Local Rule 9025-1: SURETIES
Bankr. E.D.N.Y. — General rule
Rule 9025-1 SURETIES
(a) Execution by Surety Only.
If a bond, undertaking, or stipulation is required, an instrument executed only by the surety shall be sufficient.
(b) Security for Bond.
Except as otherwise provided by law, every bond, undertaking, or stipulation referring to a bond shall be secured by:
(i) the deposit of cash or government bonds in the amount of the bond, undertaking, or stipulation;
(ii) the undertaking or guaranty of a corporate surety holding a certificate of authority from the Secretary of the Treasury; or
(iii) the undertaking or guaranty of two individual residents of the Eastern District or Southern District of New York, each of whom owns real or personal property within such district with an unencumbered value of twice the amount of the bond in excess of the surety's debts, liabilities, legal exemptions, and obligations on other bonds, guaranties, undertakings, or stipulations.
(c) Affidavit by Individual Surety.
In the case of a bond, undertaking, or stipulation executed by individual sureties, each surety shall attach an affidavit of justification, giving the surety's full name, occupation, and residence and business addresses, and showing that the surety is not disqualified from acting as an individual surety under subdivision (d) of this rule.
(d) Persons Who May Not Act as Sureties.
Members of the bar, administrative officers and employees of the Court, the marshal, and the marshal's deputies and assistants may not act as sureties in any pending case, adversary proceeding, or contested matter.
(e) Approval of Bonds of Corporate Sureties.
Except as otherwise provided by Bankruptcy Code §§ 303 and 322(b) and Bankruptcy Rule 2010, all bonds, undertakings, and stipulations of corporate sureties holding certificates of authority from the Secretary of the Treasury, may be approved by the Clerk when the amount of such bonds or undertakings has been fixed by Court order or statute.
CROSS-REFERENCE: E.D.N.Y. LBR 6005-1 REFERENCES: Bankruptcy Code §§ 303, 322(b); Bankruptcy Rule 2010