HB 3080: Court Bond – Dangerous Dogs
This bill will create procedures for declaring a dog to be dangerous. The owners of the dangerous dogs could dispute the designation in court. A $200 bond will be required in connection with the proceedings.
LB 441: Appeal Bonds
Exemption is provided through this for all appellants that are indigent from the appeal bond requirements of existing law or municipal court cases. To obtain the exemption an affidavit attesting to the financial condition of the appellant will be required.
The Uniform Trust Code will be adopted through this senate bill. A bond must be posted by the trustee to secure the performance of his and her duties. This will only be activated if the court requires it or if the terms of the trust required one. Under this bill the court will be authorized to determine the amount of the bond, its liabilities and whether sureties are necessary. The court has the power to modify or terminate a bond at any time. Also the liability of the trustee or any surety providing the bond for acts of omissions of the trustee would not be discharged or affected by the trustee’s resignation.
SB 411: Court Bond
This bond would be providing procedures for the seize of property that is involved with criminal proceedings. These proceedings would be involved with financial crime cases. The owner of a seized property would have the opportunity to post a bond to obtain the release of their property. The bond would be conditioned on compliance with the court’s final Judgment.
This bill will provide for an additional method for determine the limitation on the appeals bond required under existing law in medical malpractice suits. Under current law the bond amount is capped at $25 million for any civil action. The new bill would allow for the bond amount to be capped at the lesser of either the amount of the judgment, or the amount of the appellant’s medical malpractice insurance coverage. This is only applicable to the action sought against him or her.
SB 2627: Court Bond – Custody Cases
This bond would be required in child custody cases if the court determined there is a risk that a noncustodial parent would flee with the child. The surety bond needed to be posted would be in an amount determined by the court. This would be for the security of the child’s return from the noncustodial parent to the custodial parent at the end of any visitation period.
SB 541: Court Bond
Under this bill the creation of redevelopment commissions in certain counties in Indiana will be possible. This bill will allow for an economic development pilot program. These commissions must determine which areas of the county are eligible for redevelopment, and create a plan for these areas. Anyone who is affected by the redevelopment would eligible to file remonstrance with the commission as a part of the planning process. If the remonstrator is then aggrieved by the commission’s final decision for the economic development area they are then allowed to file an appeal in the circuit court. This redevelopment commission could petition to have the appeal dismissed. This may be possible unless the remonstrator files an appeal bond to secure the costs of the appeal and all damages should the commission win in the lawsuit.
For contractors and business owners in a wide range of industries, surety bonds are an unavoidable part of operating their organization. However, that doesn’t mean they are forced to take on high-cost bonds which can cost hundreds or thousands of dollars more than what is necessary. The key to securing low-rate surety bonds is being informed about the process and knowing what is taken into account when determining your cost. Here are a few things to be aware of before you approach a surety company looking for a bond:
1. Check your credit
The first thing any surety company will do when you walk through the door is run a credit check on you and/or your company. Just like having a good credit rating can get you lower interest rates on car loans, they can also get your company lower costs for bonds. Before applying for a surety bond, check your credit and make sure everything is correct and up-to-date. One or two bad marks can deliver a serious blow to your overall rating. Fortunately, reporting errors or mistakes can generally be cleared up with just a few phone calls.
2. Balance your books
A large part of bonding consideration, especially when it comes to contract bonds, lies in whether or not your company has the capital necessary to complete a job. Have your in-house accountant comb through your company’s financials to make sure you actually have sufficient funds to see the contract through. If necessary, free up capital by selling off investments to keep a majority of funds liquid and easily accessible. Following responsible accounting practices at all times will ensure that you are able to present an accurate picture of your company’s assets to a bonding company.
3. Toot your horn
Having a well-established network of references and contacts can go a long way to getting you a lower bond rate. The amount of experience a company has in the industry where they are seeking work weighs into their overall credibility and reliability to carry out the contract. To apply for a bond, ensure you have proof of previous work which has been completed satisfactorily.
4. Make your choice
Different bonds come with different rules and regulations associated with them. The sheer number of different bond types can be overwhelming, so consult a professional to ensure you are applying for the bond best suited to your company. In many industries there are well-established standards for the kind of bond necessary, but new business owners may need a unique bond specially-tailored for their operation.
5. Read your rules
Bonding guidelines can vary widely by state, but some basic online research should give you a good overview of what you are required to obtain. Unfortunately, you don’t get brownie points for securing a surety bond worth more than your state’s required minimum amount. Save yourself additional costs by knowing the exact amount of bonding you need to operate in your state and locality. You can find this information online or call your state’s licensing board for details.
SB 1212: Caps on Appeal Bonds
This would cap the appeal bond required to stay the execution of a judgment in any civil action. Under current law a bond is required to equal to the full amount of the judgment plus costs, interest and any damages related to the pending appeal. This bill will provide that the bond would have to be posted for the lesser of the following amounts: the total amount of damages awarded excluding punitive damages, $25 million or fifty percent of the appellant’s net worth. A large bond amount could infringe on the due process rights of appellants because of the fact that they might not be able to post a bond for the full amount. In these instances appellants could be forced into bankruptcy or to settle their case. This lower bond amount requirement would allow for defendants to appeal a decision without such concerns, according to the findings.
HB 804: Court Bond
If the value of a personal property or estate is expected to be at least $10,000 conservators for the estate must post a surety bond in that amount. Previous law provided for a bond to be posted when the proposed protected person petitioned the court to require one. This law applies to conservators appointed after August 1, 2009.
Today, a majority of surety bonds are purchased by principals through surety bond producers, also referred to as surety bond agents. This does not only pertain to contract bonds, but all other surety bonds to include the numerous commercial bonds available, as well as court bonds. Surety bond producers serve as middlemen between those in need of bonds, and the deep-pocketed surety bond and insurance companies. Top bond agents are knowledgeable about the surety bond industry, and the industries in which they provide bond service, such as the construction industry. Many work as part of bond agencies that focus on suretyship, but can also be a part of certain insurance agencies that have surety departments. The best, most professional surety bond producers have well-established relationships with multiple surety bond companies. This allows the agents to help find their customers (principals) the surety company that is the best fit for their particular needs.
When it comes to the construction business, surety bond producers not only help contractors obtain their required surety bonds, but they also can provide additional business advice, technical expertise, and managerial consulting. A good surety bond producer can become part of a contractor’s support network, providing invaluable bonding advice for the short and long term.
We recently posted an article on the two major categories of surety bonds: Contract Bonds and Commercial Bonds. However, another less common yet significant category of surety bonds are Court Bonds. While this category of bond does not make up as much of the surety bond market as the previously mentioned categories, it is important to understand what they are, and the primary types of surety bonds that fall under court bonds.
In a nutshell, court bonds are a form of surety bonds that are required in many court proceeding in order to allow litigants to engage in the requisite legal proceedings. They can ensure that a person has the necessary protection from possible loss that could come about as a result of courts outcome. Court bonds can also guarantee that a person assigned as a fiduciary carries out his/her duties in accordance with the terms of an agreement or the orders of the court.
Here are the most common types of Court Bonds:
- Appeal Bonds - Required by a court before any appeal is made.
- Guardianship Bonds - These types of bonds ensure that legal guardians of minors or incapacitated individuals will not misuse any funds that are supposed to utilized to support that individual. (also known as Custodian Bonds)
- Probate Bonds - Bonds that are required by the court to guarantee the proper distribution of assets by the executor of an estate whenever an person passes away or becomes incapacitate. (also referred to as Estate Bonds, Executor Bonds, and/or Fiduciary Bonds)