What you need to know about Counter Replevin Bonds

COUNTER REPLEVIN BONDS

W h a t Yo u N e e d To K n o w A b o u t C o u n t e r R e p l e v i n B o n d s .

“Simply put, a Counter Replevin Bond is a defendant’s counterpart to a plaintiff’s Replevin Bond.”

DEFINED. In a Replevin Bond, a plaintiff seeks to take physical possession of assets or property before the trial begins.

But a Counter Replevin Bond allows the

defendant to ask the court to be granted the right to take back possession of property taken or replevied by the

plaintiff.

This bond also provides protection to both the plaintiff and the defendant

pending the final resolution of the lawsuit.

DEFINED.

“The Counter Replevin Bond

safeguards the plaintiff during

the time the case is being litigated.�

While the accused will be allowed to retain possession of the property, he or she will be held responsible by the court to cover all costs and damages.

It also benefits the defendant because it allows them to retain control of the asset.

The defendant is obligated to compensate the plaintiff for all the costs and damages on the property should the court rule in the plaintiff’s favor. The defendant is mandated to release the property to the plaintiff in the same condition as when it was recovered.

PARTIES INVOLVED. Like all surety bonds, there are three parties involved in Counter Replevin Bonds:

PRINCIPAL 1

3

2

The defendant of the party seeking a counter replevin action to regain possession of a replevied property. The defendant guarantees to release the property if the case is ultimately ruled for the plaintiff.

SURETY

OBLIGEE

The court which requires the bond to benefit

The bonding company that underwrites and

the plaintiff. The obligee is also often called

issue the bond.

the beneficiary party.

WHEN TO SECURE THIS BOND Typically, a court may require a Counter Replevin Bond in civil cases involving possession of an

ASSET or PROPERTY

However, the amount of coverage in this type of bond is usually set

up to 1.5 times the

value of the asset or property in question. If the defendant fails to file a Counter Replevin Bond, the court will order the release of the property to the plaintiff after posting a Replevin Bond.

HOW MUCH IS THIS BOND? As a rule of thumb, bonds that are fully collateralized receive a premium of 1% of the

full bond amount. Bonds that are not fully collateralized will be more expensive.

IS COLLATERAL NEEDED? It depends but because of the significant risk faced by underwriters when issuing Counter Replevin Bond, underwriters often require collateral when writing counter

replevin bonds. After all, they share liability with the defendant for any deterioration or destruction of the property during litigation.

DOCUMENTS NEEDED. 1

Copy of Complaint

4

2

Copy of final Court Order that approves the bond

5

3

Completed Application

Financial Statement

(only necessary if you're attempting to get the bond approved without collateral)

Copy of final Court Order that approves the bond

SOURCE:

https://suretybondauthority.com/counter-replevin-bond/