Appeal Bond Law and Legal Definition
An appeal bond is a bond required to be posted in some cases by a party seeking to appeal a final judgment. Appeal bonds are governed primarily by state laws, which vary by state. Often, the appeal bond is required when the party bringing the appeal is purposefully dissipating assets in an effort to avoid ultimate payment of the judgment. The theory behind the appeal bond requirement is that it will essentially protect a plaintiff from the possibility that a judgment cannot be enforced because the debtor has become insolvent. In some states this bond requirement is statutorily defined and can be as high as 1.5 times the judgment amount. An appeal bond may be required under applicable law to perfect an appeal. Failure to perfect an appeal has the effect of making the judgment final and executory.