What is a Replevin Bond?
The replevin bond is a type of court bond. It is usually requested by a court when someone files a replevin suit, also known as “claim and delivery", to reclaim property from another person.
Why do plaintiffs need a surety bond?
When a person files a suit against another to reclaim property they claim belongs rightfully to them, the court may order the claimant to obtain a replevin bond.
This is so, because in replevin cases the court may require defendants to return property before the suit is completed.
The bond then serves to guarantee that if the suit is lost by the plaintiff, they will return any property they have reclaimed to the defendant. Unlike other surety bonds, this bond guarantees the restitution of the actual property rather than financial compensation for losses or damages.
If you've never had to obtain a surety bond before, you might want to know more about how they work. See our detailed ‘What is a surety bond' guide for a full explanation!
See the next sections for more information about the cost of this bond, and how to get yours.
If you have been ordered to get this type of bond and want to consult a surety expert about what the bond is about and how you can apply, call us at 866.450.3412 anytime!
What Is The Cost of Getting a Replevin Bond?
The surety bond premium, i.e. the cost of your bond, is equal to a percentage of its full amount.
In the case of the replevin bond, the amount is determined on the basis of the property which the plaintiff wants to reclaim.
It is the court that determines the exact amount of your bond but often the amount is equal to twice the value of the property.
Once you know the amount of the bond you need, the surety will offer you a rate at which you can get bonded, based on the following factors.
Factors that determine your bond premium
Your personal credit score is the primary factor that influences the cost of your bond.
The higher your score, the more likely the surety will consider it that you will not default on your bond agreement, and the lower your bond cost will be.
Your personal and business financial statements, as well as any fixed and liquid assets you have, may also be considered by the surety when it sets your bond rate.
Typically, for applicants with good credit, the cost of a replevin bond can be equal to roughly 1%-2% of the total bond amount.
What Can Cause a Bond Claim?
If a court allows a plaintiff to seize the property they claim to own but then the final rule is in favor of the defendant, the plaintiff must return the property. If the plaintiff does not return the property, the defendant can file a claim against their bond.
The surety must then investigate the issue, and determine the appropriate amount of compensation to extend to the defendant. Compensation may be equal to as much as the full amount of the bond.
If compensation is extended to the claimant, the bonded plaintiff must reimburse the surety. In other words, if the plaintiff does not comply with the court ruling and a claim is filed, they are still liable to somehow compensate the defendant.
How Can I Get a Replevin Bond?
To get this type of bond, follow the steps to complete the application form. Several other documents will also be required. Once you provide us with the forms, we will offer you a quote and more details about completing the bonding process.
For any questions about this bond, call us at 866.450.3412!