Court / Judicial
Admiralty Release Bond (Release of Libel)
A bond that a vessel owner posts in federal admiralty court to get an arrested or attached vessel or cargo released while the case goes on.
- Required by
- Federal district courts sitting in admiralty
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond replaces the vessel as security for the claim and promises to pay the court's final judgment, including any appeal. Under Supplemental Rule E(5), it is conditioned to pay the principal sum plus 6 percent interest. If the owner loses and does not pay, the claimant collects from the surety.
Who needs it
- Vessel owners whose ship has been arrested
- Cargo owners whose goods have been attached
- Maritime attorneys representing claimants of seized property
What the underwriter looks at
- Size of the claim
- Value of the vessel or property
- Owner's financial strength
- Collateral
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Why is it called a libel bond?
'Libel' is the old name for a complaint in admiralty. Courts now call it a release bond or special bond under Supplemental Rule E(5).
How much bond will the court set?
The parties can agree on an amount. If they cannot, the court sets it to cover the claim fairly stated with interest and costs, but not more than twice the claim or the appraised value of the property, whichever is less.
How fast can a vessel be released?
Once the bond is approved and filed, the court orders the release. Speed depends on the surety's underwriting and the court.