Appeals move on tight rails. You have a notice of appeal filed, a stay clock running, and a judgment that grows with post‑judgment interest every day. The supersedeas bond sits at the center of that machinery. When it is approved on time, your client’s assets stay protected while the appellate issues get sorted. When it is delayed, sheriffs show up, bank accounts get levied, and leverage evaporates in a heartbeat. After years working with surety underwriters, trial counsel, and court clerks, I can tell you most holdups trace back to the same handful of preventable mistakes.
This guide walks through where delays originate, how underwriters actually think about risk, and what you can do in the first 72 hours after judgment to keep the bond path clear. I will also flag state‑specific traps, what to do when collateral is messy, and how to use interim stays without losing your footing.
What a supersedeas bond really does, and why the clock is unforgiving
A supersedeas bond, sometimes called an appeal bond, guarantees payment of the judgment, interest, and certain costs if the appellant loses the appeal. The bond is filed with the trial court to stay enforcement. Each jurisdiction sets its own requirements. Many require 100 to 125 percent of the judgment to cover interest and costs. Some cap the bond amount for very large verdicts. Several states and federal circuits require approval of the surety, the form, and sometimes the surety’s financial strength rating.
The timing is not flexible. In a typical state court, the bond must be approved and filed within a short window after entry of judgment or denial of post‑trial motions. That window can be ten, fourteen, or thirty days, often with modest room for an interim stay. Courts treat the approval as a ministerial act once the submission is complete, but clerks will not move without every box checked. The surety will not issue without underwriting satisfied. These are parallel, not sequential, processes. If you run them end‑to‑end, you will run out of runway.
Where delay typically starts
Most bond delays begin well before anyone calls a surety broker. By the time a verdict lands, parties often have an inaccurate picture of the final bond amount, no plan for collateral, and a letter of credit that will not pass surety or court review. Working back from dozens of emergency filings, five issues show up over and over.
First, the bond amount is miscalculated, usually because counsel relies on the jury’s net verdict without adding taxable costs, attorneys’ fees awarded post‑trial, or the correct rate of post‑judgment interest. Second, the principal’s financial package is incomplete or stale, so underwriting stalls. Third, the surety form on the court’s website is outdated or modified in a way the clerk will not accept. Fourth, collateral is assumed to be available, then turns out to be restricted, cross‑collateralized, or subject to lender consent. Fifth, corporate authority documents are missing, and no one with actual signing authority is on deck to execute the bond form before the deadline.
These are not theoretical snags. I have watched bonds sit on underwriters’ desks for two days because the most recent audited financials were 18 months old, and the company’s quarterly statements were management prepared with no footnotes. I have seen a bond kicked back at 4:15 p.m. on filing day because the clerk required an original power of attorney stapled behind the bond, not a PDF printout, and the runner had already left.
The court’s checklist, the surety’s checklist, and why you must satisfy both
Treat bond approval as two interlocking checklists. The court needs jurisdictional compliance: correct bond amount calculation, proper form, signatures, and a surety licensed in that court’s jurisdiction with an acceptable rating. The surety needs risk comfort: the principal’s ability to indemnify and, if necessary, liquid collateral that can be applied promptly if the appeal is lost. You do not want to learn the court demands 125 percent while the surety has underwritten 110 percent, or that the surety requires a letter of credit while the court will not accept an LOI in lieu of a bond.
On the court side, find the rule that governs and read the whole thing, including cross‑references. In Texas, the supersedeas bond amount often equals compensatory damages plus interest and costs, and exemplary damages are not included. In California, amounts can turn on the specific monetary and nonmonetary elements of the judgment. Federal Rule of Civil Procedure 62 leaves much to the district court’s discretion, but most judges ask for security equivalent to the judgment plus post‑judgment interest and costs. Across jurisdictions, small details vary: some courts require sworn affidavits on calculations, some require judicial approval by order, and some leave approval to the clerk.
On the surety side, underwriters focus on: the principal’s balance sheet strength, liquidity, trends in profitability, exposure to other contingent liabilities, and whether collateral is clean and controllable. They also study the appeal’s posture as a tie‑breaker, not as a primary credit factor. A meritorious appeal helps on the margins, but sureties underwrite to repayment certainty, not to litigation optimism.
Preparing your file in the first 72 hours after judgment
The best antidote to delay is a complete package at the outset. When counsel involves a surety broker early and presents a professional file, underwriters react faster and ask fewer follow‑ups. This is one of those areas where speed is earned by preparation, not by escalation.
The core package typically includes audited financial statements for the most recent two fiscal years, interim financials no older than 90 days, a detailed schedule of debt and contingent liabilities, organizational structure, ownership information, and a draft of the judgment with any post‑trial fee or cost awards. Add a calculation sheet for the bond amount that shows interest math using the correct statutory rate and compounding method. If you will post collateral, describe the collateral and attach evidence that you control it.
If the principal is a closely held entity without recent audits, expect the surety to ask for tax returns, CPA‑prepared statements, and possibly personal indemnities from owners. That is not a slight. It is the only way an underwriter can get comfortable with repayment risk when GAAP audits are not available.
When a lender is in the picture, brace for coordination. Most credit facilities restrict additional liens and pledges. If you propose to give the surety a security interest, get the lender’s written consent on that specific collateral. If you prefer a standby letter of credit, start that conversation immediately, because banks move on their own time and will insist on their standard SBLC forms. Your ability to revise those forms is limited. The surety’s required language is also limited. The earlier you reconcile the two, the more likely you can avoid a three‑way standoff on deadline day.
Collateral choices that speed approval, and ones that slow it to a crawl
Cash and clean standby letters of credit are the gold standard for speed. The surety can issue almost immediately once paperwork and indemnity are executed, because the underwriter’s exposure is fully collateralized. SBLCs require specific terms: typically, they must be irrevocable, callable at sight, governed by ISP98 or UCP600, issued by a bank acceptable to the surety, and have a validity period that comfortably exceeds the expected appeal duration. Sureties usually insist on automatic evergreen extensions with a 60 to 90 day non‑renewal notice window. If your bank cannot meet those terms, find a bank that can, or shift to cash.
Hard assets create lag. Real estate requires appraisals, title work, and priority filings. Marketable securities are faster, but custodial control agreements need negotiation Axcess Surety among three parties and lead times of one to two weeks. Equipment is nearly always a non‑starter. If you must use hard assets, plan weeks, not days, and set expectations accordingly.
Unsecured bonds are possible for principals with strong net worth, minimal leverage, and a consistent record of earnings. Underwriters in that scenario may approve within a couple of days, but they still need a full credit file and indemnity. I have seen private companies with nine‑figure net worth post eight‑figure unsecured bonds, but only after furnishing audited books, personal indemnities from controlling owners, and details on liquidity sources if the appeal fails.
Getting the bond amount right the first time
Nothing wastes more time than revising the bond amount because interest math was sloppy. Do not assume interest is simple interest on the original judgment. Some states compound annually. Some calculate from a blended rate if the federal rate changes during the appeal. A few treat different components of the judgment differently for interest accrual. Courts also disagree on whether to include attorneys’ fees and costs that are discretionary or still being briefed post‑judgment.
Start with the final judgment, then add: any fixed post‑judgment awards that have been entered, projected post‑judgment interest through the likely appeal horizon, and the jurisdiction’s required percentage buffer. If your jurisdiction caps the bond at a percentage of net worth or at an absolute dollar amount, document that rule with a citation in your submission. Attach a short affidavit from someone who did the calculation with the sources used. That level of clarity prevents questions from clerks who are just trying to avoid mistakes.
As for appeal duration, use a realistic range. A typical state appeal can take 12 to 24 months. If you want to be conservative, calculate interest for 24 months and note that you will adjust if the appeal resolves sooner. Over‑bonding slightly is safer than under‑bonding and having enforcement reawaken mid‑appeal.
The approval form is not a suggestion
Courts often publish a bond form or required elements. Some practitioners customize heavily, adding protective language for the principal. This is a prime source of rejection. Clerks are not chartered to referee novel clauses. They are chartered to confirm compliance with the rule and the form. If you need to tailor anything, keep it within the boundaries the court has already signaled it will accept. Many sureties have standard forms for each jurisdiction that have been blessed in prior filings. Use them.
One technical point derails more filings than you would expect: the surety’s power of attorney. The original POA must match the attorney‑in‑fact who signs the bond, the POA must be current, and in some courts, it must be an original with a raised seal. Verify those idiosyncrasies with the clerk in advance. If wet ink is required, do not rely on end‑of‑day couriers.
Working with the clerk’s office
Clerk’s offices run on checklists and local knowledge. A five‑minute call before you finalize the package can save a day. Ask the duty clerk how they want to see the bond amount documented, whether they require an order approving the form or will approve administratively, whether a hearing is needed, and what the current processing lag is for bonds. If the clerk expects to see an insurer licensed in that state with a specific A.M. Best rating minimum, include the surety’s certificate of authority and rating sheet in the packet. That avoids back‑and‑forth on an otherwise simple point.
Timing matters here too. Many clerk’s offices stop accepting bond filings after mid‑afternoon for same‑day review, even if the courthouse stays open later. Do not aim for 4:30 p.m. filings on the last day. If you do, you are volunteering to learn the word continuance in a different context.
Underwriting reality: what moves files from pending to approved
Surety underwriters do not get paid for Axcess Surety bonds speed. They get paid for avoiding losses. That said, they move quickly when they see control of risk and control of process. A file that contains two years of audited financials, recent interims, a signed general indemnity agreement, and fully negotiated collateral that is ready to be posted can clear in 24 to 72 hours, sometimes faster if the team has worked with that principal before.
A file that contains self‑prepared statements, vague assurances about a bank’s willingness to issue a letter of credit, and a partially executed indemnity goes to the bottom of the stack. The underwriter will ask questions you cannot answer at 6 p.m., and by the time you corral signatures, the review cycle resets.
If you want to accelerate without cutting corners, pre‑clear the form of SBLC with the surety and your bank, deliver the indemnity early with corporate authority resolutions attached, and volunteer negative facts before you are asked. If the company is under a temporary covenant waiver, say so and provide the waiver. If the owner has a pending tax lien, disclose it and show a payment plan. Surprises are what slow underwriting, not bad facts disclosed upfront.
Deadlines, interim stays, and strategic sequencing
Few cases travel in a straight line from judgment to bond approval. Post‑trial motions can toll deadlines in some jurisdictions but not others. Some judges will grant a short administrative stay to give the parties time to secure the bond. Others will not. The safest strategy is to run in parallel: perfect the notice of appeal, seek any available interim stay by motion with a concrete timeline for posting security, and push underwriting and collateral forward at the same time.
I have seen counsel file a motion that attached the fully negotiated bond form, a letter from the surety confirming underwriting approval subject only to SBLC receipt, and a representation that the bank had issued the SBLC commitment with an estimated delivery date. Judges like specificity. That motion earned a 14‑day stay without a hearing and kept the sheriff off the doorstep while the bank finalized language.
Be wary of relying on a temporary restraining order to halt enforcement without showing real progress toward security. Appellees will challenge it, and you may find yourself briefing emergency relief while the bond process is still adrift.
Special cases: large verdicts, caps, and nonmonetary judgments
Very large judgments create their own friction. Several states cap supersedeas bonds at a percentage of the appellant’s net worth or at a fixed dollar maximum. Where caps exist, expect the appellee to challenge the net worth calculation. That dispute can chew through your timeline. Bring a CPA and, if necessary, a valuation expert into the conversation early. Courts do not take management’s say‑so on net worth when the difference shifts a nine‑figure bond obligation into eight figures.
When judgments include nonmonetary relief, the path is more nuanced. Some courts require security tailored to the specific injunction, not a simple monetary bond. Others allow a conventional supersedeas bond if the injunction’s economic impact can be quantified. Here, argument and evidence matter as much as paperwork. Underwriters will ask whether noncompliance could expose the surety to performance risk beyond a fixed sum. If it could, either expect collateral equal to the worst‑case monetary exposure or restructure the stay request around alternative conditions.
Corporate authority and signatures: a small thing that causes big trouble
Sureties issue on the strength of indemnity, and courts approve bonds signed by someone with authority. Twice in the past two years I have watched issuances sit idle because the signatory was a vice president who lacked board‑delegated power to encumber assets. Corporate authority should not be an afterthought. Obtain board resolutions authorizing the company to enter the indemnity agreement and to post collateral. If personal indemnities are required, schedule time with the individuals and their counsel to review and sign days before the deadline. For LLCs and partnerships, confirm that the operating agreement or partnership agreement permits the contemplated obligations.
This is the place where in‑house counsel can save the day. They know the authority chain and can prepare resolutions quickly. Pull them into the process early, not for a last‑minute signature hunt.
Fee quotes and premium timing
Expect annual premiums in the range of 0.5 to 2 percent of the bond amount for well‑capitalized principals. Rates move up when the surety perceives higher risk or heavier underwriting lift. If the bond remains in force longer than a year, the premium usually renews annually. Make sure your client understands that before they choose between cash collateral and an SBLC, both of which tie up capital, and a premium that repeats if the appeal stretches.
Quote variability is normal. Two reputable sureties can differ by 25 to 50 basis points on the same file. However, chasing the absolute lowest premium can cost time if the cheaper surety has a longer queue or stricter collateral language. If the bond amount is large, small differences in premium matter, but they should be weighed against closing risk and speed. A timely, slightly more expensive bond protects against enforcement costs that dwarf the premium spread.
Communication with the appellee
While you do not need the appellee’s blessing to post a supersedeas bond, practical communication can avoid skirmishes. If you share that a bond is imminent and provide evidence of surety and timing, you are less likely to face aggressive collection tactics in the short window before filing. In some cases, appellees have agreed to stipulate to the bond form and amount, which streamlines court approval. The stipulation also reduces the risk that the appellee will challenge the sufficiency of security after filing, a maneuver that can unsettle the stay if the court has concerns.
That said, do not overshare sensitive underwriting details. Keep communications factual and focused on the timetable and compliance with the applicable rule.
Edge cases that require judgment
Every now and then, the clean path is blocked. The principal is wealthy on paper but illiquid. The bank will not issue an SBLC without a lien that the senior lender will not permit. The surety wants personal indemnities the owners view as untenable. You need options.
In those cases, look at hybrid structures. A partial cash collateral combined with a lower unsecured tranche can work if the underwriter is comfortable with the blended profile. Third‑party indemnities from a related but financially stronger affiliate can substitute for personal indemnities if corporate formalities support it. For companies with seasonal cash cycles, a timed collateral increase schedule can bridge the gap if the appeal timeline matches the cash ramp. None of these are standard. All require straight talk with the underwriter and a credible plan.
Courts sometimes accept alternative security such as a deposit into the registry of the court or a blocked account jointly controlled by counsel. That can be faster than wrestling an SBLC to the ground, but it ties up cash entirely. If interest rates are high, the opportunity cost is real. I have seen clients park eight figures in a treasury‑backed account pledged to the court to buy time, then replace it with an SBLC once the bank and surety resolved language.
A concise pre‑filing checklist that actually prevents delays
- Verify the governing rule, including bond percentage, caps, and approval process, and call the clerk to confirm form and submission logistics. Calculate the bond amount with documented interest math using the correct statutory rate and a realistic appeal duration, and prepare a short affidavit. Assemble a complete underwriting file: audited financials, recent interims, debt schedules, ownership, organizational chart, and any post‑trial awards. Decide and document collateral early; if using an SBLC, pre‑clear language with both the bank and the surety, and obtain lender consents where needed. Prepare and execute authority documents and indemnities, including board resolutions and any required personal or affiliate guarantees.
What “fast” really looks like, with and without collateral
With cash or an already negotiated SBLC, I have seen bonds issued and filed inside 48 hours. That required a principal with audits on the shelf, counsel who had pre‑downloaded the court’s exact form, and a clerk who confirmed acceptance of scanned POAs. Everyone knew their lane and did not try to renegotiate boilerplate on deadline day.
Without collateral, even strong credits take longer, usually three to five business days for underwriting, and sometimes a week if the surety’s credit committee sits on a fixed calendar. If you are new to the surety, allow more time. Relationships matter. An underwriter who has paid and been repaid by a principal in a prior matter will take calculated risks on speed that a stranger will not.
Common myths that slow you down
Two misconceptions cost time. The first is that the appeal’s strength can substitute for collateral. It cannot. Underwriters read briefs, but they do not stake their balance sheet on predictions about panels. The second is that you can file any bond and fix deficiencies later. Some courts are flexible, but others view an insufficient bond as no bond at all. If the stay depends on sufficiency, you risk opening a collection window while you scramble to cure.
Another subtle trap: assuming the surety will accept the bank’s standard SBLC. Banks draft SBLCs to minimize their own risk, not the surety’s. Expect changes, and do not escalate when they are requested. The two instruments serve different masters. Your job is to reconcile them, not to declare a winner.
Final practical notes from the trenches
A few closing observations from many late nights around this process. Pick a surety broker who does nothing but court bonds. Generalist insurance brokers will try to help, but they will not know which underwriters move quickly on unsecured tranches, which courts still want raised seals, or which bank letters have sailed through before. Send complete documents. Half‑measures multiply emails and push your file to tomorrow’s stack. Treat the clerk as a teammate. Their job is to keep the record straight, not to make your life hard, and they respond well to transparency and politeness.
Most of all, think in parallel lanes: legal steps to preserve the right to appeal, surety steps to satisfy underwriting on a supersedeas bond, and operational steps to gather signatures and collateral. When those three lanes move together, approval follows without drama. When they move one after another, drama finds you.