What is the purpose of an appeal bond?

The purpose of an appeal bond is indeed to cover court costs during the appeal process. This type of bond is typically required when a party wishes to appeal a court decision but needs to ensure that the opposing party will be compensated for costs incurred should the appeal not succeed. The bond acts as a security measure, promising that if the appeal fails, the appealing party will cover the costs associated with the appeal.

The appeal bond also holds the appealing party accountable, thus discouraging frivolous or unnecessary appeals. It protects the interests of the other party by ensuring that they will not be left at a financial disadvantage if the appeal is lost. In essence, the appeal bond functions as a financial assurance for the court and the opposing party that costs will be satisfied, promoting fairness in the judicial process.