In New Jersey, any entity affected in any manner, whether directly or indirectly, by a lien under NJSA 30: 4D-7.8, or a certificate of debt filed prior to a final agency adjudication, in accordance with this section, can file a bond in the Superior Court of the County where this action is pending in order to secure the debt while awaiting a court resolution on the matter.
If a New Jersey state agency determines that you owe fines, you can file a bond with the Superior Court to secure those fines pending the final determination of whether or not those fines are legitimately owed. In order to immediately discharge the debt or lien, you can either deposit money with the Court or provide a bond with sufficient sureties to cover said debt. Under the proper notice of satisfaction of the lien or certificate of debt filed with the County Clerk registered as deeds, the bond can be filed. This bond guarantees the debt determined by the New Jersey agency, pending a trial on whether or not the debt is actually owed.
In order for a surety company to underwrite a bond pursuant to this security, the client has two options, as I discussed previously. The first option is to provide a financial statement for the surety to underwrite the matter and the second is to deposit collateral with the surety. In certain situations, the collateral can be cash, a letter of credit, publicly traded securities that are non-retirement accounts, or potentially, property secured by a lien. If it’s property, however, the surety wants proof of a source of liquidity to pay the debt, if it is ultimately determined that the debt is owed.
The benefit of bonding this type of debt is that the bond secures the debt which would otherwise prevent you from having clear title when encumbering a property. The debt could also have a negative effect on your credit if it is not bonded.
PEDERSEN & SONS SURETY BOND AGENCY, INC.
15 Maiden Lane Suite #800
New York, NY 10038
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