2. What forms can security for costs take?

2. What forms can security for costs take? 

Under Order 23, rule 2 of the Rules of the High Court (Cap. 4A) or the Rules of the District Court (Cap. 336H), the court has a wide discretion to decide the form of security, as well as the time for providing it and any conditions attached to it. 

The most common form is payment into court, where the required sum is paid in cash or by banker’s draft. This is generally the simplest and most convenient method. 

The court may also accept a bank guarantee, provided it is in a form approved by the Registrar. In practice, this is often treated as the equivalent of a cash payment. 

Another possible form is a bond with sureties, where the security is backed by persons who are financially able to meet the obligation. 

In suitable cases, the court may accept a solicitor’s undertaking to pay the defendant’s costs. This may be particularly useful where the amount of security is moderate and the undertaking provides adequate protection. 

Security may also be provided by a charge over assets, such as shares or other identifiable property.