Understanding the Importance of Attachment Bonds by Neil Pedersen

Since prejudgment attachment cases often involve fraud — like when a company is defrauded out of money or property and needs to immediately have that money or property turned over to a third party who is the sheriff of the county where the property is located — an attachment proceeding is a necessity in situations like these. An undertaking or bond is a requirement according to New York Civil Practice Law and Rules (CPLR) for attachment proceedings.

Under CPLR 6201 through 6226, when a client is looking to obtain an attachment which prevents a party or entity from disposing of assets or transferring funds, they can make a motion to the court for an Order of Attachment. The judge will issue an Order of Attachment provided the party seeking it files an undertaking or bond in a sum certain which the judge will set. This means that the judge would set at least $500 for an undertaking or surety bond. The bond or undertaking protects the party being attached in the event that the attachment was granted improperly from damages caused, reasonable attorney’s fees, and the sheriff’s allowable fees. The damages would have to be proven in court and awarded by the court.

The advantage of securing an attachment proceeding is to have the sheriff take possession of the assets prior to a court deciding that the party who was granted the attachment whether or not they were entitled to the assets. This prevents the party from being attached from being able to transfer money out of the country, transfer money to somebody else, or dispose of an asset.

Generally, those who have committed fraud are looking to further that fraud by removing the assets to a place that the party seeking the attachment would not be able to recover the funds from, such as an overseas bank account. Securing an attachment proceeding prevents that from happening. Call us to have the bond arranged prior to seeking the attachment proceeding. 

If you need assistance or have questions, contact us today at 212-227-7277

Neil Pedersen
PEDERSEN & SONS SURETY BOND AGENCY, INC.
15 Maiden Lane Suite #800
New York, NY 10038
212-227-7277
800-720-7277
neil@courtbondnow.com

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