Appeal Bond

Posted in Finance, Accounting and Economics Terms, Total Reads: 322
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Definition: Appeal Bond

It is also called Supersedeas bond. When the defendant loses the case and decides to request the case to be reviewed by a higher court, an appeal bond is required by a lower court. By adhering to this bond, the defendant guarantees that in case he/she loses the appeal, the original judgment by the lower court will be paid by him.


The defendant doesn’t need to pay the money until he/she exhaust the appeal. It ensures the full amount of the judgment is paid and he also pays interest and the additional expenses.


In the higher court, no new evidence is presented, it would only review the matters objected in the lower court. The plaintiff who can seize the defendant’s property in case he doesn’t post for an appeal bond in the court within two weeks after the lower court passes its judgment. This bond is required by the defendant to execute his right to appeal and stay the judgment. It is also a mechanism to protect the court from trivial appeals that could cost the court its time and money.

 

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