Injunction Bond

An injunction bond is designed to protect the defending party in a court case that has been wrongly accused by a plaintiff from financial loss. This bond indemnifies (binds the indemnitor, or signor, to hold someone harmless, meaning that the indemnitor will not take legal action against this person, in the event of a loss) the party for responsibility of damages and/or losses.

A plaintiff is the person who, in a law suit or court case, files the suit and accuses the defendant of some sort of wrongdoing. An injunction is issued to have a defendant in a court case or law suit refain from doing or do a particular act.

The bond covers damages from a false injuction, hence the name.

The bond penalty (amount) varies depending on the state that the court case or law suit is being held in or is set by the presiding judge in a court case or law suit.