Appeal Bond vs. Supersedeas Bond: What's the Actual Difference?
An appeal bond (the FRAP 7 “cost bond”) guarantees you'll pay the other side's appellate costs if you lose — typically $250 to $2,500, set by the district court. A supersedeas bond (FRCP 62(b), or FRAP 8(a)(2)(E) in the court of appeals) is a completely different instrument: it stays enforcement of the judgment, sized to 100-150% of what you owe. Confusing the two is how appellants find out — too late — that they paid for a small cost bond and got no protection from garnishment at all.
Some states don't even call it a “bond.” California and New York use the word “undertaking.” Below: the federal rule text, a state-by-state terminology map, and exactly when you need both bonds posted at once.
- Who requires it: The district court sets the cost bond; the supersedeas bond follows federal rules or the state's formula (some states call it an undertaking).
- Amount: Cost bond: typically $250 to $2,500, set by the district court. Supersedeas bond: typically 100-150% of the judgment.
- Typical cost (estimate): A supersedeas bond premium is commonly 1-4% of the bond amount a year, and carriers may require collateral on large judgments. Page example: roughly $20 a year for a small cost bond. The surety sets the final price.
Why This Distinction Costs Appellants Real Money
We field calls every month from appellants who posted a bond, assumed they were protected, and then got hit with a bank levy anyway. In nearly every case, they had posted the FRAP 7 cost bond — the small one — and never posted the supersedeas bond that actually stops collection. The clerk's office does not proactively warn you about the second bond; it's on you (or your producer) to know both exist.
The reverse mistake also happens: appellants overpay for a full supersedeas-sized bond when the court only required the small cost bond, because a case with no risk of immediate collection (e.g., an injunction-only judgment) doesn't need a stay bond at all.
Rule of thumb: if your goal is to stop the winning party from collecting while you appeal, the cost bond does not do that job. You need the supersedeas bond (or local equivalent) specifically.
Appeal Bond vs. Supersedeas Bond: The Difference in One Table
These aren't two names for the same thing — they secure different obligations, are set by different authority, and cost wildly different amounts. Read this table before you talk to a surety producer.
Cost Bond vs. Stay Bond — Side by Side
Federal terminology; state equivalents vary (see terminology map below)
| Appeal Bond (FRAP 7 Cost Bond) | Supersedeas Bond (FRCP 62(b) / FRAP 8 Stay Bond) | |
|---|---|---|
| Purpose | Guarantees payment of the appellee’s appellate costs if the appeal fails | Stays (pauses) enforcement of the underlying money judgment during the appeal |
| Who requires it | The district court, on its own motion or the appellee’s motion | The appellant elects to post it — courts don’t impose it automatically |
| Typical amount | $250–$2,500 (district court discretion; no statutory formula) | 100–150% of the judgment (state/local formula or district practice) |
| What happens without it | Appeal generally still proceeds; appellee may seek costs later or move to dismiss for nonpayment | No stay takes effect — the judgment creditor can garnish, levy, or lien immediately, appeal notwithstanding |
| Governing federal rule | FRAP Rule 7 | FRCP Rule 62(b) (district court) / FRAP Rule 8(a)(2)(E) (court of appeals) |
State courts use parallel rules with their own terminology and formulas — see the state-by-state map below.
The Federal Rules: FRAP 7, FRAP 8, and FRCP 62(b)
FRAP Rule 7 — The Cost Bond
Rule 7 is short and gives the district court broad discretion: it may require an appellant to post security for the appellee's appellate costs, but it doesn't have to, and it sets no fixed dollar figure. Before 1979 the rule set a flat $250 bond; the current version leaves both the decision and the amount to the district court.
- Covers appellate costs only — filing fees, transcript costs, printing
- Does not stay enforcement of the judgment
- District court sets amount; typically modest unless costs are unusually high
- Rule 7 explicitly cross-references Rule 8(b) surety requirements
FRAP 8 & FRCP 62(b) — The Stay Bond
Two rules work together here. FRCP Rule 62(b) lets a party obtain a stay in the district court “by providing a bond or other security.” If the district court denies a stay or the case is already up on appeal, FRAP Rule 8(a)(2)(E) lets the court of appeals condition relief on “a party's filing a bond or other security in the district court” — the appellate court can order the security even though it's filed below.
- Amount approximates the full judgment — not a flat cost figure
- Stay takes effect only once the court approves the security
- The 2018 amendment replaced "supersedeas bond" with "bond or other security"
- "Other security" now expressly includes cash deposits, letters of credit, and marketable securities
Official Federal Requirements
"In a civil case, the district court may require an appellant to file a bond or provide other security in any form and amount necessary to ensure payment of costs on appeal. Rule 8(b) applies to a surety on a bond given under this rule."Federal Rules of Appellate Procedure • FRAP Rule 7 — Bond for Costs on Appeal
Official Federal Requirements
"The court may condition relief on a party's filing a bond or other security in the district court."Federal Rules of Appellate Procedure • FRAP Rule 8(a)(2)(E) — Stay Pending Appeal
Official Federal Requirements
"At any time after judgment is entered, a party may obtain a stay by providing a bond or other security. The stay takes effect when the court approves the bond or other security and remains in effect for the time specified in the bond or other security."Federal Rules of Civil Procedure • FRCP Rule 62(b) — Stay by Bond or Other Security
What Each State Actually Calls It
“Supersedeas bond” is the most common label, but it isn't universal. Search the wrong term in your state and you may miss the statute that actually governs your filing.
Stay-Bond Terminology by Jurisdiction
The instrument that stays enforcement of a money judgment pending appeal
| Jurisdiction | What They Call It | Statute / Rule | Category |
|---|---|---|---|
| Federal courts | "Bond or other security" | FRAP 7 / FRAP 8(a)(2)(E) / FRCP 62(b) | Neutral term (since 2018 amendment) |
| California | "Undertaking" | Code Civ. Proc. §917.1 | Undertaking |
| New York | "Undertaking" | CPLR §5519 | Undertaking |
| Texas | "Supersedeas bond" | Tex. R. App. P. 24 | Supersedeas |
| Florida | "Supersedeas bond" | Fla. R. App. P. 9.310 | Supersedeas |
| Georgia | "Supersedeas bond" | O.C.G.A. §5-6-46 | Supersedeas |
| Pennsylvania | "Supersedeas" (secured by bond) | Pa. R.A.P. 1731 | Supersedeas |
| Washington | "Supersedeas bond" | RAP 8.1 | Supersedeas |
| Illinois | "Appeal bond" | Ill. Sup. Ct. R. 305 | Appeal bond |
Every jurisdiction below requires functionally the same three-party surety arrangement — only the label and formula differ.
Why California and New York say “undertaking”
Both states inherited the term from older civil procedure codes that used “undertaking” for any court-ordered surety instrument, not just appeal security — probate and injunction undertakings use the same word. If you search “California supersedeas bond,” you'll find plenty of results, but the actual statute (CCP §917.1) never uses that phrase.
Why Illinois says “appeal bond”
Illinois Supreme Court Rule 305 refers to “an appeal bond or other form of security” — collapsing the federal cost-bond/stay-bond distinction into a single instrument that does the stay-bond job. There's no separate small cost bond required at the state level in Illinois the way FRAP 7 requires federally.
When You Need Both Bonds at Once
Illustrative Example
A defendant loses a $1.4 million breach-of-contract judgment in federal district court and files a notice of appeal. Two things happen almost simultaneously:
On the appellee's motion, the district court sets a FRAP 7 cost bond at $1,500 — a routine, small figure to cover appellate filing and printing costs if the appeal fails.
Separately, the defendant moves under FRCP Rule 62(b) for a stay, and posts a supersedeas bond at 140% of the judgment — $1,960,000 — to cover principal plus roughly a year of anticipated post-judgment interest under 28 U.S.C. §1961.
Both bonds are active on the same case at the same time. Skipping the second one because the first was already posted is the single most common — and most expensive — mistake we see appellants make. The defendant in this scenario pays roughly $20/year premium on the cost bond and 1-1.5% annually on the supersedeas bond (about $19,600-$29,400/year at $1.96M), a materially different cost profile than assuming “the appeal bond” covers everything for one price.
How to tell if your case needs both
- The judgment includes a monetary award AND you want to stop the winner from collecting during the appeal → you need both
- The appellee (or the court) has specifically moved for costs security under FRAP 7 → you need the cost bond regardless of the stay bond
- The judgment is purely injunctive/declaratory with no money award → you likely need only the cost bond, if any
- You don't intend to seek a stay and are willing to let collection proceed → you may only need the cost bond, and can skip the stay bond's expense
How Each Jurisdiction Sets the Stay-Bond Amount
The cost bond is always small and court-discretionary. The stay bond's amount is where jurisdictions genuinely diverge — some multiply the judgment, some add fixed interest periods, and a few cap the total regardless of formula.
Supersedeas / Undertaking Amount Formulas — 9-Jurisdiction Comparison
| Jurisdiction | Formula | Cap | Statute / Rule |
|---|---|---|---|
| Federal (no local rule) | ~100-110% of judgment, district discretion | None federal-wide; local rules may narrow it | FRCP 62(b) |
| California | 1.5x judgment (admitted surety) / 2x (personal sureties) | None | Code Civ. Proc. §917.1 |
| New York | 100% of the money judgment | None specified [UNVERIFIED beyond statute text] | CPLR §5519(a)(2) |
| Texas | Compensatory damages + interest + costs | Lesser of 50% of net worth or $25,000,000 | Tex. R. App. P. 24.2 |
| Florida | Judgment principal + 2 years’ statutory interest | None (insurer exception: policy limit + 15%) | Fla. R. App. P. 9.310(b)(1) |
| Georgia | Full unsatisfied judgment + costs + interest + delay damages | $25 million total, across all appellants collectively | O.C.G.A. §5-6-46(b) |
| Illinois | Judgment + costs + anticipated interest (~150% rule of thumb) | None | Ill. Sup. Ct. R. 305 |
| Pennsylvania | 120% of amount due (or 120% of 18-month aggregate if payable over time) | None | Pa. R.A.P. 1731 |
| Washington | Judgment + interest during appeal + likely fees/costs | None | RAP 8.1 |
Formulas apply to money judgments. Judgments involving real or personal property use separate valuation rules in most states.
California's Undertaking Formula (CCP §917.1)
Cal. Code Civ. Proc. §917.1 — no statutory dollar cap on the undertaking amount.
The States With Hard Dollar Caps
Texas, Georgia, and Florida stand out because they cap what a judgment debtor can be forced to post, regardless of how large the judgment is. Texas caps supersedeas security at the lesser of 50% of the judgment debtor's net worth or $25,000,000 (Tex. R. App. P. 24.2) — a rule specifically designed to prevent a judgment from forcing a company into bankruptcy just to exercise its right to appeal. Georgia caps the total supersedeas bond required of all appellants collectively at $25 million, regardless of the judgment's size (O.C.G.A. §5-6-46(b)). Florida caps exposure differently: an insurance company defending its own insured can supersede at its policy limit plus 15%, rather than the full judgment, when the judgment exceeds coverage (Fla. R. App. P. 9.310). California, Illinois, Pennsylvania, and Washington impose no equivalent statutory ceiling.
For a full walkthrough of a specific state's formula, see our Texas supersedeas bond guide, California appeal bond guide, or Florida supersedeas bond guide.
Which Bond Do You Need? A Decision Flowchart
Know Which Bond You Need? Let's Quote It.
Cost bond, stay bond, or both — our licensed producers work with Treasury-listed carriers for federal filings and admitted carriers in every state. Most appeal and supersedeas bonds quote within hours.
Frequently Asked Questions
I already posted the FRAP 7 cost bond. Do I still need a supersedeas bond to stop collection?
My court paperwork says 'undertaking' instead of 'bond' — is that the same thing?
Does posting a supersedeas bond dismiss my case, or just pause collection?
I can't afford to post 150% of the judgment in cash — what are my options?
Why is my appeal bond only $500 but the supersedeas bond is $1.2 million?
Do I buy the cost bond and the stay bond from the same surety, or are they two separate policies?
Related Appeal & Court Bond Resources
Don't Pay for the Wrong Bond
Tell us the judgment amount and whether you need the cost bond, the stay bond, or both — our licensed producers will quote the exact instrument your court requires, not a generic estimate.
Call us directly: 1-844-810-BOND (2663)
Eric Drummond
Licensed Surety Producer
- Nevada: License #4222379 (Insurance Producer)
All content is researched from official state and federal sources (.gov) and reviewed by surety bond specialists. Bonds are placed with Treasury-listed surety carriers; approval and pricing are determined by the issuing carrier.