(a) In civil litigation under any legal theory involving a signatory, a successor to a signatory, or a parent or an affiliate of a signatory to the Master Settlement Agreement described in Section 6z-43 of the State Finance Act, execution of the judgment shall be stayed during the entire course of appellate review upon the posting of a supersedeas bond or other form of security in accordance with applicable laws or court rules, except that the total amount of the supersedeas bond or other form of security that is required of all appellants collectively shall not exceed $250,000,000, regardless of the amount of the judgment, provided that this limitation shall apply only if appellants file at least 30% of the total amount in the form of cash, a letter of credit, a certificate of deposit, or other cash equivalent with the court. The cash or cash equivalent shall be deposited by the clerk of the court in the account of the court, and any interest earned shall be utilized as provided by law.
2-1306.Supersedeas bonds.
Article II. Civil Practice · Part 13. Judgment · Last amended 2013 · Last verified July 20, 2026
In one sentenceSection 2-1306 caps the appeal bond that tobacco Master Settlement Agreement defendants must post at $250 million, unless they're dodging the judgment by dissipating assets.
Full Text of 735 ILCS 5/2-1306
(b) Notwithstanding subsection (a) of this Section, if an appellee proves by a preponderance of the evidence that an appellant is dissipating assets outside the ordinary course of business to avoid payment of a judgment, a court may require the appellant to post a supersedeas bond in an amount up to the total amount of the judgment.
(c) This Section applies to pending actions as well as actions commenced on or after its effective date, and to judgments entered or reinstated on or after its effective date.
Plain-English Summary
This section reaches civil litigation against a signatory to the tobacco Master Settlement Agreement, or a successor, parent, or affiliate of one. Ordinarily an appeal bond has to secure the whole judgment, but here the total bond required of all appellants collectively is capped at $250,000,000, no matter how large the judgment is -- as long as the appellants post at least 30% of that amount in cash, a letter of credit, a certificate of deposit, or another cash equivalent held by the court.
If the appellee proves, by a preponderance of the evidence, that an appellant is dissipating assets outside the ordinary course of business to avoid paying the judgment, the court can require a bond up to the full amount of the judgment instead of the capped amount.
The section reaches actions already pending as well as new ones, and applies to judgments entered or reinstated on or after its effective date.
Frequently Asked Questions
Who does the bond cap in Section 2-1306 apply to?
Signatories to the tobacco Master Settlement Agreement, and their successors, parents, or affiliates, in civil litigation.
How much is an appeal bond capped at under this section?
$250,000,000 collectively for all appellants, regardless of the size of the judgment.
Is there a catch to qualify for the $250 million cap?
Yes, appellants must post at least 30% of that amount in cash or a cash equivalent held by the court.
Can a court require a bigger bond than the cap?
Yes, up to the full amount of the judgment, if the appellee proves the appellant is dissipating assets to avoid paying it.
Does this section apply to cases already underway?
Yes, it applies to pending actions as well as new ones, and to judgments entered or reinstated on or after its effective date.
Amendment History
(Source: P.A. 97-1145, eff. 1-18-13.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as: supersedeas bond illinois captobacco master settlement agreement appeal bond illinoisappeal bond cap illinois 250 million