A Counter Replevin Bond is a defendant’s counterpart to a plaintiff’s Replevin Bond.
Simply put, 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.
In civil court cases, a court may require a defendant to post a Counter Replevin Bond, but with assurance, he or she will surrender the asset or property, or its equivalent value, to the plaintiff, should the court decide for the plaintiff.
What documents are required to obtain a Counter Replevin Bond?
1) Copy of Complaint
2) Copy of final Court Order that approves the bond.
3) Completed Application
4) Financial Statement (only necessary if you're attempting to get the bond approved without collateral).
5) If collateral is required, then a Collateral Agreement.
Do I need collateral to obtain a Counter Replevin Bond?
It depends. The bottom line is that the surety will evaluate your financial capacity to pay the full amount of the bond. The surety bond company will typically review your credit report and financial statements.
How Much Does a Counter Replevin Bond cost to purchase?
As a rule of thumb, bonds that are fully collateralized receive a premium of 1% of the full bond amount. Bonds are not fully collateralized will be more expensive.
To get a full quotation and understanding of Replevin Bond, call Surety Bond Authority at 800-333-7800, and our friendly and competent staff will be happy to assist you. You can also email us to get a free quote.
When Will You Need a Counter Replevin 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.
A Counter Replevin Bond provides protection to both the plaintiff and the defendant pending the final resolution of the lawsuit. But 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.
The Counter Replevin Bond safeguards the plaintiff during the time the case is being litigated. Additionally, 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.
The surety firm which underwrites the Counter Replevin Bond is equally liable for any damage, deterioration or destruction of the recovered property during litigation.
Parties Involved in Counter Replevin Bond
Like all surety bonds, there are three parties involved in Counter Replevin Bonds:
Principal – 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.
Obligee – The court which requires the bond to benefit the plaintiff. The obligee is also often called the beneficiary party.
Surety – The bonding company that underwrites and issue the bond.
Example of a Counter Replevin Bond
Anna and Carlos have decided to terminate their marriage of 10 years through a divorce. However, when Carlos moved out of their apartment, he was unable to get his electronic gadgets, particularly his 50-inch Smart TV. But Anna refused to give him the TV insisting that she owns it.
Before filing a lawsuit before a court, Carlos obtained a Replevin Bond from a surety that allowed him to take possession of the TV. Upon releasing the TV to Carlos, Anna then obtained a Counter Replevin Bond from a surety company that allowed him to regain possession of the TV.
Sureties Often Require Collateral in Counter Replevin Bond
Surety firms are exposed to real monetary damage under these bonds for safekeeping. With a Counter Replevin Bond, the property in question becomes the property of the defendant and can deal with it in any way he or she sees fit. In essence, the defendant can dispose of the property and can even cause damage to it that could cause its value to decline other than due to wear and tear.
Similar to attachment bonds, perishable goods or properties that require special handling pose higher risks and hazards for the surety firm. Moreover, a defendant can list the reposed property as part of his or her general asset if the defendant filed for bankruptcy. As a general rule, general assets are subject to the claims of other creditors in bankruptcy proceedings.
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. Often, we can get Counter Replacing Bonds approved without collateral. However, these situations usually involve a slightly higher premium.
About Surety Bond Authority
Surety Bond Authority is founded by its CEO Greg Rynerson, who has more than 25 years of experience in the surety bond and insurance industries. Greg has executed bonds at the state and federal level for his clients throughout his professional life.
Surety Bond Authority offers a full-service surety underwriting. The company has built itself on a foundation of integrity and is a reliable partner for all your surety bond needs. Surety Bond Authority prides itself on its superior customer service and reasonable rates.