A supersedeas bond in New Jersey, also known as an appeal bond, is an extension of credit on behalf of the judgment debtor to the judgment creditor. In theory, a non-party could appeal the decision and want a stay on behalf of another entity. The bond is bound to the judgment creditor or the party that is the beneficiary of the judgment. A surety company looks at financials or takes collateral. In exchange for guaranteeing the payment of the judgment pending appeal, the surety requires an indemnity agreement to be executed. The bond principal or the party obtaining the bond also pays an annual premium.

In New Jersey, Rule 2:9-6 grants the state pending appeal. The bond must be approved by the court or the agency that takes the appeal. The appellant can motion the court for a lower bond amount, but that’s rarely granted.

The bond is conditioned on the satisfaction of the judgment in full, together with interest and trial costs. To satisfy in full such modification of the judgment with interest, trial costs, and damage, the Appellant Court may judge means that the bond has to guarantee the underlying judgment, ongoing interest, and costs of appeal.

Generally, my clients set the bond at 115% of the judgment. One of the best practices I always recommend for bonding is to have your client pre-approved for the bond. So, if a judgment is expected to be entered in a week, ten days from now, or whenever, have your client obtain the bond before the entry of the judgment so they can be ready to get the bond immediately to avoid having the judgment entered against them. In cases that require collateral, some collateral takes time to pledge or obtain. The more time that someone has to obtain a bond, the better.

My name is Neil Pedersen of Pedersen & Sons Surety Bond Agency. If you would like to discuss any bonding situation, please call me.

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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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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