Undertaking includes 1. Any obligation, whether or not the principal is a party thereto, which contains a covenant by a surety to pay the required amount, as specified therein, if any required condition, as specified therein or as provided in subdivision (c) section 2502, is not fulfilled; and 2. any deposit, made subject to the required condition, of the required amount in legal tender of the United States or in face value of unregistered bonds of the United States or of the state.
§ 2501.Undertaking; definition.
Article 25. Undertakings · Last amended 1963 · Last verified July 21, 2026
In one sentenceCPLR 2501 defines an undertaking as either a surety's written obligation to pay a set amount if a specified condition goes unmet, or a cash or bond deposit made subject to that same condition, establishing the two forms every bond posted in New York litigation can take.
Full Text of CPLR 2501
Plain-English Summary
Litigants post undertakings for all kinds of reasons — to secure a preliminary injunction, to stay enforcement of a judgment pending appeal, to back a fiduciary's performance. CPLR 2501 defines the term that runs through all of them. An undertaking is either of two things: a surety's covenant to pay a required amount if a required condition is not fulfilled, whether or not the principal (the party the obligation runs against) signs onto the instrument too, or a deposit of the required amount in cash or in the face value of unregistered United States or New York bonds, made subject to that same condition.
The distinction matters in practice. A traditional surety undertaking relies on a third party's promise to pay, backed by that surety's own creditworthiness. A deposit undertaking instead puts the money or bonds directly on the table, subject to being forfeited or returned depending on whether the condition is met. Both count as an undertaking under this article, and the sections that follow — governing sureties, liens, filing, and discharge — apply to either form.
Frequently Asked Questions
What is an undertaking in a New York lawsuit?
Under CPLR 2501, it is either a surety's written obligation to pay a set amount if a specified condition is not fulfilled, or a deposit of that amount in cash or in unregistered United States or New York state bonds, made subject to the same condition.
Is an undertaking the same thing as a bond?
An undertaking is the broader term used throughout the CPLR; a surety bond is one common way of satisfying it, but a cash or securities deposit satisfies the definition just as well.
Does the party who benefits from an undertaking have to sign it?
No. CPLR 2501 defines a surety-based undertaking as an obligation containing the surety's covenant to pay, whether or not the principal is a party to the instrument.
Can I post cash instead of getting a surety bond in a New York case?
Yes. CPLR 2501 recognizes a deposit of the required amount in legal tender of the United States, or in the face value of unregistered United States or New York state bonds, as a valid form of undertaking.
What determines whether an undertaking's condition has been met?
The condition is whatever the undertaking specifies, or, where none is specified, the default condition set out in CPLR 2502(c).
Advisory Committee Notes
(See also Advisory Committee Notes preceding this section under subheading “Definition”.) This section embodies the substance of CPA § 157, the first two sentences of § 564 and the first sentence of § 891 of the CPA, and RCP 25(1). The alternative of giving a cash deposit rather than a bond or undertaking is made generally applicable. Cf. CPA § 891. The words “required amount” and “required condition” refer to the requirements of the statute, rule or order which direct the giving of security. Paragraph 2 permits deposits of bonds of the state as well as of the United States.
Amendment History
Add, L 1962, ch 308, § 1, eff Sept 1, 1963.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
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