§ 8.01-476.New execution after loss of property sold under indemnifying bond.

An indemnifying bond is a safety net an officer sometimes requires before selling property under execution when someone else claims an interest in it. Section 8.01-476 addresses what happens when that safety net gets used — when the property, or its value, ends up being recovered from the bond’s obligor or from a purchaser who has rights against the bond.

In that situation, the execution creditor is not left empty-handed just because the earlier sale is effectively undone. By motion, after reasonable notice to the debtor or the debtor’s personal representative, the creditor can obtain a new execution against the debtor. Critically, the debtor gets no credit for the amount the property sold for under the first execution, since that money was never retained to satisfy the debt. The motion must be filed within the time period set out in § 8.01-255.2.