When a money judgment is entered against an entity in Pennsylvania’s State Court, an appropriate security in the amount of 120% of the judgment is required in addition to the filing of the Notice of Appeal in order to stay the execution of a judgment. A supersedeas surety bond would suffice. In order to obtain the supersedeas bond, the surety would review the financial statements of the entities applying for the bond, copies of the judgment and notice of appeal are needed.
Ultimately the stay pending Appeal is granted upon the filing of both the bond and the Notice of Appeal. The cost of the bond and the potential collateral that could be required is based on the clients financial wherewithal. If the entity is a publicly traded company or an insurance company, our firm generally would not require financial statements since the financials are public information and readily accessible via internet searches.
However, if the client is not publicly traded and does not have financials readily available to the public, our firm would require copies of the audited financial statements to determine if we could issue the bond, either based off the entity’s indemnity or with only partial collateral.
In the event that we cannot issue the bond based off indemnity only, we would require collateral, i.e. cash, a letter of credit securities, or real estate. Regarding the latter, the surety generally wants to determine that the property is unencumbered and that the client has sufficient liquid assets to pay the judgment if it is affirmed on appeal; the surety is not looking to take property without verification of liquidity.
If you need assistance or have questions, contact us today at 212-227-7277.
Contact us with your questions today.
PEDERSEN & SONS SURETY BOND AGENCY, INC.
15 Maiden Lane Suite #800
New York, NY 10038
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