Local Rule LBR 7067-2: Bonds

LBR 7067-2. Bonds

(a) Bond or Security. The court, on motion or of its own initiative, may order any party to file an original bond or additional security for costs in such an amount and so conditioned as the court by its order may designate.

(b) Qualifications of Surety. Subject to approval of the court and in compliance with the policy of the Administrative Office of the United States Courts (Guide to Judiciary Policy), bonds must be supported by acceptable corporate sureties, individual sureties, assets acceptable as security, or irrevocable letters of credit.

(1) Acceptable Corporate Sureties. Any corporate surety offered for a bond furnished to the judiciary must appear on the list contained in Treasury Department Circular 570 (Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies).

(2) Individual Sureties. On a case by case basis, the court may accept individual sureties.

(3) Assets Acceptable as Security. The only assets acceptable in place of a surety bond are:

(A) United States bonds or notes with a maturity date less than 5 years from the date of the contract, together with an agreement authorizing collection or sale in the event of default. The par value of the bonds or notes must be at least equal to the penal amount of the bond.

(B) A certified check, cashier's check, bank draft, postal money order, or currency. The deposit must be at least equal to the penal amount of the surety bond and payable to "Clerk, U.S. Bankruptcy Court".

(C) A bond secured by an Irrevocable Letter of Credit (ILC) in an amount equal to the penal sum required to be secured. A separate ILC is required for each bond.