In the District Court of the State of Maryland, under Rule 3-115(c), an Attached Bond is to protect the party being attached. It is to provide protection for the satisfaction of all costs and damages that may be awarded to the defendant or a claimant because of attachment. In this scenario, you have a plaintiff or a petitioner who is seeking an attachment proceeding before the entry of judgment. To attach that property, the judge generally requires a surety bond or undertaking. The court needs to set the bond amount. The bond should be for damages that could be sustained. In the case of fraud, it is unlikely any damages will be sustained.
I always suggest you start the application process for the bond before you go into court to make the motion. The reason you want to do that before you go into court is that once the motion for the attachment is granted, orders may not go into effect until the bond is filed. If that’s the case, property can be moved, hidden, or sent out of the jurisdiction. Another reason is that you will not want to spend money motioning the court if your client cannot obtain the bond. There are some cases where the petitioner/plaintiff lacks assets to support the attachment. This is something you want to know before you appear in court.
If you’re trying to recover property from a defendant, it’s best to have everything lined up so that you can quickly move for the attachment, and get the bond on file so the sheriff can seize the property immediately. Otherwise, the party being attached can transfer either the property or funds outside of the jurisdiction. My office always suggests having everything lined up in advance.
The bond itself is an extension of credit by the surety company issuing the bond. It provides the attached party with protection. This means that the bond is bound to the obligee which in this case will be the party being attached. Since the bond is an extension of credit, you or your client will have to provide some financial disclosure to apply for the bond without collateral.
Once a bond is filed, it cannot be canceled without a court order, final entry of a judgment in the matter against the party being attached, or a release from the attached party.
Give me a call or send me an email today to discuss your matter.
Neil Pedersen
PEDERSEN & SONS SURETY BOND AGENCY, INC.
15 Maiden Lane Suite #800
New York, NY, 10038
212-227-7277
neil@courtbondnow.com
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