(A) Motion. On motion of a party against whom a claim has been asserted in a civil action, if it appears reasonable and proper, the court may order the opposing party to file with the court clerk a bond with surety as required by the court in an amount sufficient to cover all costs and other recoverable expenses that may be awarded by the trial court, or, if the claiming party appeals, by the trial and appellate courts. The court shall determine the amount in its discretion. MCR 3.604(E) and (F) govern objections to the surety.
(B) Exceptions. Subrule (A) does not apply in the following circumstances:
(1) The court may allow a party to proceed without furnishing security for costs if the party’s pleading states a legitimate claim and the party shows by affidavit that he or she is financially unable to furnish a security bond.
(2) Security shall not be required of
(a) the United States or an agency or instrumentality of the United States;
(b) the State of Michigan or a governmental unit of the state, including but not limited to a public, municipal, quasi-municipal or governmental corporation, unincorporated board, public body, or political subdivision; or
(c) an officer of a governmental unit or agency exempt from security who brings an action in his or her official capacity.
(C) Modification of Order. The court may order new or additional security at any time on just terms,
(1) if the party or the surety moves out of Michigan, or
(2) if the original amount of the bond proves insufficient.
A person who becomes a new or additional surety is liable for all costs from the commencement of the action, as if he or she had been the original surety.