Court bonds are those bonds prescribed by statute and relate to the courts. They are further broken down into judicial bonds and fiduciary bonds. Judicial bonds arise out of litigation and are posted by parties seeking court remedies or defending against legal actions seeking court remedies. Fiduciary, or probate, bonds are filed in probate courts and courts that exercise equitable jurisdiction; they guarantee that applicants whom such courts have entrusted with the care of others property will perform their specified duties faithfully.
Judicial Bonds: Release of Lien Bond
Release of Lien Bond – a bond that is to help provide an inexpensive method for material suppliers/contractors to secure the value that has been added to the property owed to them. The bond amount is generally issued at a percentage over the lien amount and is determined by the court. Typically collateral will be required to secure the obligation.