Texas Sequestration Bond | AmeriPro Surety Bonds | 844-589-9732
Texas Sequestration Bond: Mandated by Texas Law
The Texas Rules of Civil Procedure, Section 8 outlines the conditions under which one is required to obtain a sequestration bond.
First, What is a Sequestration Bond?
A Texas sequestration bond is a surety bond, obtained by the plaintiff, in a dispute regarding property held by a defendant, which allows a Texas Sheriff or Marshall to remove the property from the defendant before a judgment is given in a case.
Removal of the property from the possession of the defendant prevents the defendant from disposing of the property.
If the defendant were able to dispose of the property, doing so would thereby remove the property from the court’s reach and authority.
The surety bond guarantees that if it is subsequently discovered that the property were wrongly seized from the defendant, the defendant will receive the property’s full monetary value back, if not the property itself.
The Texas Sequestraton Bond: Fully Collateralized
An important point to remember about a Texas sequestration bond is that the bond is fully collateralized.
This means that in addition to the purchase of the bond itself, the amount required is at least in the full cash amount or some other equivalent.
Texas Sequestration Bond: In Addition to Being Fully Collateralized: Premium
Besides the Texas sequestration bond being fully collateralized, there is the bond’s premium—the price the plaintiff will pay for obtaining the bond.
Applicants should know the following about the sequestration bond’s premium:
- The amount will be a percentage of the bond itself, subject to an applicant’s credit score;
- The premium renews and is payable on an annual basis for as long as the underlying court case remains active.
Texas Sequestration Bond: Amount Required
According to Texas state law, the amount of the surety bond required will be in an amount to cover all damages and costs that may be incurred against the defendant.
The law also permits the defendant to request an increase or decrease in the amount of the bond required.
AmeriPro Surety Bonds
AmeriPro Surety Bonds will help you successfully navigate any complexities involved in obtaining your sequestration bond.
Despite its seemingly exotic nature, the bond itself is rather simple and straightforward.
The principal — or legal counsel — may call our agency today.
We’ll walk you through understanding the steps and, with your cooperation, we’ll get you bonded.