Surety Bond?
That's up to the bond company to decide. Counter replevin bonds create high risks of claims for the surety backing the bond, so they often require collateral. Find out if you need to put up collateral by applying for a bond with Viking Bond Service.
How does a Counter Replevin Surety Bond work?
They work by providing the plaintiff a way to seek financial compensation for property the defendant refuses to return in defiance of a court order. However, they also work on behalf of defendants by granting them the right to possess property before the courts rule on ownership of said property. Finally, by holding defendants financially responsible, counter replevin bonds help prevent frivolous lawsuits.
Who should get a Counter Replevin Surety Bond?
The courts decide if and when these bonds are necessary. Since the litigation cannot proceed until you have a bond, you will know if the bond requirement exists. In that case, find a surety company like Viking Bond Service to partner with immediately so that you can get your property back and proceed with the lawsuit.
Who are the parties involved in a Counter Replevin Surety Bond?
Surety bonds involve three equal parties:
- Principal - The bonded party and the defendant in the litigation. A principal must pay to get a bond and pay for any valid claims the obligee files against it.
- Obligee - The bond beneficiary and the plaintiff in the litigation. An obligee has the right to file claims against the bond when property isn't returned as mandated.
- Surety - The bond company and the intermediary between the principal and the obligee. The obligee guarantees payment for valid claims, but even if they settle a principal's debt, that person must pay the surety back with interest and fees.
How much does a Counter Replevin Bond cost?
Typically, counter replevin bonds are worth 1.5 times the value of the contested property. When the bond is fully collateralized, the bond premium costs around 1% - 2% of the total value. Without collateral, premium cost closer to 5%. The exact amount depends on the applicant's credit score and the details of the lawsuit. To get more insights into the counter replevin bond cost, request a quote here.
How are claims handled for Counter Replevin Surety Bond?
When the obligee files a claim, the surety investigates whether it's valid. If the claim proves true and the principal refuses to return property, the surety steps in to resolve the claim. When the latter happens, the principal must then pay back the surety, likely with extra costs added.
How to apply for a Counter Replevin Surety Bond?
More important than the application itself is finding the right surety company to work with. Look for one like Viking Bond Service that understands the intricacies of judicial bonds and operates in all 50 states. After selecting a surety, you will submit the documents outlined above and wait for underwriters to quote you a price for the bond premium. Once you pay and supply collateral (if necessary), you receive an official document to supply the courts.
Viking Bond Service - your surety bond provider
Important as bonds may be, they're not your top priority. So work with a surety company that makes it easy to obtain bonds at a fair price. Viking Bond Service has the experience, expertise, and resources you need to simplify bonding from beginning to end. If you have questions or need any assistance, complete the contact form on this page or call us at 888-278-7389.
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