What collateral requirement is usually associated with appeal bonds?

An appeal bond, often required in legal proceedings when a party wishes to contest a judgment, is essentially a guarantee that the appealing party will pay the judgment amount if they lose the appeal. Typically, the collateral requirement associated with appeal bonds is set at 100% of the judgment amount. This means that the appealing party must secure a bond for the full amount of the judgment, ensuring that the other party is protected in case the appeal does not succeed.

This requirement is crucial because it acts as a financial assurance that should the appeal fail, the opposing party will be compensated for any damages or losses associated with the original judgment. By requiring the full amount, the court ensures that there are sufficient funds available to satisfy the judgment, thereby encouraging parties to think carefully before initiating an appeal. If the collateral were less or not required at all, it could lead to inequities where the appealing party might not be held accountable for the judgment if they lose the appeal.