Court / Judicial
Injunction Bond
An injunction bond is security a party must post when it asks a court for a temporary restraining order or preliminary injunction.
- Required by
- Federal and state courts (Federal Rule of Civil Procedure 65(c) and state equivalents)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
Protection of a defendant that has been wrongly accused of a financial loss. The bond pays the costs and damages suffered by a party later found to have been wrongfully enjoined or restrained. The court sets the amount it considers proper.
Who needs it
- Businesses seeking to enforce non-competes or trade secrets
- Parties seeking to stop a foreclosure, sale, or construction
- Any plaintiff asking for a TRO or preliminary injunction
What the underwriter looks at
- Amount the court sets
- Applicant's financial strength
- Collateral available
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
Who decides the amount?
The judge sets it based on the harm the other side could suffer if the injunction turns out to be wrong. It can range from nominal to very large.
How fast can I get one?
TRO bonds are often needed the same day the order is signed. Send BaySide the order or the proposed amount as early as you can.