An Injunction Bond is used in concert with an injunction court order. An injunction court order necessitates that a party cease and desist a particular action. The Injunction Bond is a guarantee that covers financial damages to the party served with an injunction notice if the injunction notice is later determined to be wrongful.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Injunction Court Bond holds you accountable for your decisions.
By possessing a Injunction Court Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your decisions.