Sequestration or Replevin Bonds

Case Studies

Case Study #1: Dentist’s Office

Dr. Smith, a new dentist in town, has decided to open up his own practice. Unfortunately, dental equipment can be expensive, so he takes out a loan from his local bank to pay for it. After several months, Dr. Smith has a dispute with the bank over the terms of the loan and halts payment. Unable to resolve their differences, the bank enters into a replevin action to take possession of the expensive dental equipment.

The judge grants the replevin in an ex parte hearing with the condition that the bank post abond to protect Dr. Smith in the event the dental equipment is wrongfully repossessed. After posting the bond, the local sheriff assists with enforcing the replevin, and the bond will remain in place until all court proceedings have been resolved between the opposite parties

Case Studies

Case Study #2: Auto Lender

A motorcycle company agrees to three year financing terms with a purchaser. After about a year, the purchaser is no longer able to keep up with payments and fails to give notice to renegotiate the loan. After several months of reaching out to attempt to resolve the issue, the lender decides to repossess the motorcycle and initiates a replevin action in court. The purchaser; however, has moved out of town and cannot be found within the district.

The lender must find the purchaser and motorcycle and re-initiate the replevin action- this time in the appropriate court. The judge, finding the lender’s arguement reasonable, agrees to issue the writ of replevin conditioned upon the furnishing of a replevin bond to protect the purchaser in the event that the lender’s claims are challenged and proved to be erroneous.

The local sheriff or other law enforcement entity will typically assist in enforcement actions to repossess the vehicle, and the bond can be released upon the conclusion of court proceedings.