Local Rule Civ. RULE 66.1: RECEIVERSHIPS

Civ. RULE 66.1 RECEIVERSHIPS (a) Pursuant to Fed. R. Civ. P. 66, this Rule is promulgated for the administration of estates by receivers or similar officers appointed by the Court. Other than in administration of estates, any civil action in which the appointment of a receiver or similar officer is sought, or which is brought by or against such an officer, is to be governed by the Federal Rules of Civil Procedure and by these Rules. (b) The appointment or discharge of a receiver appointed either ex parte or pending a final hearing shall, as nearly as possible, follow procedures set forth in Fed. R. Civ. P. 65. The Court may require any receiver appointed to furnish a bond in such amount as deemed appropriate. (c) Upon appointment of a custodial or statutory receiver or similar officer, the Court shall designate one or more banking institutions as depositories in which shall be deposited, until the further order of the Court, all funds obtained by the receiver. A certified copy of the order shall be filed with each depository. Funds so deposited shall be withdrawn only by check or warrant, serially numbered, signed by the receiver. Each check or warrant shall have written on its face the abbreviated title and docket number of the case and a brief statement of the purpose for the disbursement. The receiver shall keep a record of all checks drawn and shall be responsible for determining the propriety of each disbursement. (d) Every receiver appointed pursuant to this Rule shall within 60 days after appointment file with the Clerk an inventory of the entire estate committed to his or her care, and of the manner in which funds of the estate are invested or deposited. If authorized to continue the operation of a business the receiver shall, on or before the 15th day of every month following appointment, file with the Clerk a report and summary of such operation based on sound accounting principles, showing all accruals and containing a statement of income and of profit and loss for the preceding month. If not authorized to continue the operation of a business the receiver shall, on or before the 15th day of the month following appointment and every three months thereafter (or more frequently if ordered by the Court), file with the Clerk a schedule of receipts and disbursements for such period and a statement from each depository showing the balance on hand. (e) In settling the final account, every receiver shall be charged with the property shown in the initial inventory and with all amounts collected in addition thereto and shall state the expenditures, other credits and balance on hand. The receiver shall set forth the manner in which such balance is invested and all changes in the assets with which he or she is charged which have accrued during the period covered by the account. (f) When an order is entered approving the final account of and discharging a receiver, the Court may authorize the destruction or other disposition of the books, papers and records of the business or property for which the receiver acted and may fix a date after which the receiver may destroy the financial papers and records on hand relating to his or her administration. No destruction shall be authorized by order unless it appears that notice of the application for such an order has been given to all parties in interest and to the Commissioner of IRS, Washington, D.C.; the District Director of IRS, Newark, N.J.; United States Attorney, Newark, N.J.; the State of New Jersey, Division of Taxation, Trenton, N.J.; and the Attorney General for the State of New Jersey, Trenton, N.J. (g) No receiver may employ an attorney, counsel or accountant except upon order of the Court supported by an affidavit or other document complying with 28 U.S.C. § 1746 of the receiver setting forth the necessity for the employment and an affidavit or other document complying with 28 U.S.C. § 1746 of the proposed attorney, counsel or accountant claiming no interest in the suit or any of the parties thereto in any way which would disqualify that person from serving the receiver in good faith as a fiduciary for all of the beneficial owners and creditors of the estate. (h) In fixing the compensation of a receiver, attorney, accountant, auctioneer or other officer, the Court shall consider the value of the actual services rendered and the pain, trouble and risk incurred by them in the discharge of their duties relative to the estate and shall be guided by the standards fixed for compensation of such officers in connection with proceedings under the Bankruptcy Code. Amended: June 19, 2013.