Rule 3.604 Bonds

(A) Scope of Rule. This rule applies to bonds given under the Michigan Court Rules and the Revised Judicature Act, unless a rule or statute clearly indicates that a different procedure is to be followed.

(B) Submission to Jurisdiction of Court by Surety. A surety on a bond or undertaking given under the Michigan Court Rules or the Revised Judicature Act submits to the jurisdiction of the court and consents that further proceedings affecting the surety's liability on the bond or undertaking may be conducted under this rule.

(C) Death of Party; Substitution of Surety. If the only plaintiff or the only defendant dies during the pendency of an action, in addition to the parties substituted under MCR 2.202, each surety on a bond given by the deceased party shall be made a party to the action, on notice to the surety in the manner prescribed in MCR 2.107.

(D) Affidavit of Surety; Notice of Bond.

(1) A surety on a bond, except for a surety company authorized to do business in Michigan, must execute an affidavit that he or she has pecuniary responsibility and attach the affidavit to the bond.

(2) In alleging pecuniary responsibility, a surety must affirm that he or she owns assets not exempt from execution having a fair market value exceeding his or her liabilities by at least twice the amount of the bond.

(3) A copy of a bond and the accompanying affidavit must be promptly served on the party for whose benefit it is given in the manner prescribed in MCR 2.107. Proof of service must be filed promptly with the court in which the bond has been filed.

(4) In an action alleging medical malpractice filed on or after October 1, 1986, notice of the filing of security for costs or the affidavit in lieu of such security, required by MCL 600.2912d, 600.2912e, shall be given as provided in MCR 2.109(B).

(E) Objections to Surety. A party for whose benefit a bond is given may, within 7 days after receipt of a copy of the bond, serve on the officer taking the bond and the party giving the bond a notice that the party objects to the sufficiency of the surety. Failure to do so waives all objections to the surety.

(F) Hearing on Objections to Surety. Notice of objection to a surety must be filed as a motion for hearing on objections to the bond.

(1) On demand of the objecting party, the surety must appear at the hearing of the motion and be subject to examination as to the surety's pecuniary responsibility or the validity of the execution of the bond.

(2) After the hearing, the court may approve or reject the bond as filed or require an amended, substitute, or additional bond, as the circumstances warrant.

(3) In an appeal to the circuit court from a lower court or tribunal, an objection to the surety is heard in the circuit court.

(G) Surety Company Bond. A surety company certified by the Commissioner of Insurance as authorized to do business in Michigan may act as surety on a bond.

(H) Assignment or Delivery of Bond. If the condition of a bond is broken, or the circumstances require, the court shall direct the delivery or assignment of the bond for prosecution to the person for whose benefit it was given. Proceedings to enforce the bond may be taken in the action pursuant to subrule (I).

(I) Judgment Against Surety.

(1) Judgment on Motion. In an action in which a bond or other security has been posted, judgment may be entered directly against the surety or the security on motion without the necessity of an independent action on a showing that the condition has occurred giving rise to the liability on the bond or to the forfeiture of the security.

(2) Notice. Notice of the hearing on the motion for judgment must be given to the surety or the owner of the security in the manner prescribed in MCR 2.107. The notice may be mailed to the address stated in the bond or stated when the security was furnished unless the surety or owner has given notice of a change of address.

(3) Restitution. If in later proceedings in the action, on appeal or otherwise, it is determined that the surety is not liable or that the security should not have been forfeited, the court may order restitution of money paid or security forfeited.

(J) Application to Another Judge After Supersedeas Refused.

(1) If a circuit judge has denied an application for supersedeas in whole or in part, or has granted it conditionally or on terms, a later application for the same purpose and in the same matter may not be made to another circuit judge if the first judge is available.

(2) If an order is entered contrary to the provisions of subrule (J)(1), it is void and must be revoked by the judge who entered it, on proof of the facts. A person making a later application contrary to this rule is subject to punishment for contempt.

(K) Cash or Securities Bond. The furnishing of a cash or securities bond under MCL 600.2631 is deemed compliance with these rules.

(L) Stay of Proceedings Without Bond. If a party required to give a bond under these rules for supersedeas, appeal, or otherwise is unable to give the bond by reason of poverty, the court may, on proof of the inability, limit or eliminate the requirement for surety on the bond on appropriate conditions and for a reasonable time.