If you are the plaintiff in a civil proceeding, or legal counsel for the same, a recent court order may have informed you of the need to obtain an “injunction bond” as a condition for court proceedings to continue.
In short, an Iowa injunction bond is required of a plaintiff to purchase, in favor of the defendant(s), in case it is subsequently determined that the plaintiff’s case against the defendant was without merit. The surety bond exists as a guarantee that the defendant will be able to recover losses against a plaintiff, since by the plaintiff’s actions the defendant was unable to engage in certain activity.
According to Rule 1.1508 of Iowa's statutes, the amount of an plaintiff injunction bond must be 125% of the “...probable liability to incurred...” However, as you know, the court will inform you of the amount of bond required. Our agency will need a copy of the court order stating the amount of the bond required, along with a copy of the Case number.
Up to $25,000, all candidates will be approved for the Iowa injunction bond, provided that the following are met:
For an IA injunction bond up to $25,000, there is neither a credit check nor underwriter review. The bond is essentially issued to you immediately.
To qualify for an Iowa injunction surety bond for any amount above $25,000 (even if just by $1), an application and a credit review are standard.
Depending on the amount of the bond, a financial statement may also be required. Applicants will also need to have “good credit” to qualify and sometimes, evidence of a healthy financial standing. This can be complied with by providing a tax return or a financial statement.
After the bond has been approved and issued, a copy of the bond can be emailed to you or legal counsel. The original surety bond, which you will sign as the bond's Principal, will be sent for filing with the court by the following business day.
The standard premium for this court-mandated surety bond is typically 2%. For amounts which become particularly higher, the premium percentage will be adjusted lower.
The premium for an Iowa injunction bond is also not a onetime payment. For as long as the underlying court case is active, the premium renews annually on the anniversary of the bond’s issuance. Premiums when paid are earned in full.
Options are also available to prepay the premium up to 2 or 3 years. Prepayment of the premium offers you a savings over year to year renewal of the premium. Our agency will discuss this with you in greater detail.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit and court surety bonds throughout Iowa.
Our agency also provides surety bonds nationwide. Please contact our agency today at:
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