Los Angeles, CA, July 21, 2020 – Surety Bond Authority is proud to announce that it is issuing injunction bonds in all 50 states starting today. Injunction bonds join the growing list of surety bonds the company has been writing since 1971.
An injunction bond is a type of surety bond that protects the party being restrained. If a court later finds that party was wrongfully enjoined, the bond covers the costs and damages the order caused them. Injunctions come in three forms: a Temporary Restraining Order (TRO), a Preliminary Injunction, and a Permanent Injunction.
In most cases a court will require an injunction bond before granting a temporary restraining order or preliminary injunction. Judges have discretion to set the amount, and in limited situations to reduce or waive it. Government applicants are generally exempt. A permanent injunction, issued after a full hearing, does not normally carry a bond requirement.
Expert Insight: We share the details of our injunction bond offering and how it can support your legal and business needs.
An injunction bond is obtained by the plaintiff and goes through a thorough underwriting process. The plaintiff submits information showing financial strength, credit history, and business or employment background.
Surety Bond Authority has created an easier and safer surety bond application process. “A lot of people are very wary about the safety and security of online transactions. Because of this, we have created a more secure way of submitting information needed to issue a bond. Most of the information provided to us is sensitive in nature. We want our clients to know that they can trust us with such information all the time,” says Greg Rynerson, CPCU, CEO of Surety Bond Authority.
The penal amount of an injunction bond is determined by the court, which takes into account potential damages, legal fees, and other charges. Because an injunction bond is posted by the party seeking relief, it is a plaintiff bond. For a qualified applicant, plaintiff bonds run approximately 2 to 3 percent of the bond amount. Premiums are paid annually and in full at issuance.
“Plaintiff injunction and TRO bonds can often be approved with no collateral at all for a qualified client. Defendant bonds are a different situation and require full collateral. We tell people up front which category they are in so there are no surprises,” Rynerson concludes.
Attorneys handling matters in federal court can read more about the security requirement in our guide to Rule 65(c) injunction bonds. For questions about an existing bond, see when an injunction bond is released.
About Surety Bond Authority
Surety Bond Authority has been writing surety bonds since 1971, over 50 years in business. The company is licensed in all 50 states and is one of the most trusted surety bond providers in the country. Call 800-333-7800 or contact us to get started.
