Appeal Bond

DEFINITION of 'Appeal Bond'

An amount of money placed in holding while the appeal is being decided. An appeal bond is supplied by the appellant (plaintiff) who is appealing the court's judgment, and is usually in the amount of the original judgment (though it could be more). Referred to as a safety net bond which helps protect the court from frivolous appeals that cost the court time and money, an appeal is always posted by the losing party in a court case.

In an appeal, a court case is brought before a higher court. The higher court will only review issues objected to in the lower court during the initial trial, not new evidence. The bond is required by the Federal Rule of Appellate Procedure 7.

BREAKING DOWN 'Appeal Bond'

A losing defendant needs this to secure his right to appeal and stay the judgment. It is required by both federal and state court. The process of appealing involves posting a full judgment in addition to posting interest. An appeal bond should be discussed early in a case, since the cost of this bond can be high and defendants are required to post this bond a few weeks after the judgment.


Also referred to as a supersedeas bond.

RELATED TERMS
  1. Appellate Courts

    The part of the judicial system that is responsible for hearing ...
  2. Default Judgment

    A binding judgment issued by a court in favor of the plaintiff ...
  3. De Novo Judicial Review

    A standard of review that does not place weight on the previous ...
  4. Bankruptcy Court

    What is bankruptcy court?
  5. Tax Court

    A specialized court of law that hears and adjudicates tax-related ...
  6. Deficiency Judgment

    A judgment made by a court against a debtor indicating that the ...
Related Articles
  1. Markets

    Big Tobacco Gets Another Win at the Supreme Court

    Big Tobacco just got another piece of good news from the Supreme Court: The high court refused to hear an appeal from Illinois smokers over the industry's alleged deceptive advertising of "light" ...
  2. Insights

    Oracle Battles Google for 9.3B in Damages

    Oracle and Google head to court to decide whether or not APIs are covered under fair use in copyright.
  3. Insights

    Bank of America Wins $1.27 Billion 'Hustle' Case (BAC)

    Monday a federal appeals court overturned a $1.27 billion penalty verdict in relation to mortgage fraud.
  4. Investing

    Supreme Court Won't Hear Altria's Damages Appeal

    The U.S. Supreme Court declined to hear an appeal by Altria's (NYSE: MO) Philip Morris USA unit over a $25 million penalty it was assessed by a Portland, Oregon, jury in a case involving a smoker's ...
  5. Personal Finance

    How To Choose The Right Bond For You

    Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy.
  6. Retirement

    Should I Invest in Bonds After I Retire?

    Yes, retirees should invest in bonds, but remember that not all bonds are safe investments. Seek the help of a financial advisor.
  7. Personal Finance

    The Court Cases That Have Shaped US Sales Tax Law: How They Apply Today

    Explore two Supreme Court cases that established legal precedent for the treatment and apportionment of sales taxes at the state level.
  8. ETFs & Mutual Funds

    Key Strategies To Avoid Negative Bond Returns

    It is difficult to make money in bonds in a rising rate environment, but there are ways to avoid losses.
  9. Managing Wealth

    Cash Vs. Bonds: What to Pick in Times of Uncertainty

    Learn about the benefits and drawbacks of holding cash versus investing in bonds to ensure you make the right decision about how to best safeguard your money.
  10. Markets

    5 Fixed Income Plays After the Fed Rate Increase

    Learn about various ways that you can adjust a fixed income investment portfolio to mitigate the potential negative effect of rising interest rates.
RELATED FAQS
  1. How do we get more information about a testamentary trust?

    There are 17 beneficiaries on a $900K testamentary trust. The bank and our advisor tell us it's in the closing ... Read Answer >>
  2. How does face value differ from the price of a bond?

    Discover how bonds are traded as investment securities and understand the various terms used in bond trading, including par ... Read Answer >>
  3. How do I get information about my bankruptcy case?

    Learn about different places to search when seeking information about an individual's bankruptcy. Learn about Public Access ... Read Answer >>
  4. Can mutual funds only hold bonds?

    Find out which mutual funds include only bonds in their portfolios. Learn why some funds invest in different types of bonds ... Read Answer >>
  5. What determines the price of a bond in the open market?

    Learn more about some of the factors that influence the valuation of bonds on the open market, and why bond prices and yields ... Read Answer >>
  6. Does bankruptcy information go on the public record?

    Learn about the public record and whether or not bankruptcy documents are included. Explore situations where certain bankruptcy ... Read Answer >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center