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MGA for Federally Authorized Surety Companies — North Carolina Practice

The North Carolina plaintiff cost bond. $200 statutory bond.

North Carolina General Statutes §1-109 authorizes the clerk of superior court or a judge, on defendant's motion and showing of good cause, to require the plaintiff to file a cost bond in the sum of two hundred dollars with sufficient surety. We write North Carolina cost bonds same-day for all 100 North Carolina counties and the three U.S. District Courts for North Carolina.

Bond Penalty
$200 statutory minimum
Multiplier Type
$200 statutory
Filing
Clerk of Superior Court
Turnaround
Same-day issuance

What a North Carolina cost bond actually does.

North Carolina's plaintiff cost bond statute is one of the oldest codified non-resident cost bond requirements in the United States. Under N.C. Gen. Stat. §1-109, a clerk of superior court or judge, upon motion of the defendant and showing of good cause, may require the plaintiff to file a cost bond with sufficient surety in the sum of two hundred dollars, with the condition that it will be void if the plaintiff pays the defendant all costs the defendant recovers in the action.

The $200 statutory amount is fixed by the legislature and has remained unchanged for many decades. While modest by modern standards, the §1-109 bond functions as both a security instrument and a procedural prerequisite — failure to file within the time set by the clerk or judge is grounds for dismissal.

Practice notes: §1-109 applies on defendant's motion, not automatically. The "good cause" showing is typically satisfied by demonstrating that the plaintiff is a non-resident or that the action presents heightened costs exposure. Some North Carolina courts also apply §1-110 (security for costs from indigent plaintiffs) and §6-21 (costs taxation) alongside §1-109.

The rules we underwrite to.

North Carolina's plaintiff cost bond requirement is codified at N.C. Gen. Stat. §1-109. The bond is required on defendant's motion (in most cases) and the bond penalty is set by statute or court discretion. We underwrite to the controlling statute and draft each bond on the form the North Carolina court will accept.

Controlling Authorities
N.C.
N.C. Gen. Stat. §1-109 — Cost bond required on defendant's motion — $200 statutory amount
N.C.
N.C. Gen. Stat. §1-110 — Security for costs from non-resident plaintiff
N.C.
N.C. Gen. Stat. §6-1 et seq. — Costs — recovery and taxation framework
N.C.
N.C. R. Civ. P. 41(d) — Costs of previously dismissed action

How a North Carolina cost bond gets issued.

North Carolina §1-109 cost bonds are the simplest court bonds in our practice. The penal sum is fixed at $200; the bond is uncollateralized; the application is a one-page form; issuance is same-day routine. We have written tens of thousands of NCGS §1-109 cost bonds for non-resident plaintiffs across all 100 North Carolina counties.

One document starts the file: the complaint or, where the §1-109 motion has been filed, the clerk's or judge's order requiring the bond. The principal's address (establishing non-residency for §1-110 purposes if applicable) is captured on the application form.

Filing is with the Clerk of Superior Court in the county where the underlying action is pending. North Carolina counties accept e-filed bonds through the Statewide Electronic Filing System (eCourts) where it has been deployed; for non-eCourts counties, bonds are filed in hard copy.

North Carolina-specific questions.

What is the penal sum of a North Carolina §1-109 cost bond?
$200, fixed by statute. The penal sum is not subject to court discretion under §1-109. Larger cost security in North Carolina is occasionally obtained through court orders under inherent equity authority, but those are not §1-109 bonds.
When is a §1-109 cost bond required?
On defendant's motion and a showing of good cause to the clerk of superior court or a judge. Good cause is typically established by showing non-residency or heightened costs exposure.
What happens if the plaintiff fails to file?
The action is subject to dismissal. The clerk or judge sets the time within which the bond must be filed; failure to file within that time is grounds for dismissal under §1-109.
Are corporate plaintiffs subject to §1-109?
Yes. Foreign corporations and non-resident individuals are treated equivalently under §1-109. Corporations registered to do business in North Carolina are not treated as non-resident.
Where is the bond filed?
With the Clerk of Superior Court in the county where the underlying action is pending. North Carolina has 100 counties, each with its own clerk of superior court.
How long does issuance take?
Same-day. Most §1-109 bonds are issued on a one-page application within hours of receipt. We deliver in PDF for direct e-filing through eCourts where available.

Related plaintiff cost bond practice.

Further reading on the Surety One blog

↗ suretyone.com/blog

Filing in North Carolina as a non-resident?

Send the complaint or the defendant's motion for cost bond. Same-day issuance for qualified files.