We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

In Law, What Are the Different Types of Bonds?

By Staci A. Terry
Updated Feb 25, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

There are many different types of bonds used in the legal arena. Some of the most common types of bonds include municipal bonds, bail bonds, and appeal bonds. The purpose of each of these types of bond is to secure the obligation of another person, whether that obligation is to support a project, pay a judgment, or appear in court. In most cases, national or local jurisdiction laws govern the different types of bonds, so their nature and requirements may differ from one area to the next.

A municipal government bond is a government issued debt used to finance some sort of public improvement project, such as the restoration or establishment of roads, bridges, or sewer systems. Government entities eligible to issue municipal bonds include cities, towns, school districts, utility districts, or any type local government body. Many municipal bonds are general obligation bonds, which are issued when the government entity uses its credit to back the bond, as derived from its power of taxation. Unlike most bonds, there is no collateral pledged in support of the bond. General obligation bonds are not dependent on any revenue from any improvement project for repayment.

An insurance company issues a bail bond through a bail bondsman, which permits the release of a defendant or a person accused of a crime prior to his or her court trial. A bail bond secures the appearance of the defendant at subsequent court hearings and trials. If the defendant subsequently fails to appear, the bail bondsmen must locate and produce the defendant, or the court will order the bond forfeited. In order to obtain a bail bond, a defendant typically must pay the bondsman no less than ten percent of the face value of the bond, and sometimes requires the posting of additional collateral to secure the bond, such as real estate. Some jurisdictions refer to bail bonds as surety bonds.

A party who is appealing a court judgment to a higher court often must post an appeal bond with the court. An appeal bond secures or guarantees the execution of the fiduciary’s duties in the event that the appeal is unsuccessful. The theory behind an appeal bond is to ensure that the plaintiff still can recover payment on the judgment, despite failure of the appeal, even if the party who owes the judgment becomes insolvent or the judgment otherwise becomes uncollectible. Like a bail bond, the amount of an appeal bond is set by a court. These types of bonds may differ from one jurisdiction to the next, and are dependent on local law.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.