[WSBAPT] Execution Sale - Sheriff's Indemnity Bond

[Douglas Bratt]

Hello Listmates:

I am dealing with a proposed execution sale after entry of a judgment.

A Promissory Note, secured by a Deed of Trust is the item that a client wants to execute upon.  The amount owed on the Promissory Note is about $270,000.00, with monthly installment payments for about 32 months, at which time a full payoff of the remaining balance is due.

(I know - Garnishment might be the better way of going, but the client does not want to have to go through the hassle of going through garnishments time after time.)

However, after finding out about the cost of a Sheriff's Indemnity Bond, that might be what will have to happen.

RCW 36.28.050 appears to allow the Sheriff to "require" an indemnifying bond in cases involving the sheriff to take possession of personal property. The statute makes no mention of how much bond is required, appearing to leave that question up to the individual county sheriffs.

In our county (Clark County), a Sheriff's Indemnity Bond in an amount 2 times the value of the property is required.  I suppose that is what our county Prosecutor's Office has advised the Sheriff to require.

Application has been made for a $540,000.00 bond, and the premium quotes are astounding.  Two quotes have been received - one for $6,800, and the second one in excess of $10,000.

Does anyone have experience dealing with such bonds, and, if so, is this amount of premium to be expected?  If anyone has had luck dealing with a particular bonding company or insurance agent for such a product, please provide info.

Thank you so much.

Regards,

Doug Bratt


Douglas J. Bratt
Lawyer

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Office: (360) 213-2040
 Fax: (360) 213-2030



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