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.

Investopedia explains '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.


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