Local Rule 151: SECURITY

RULE 151 (Fed. R. Civ. P. 65.1)

SECURITY

(a) Scope of Rule. Whenever a security, bond, or undertaking is required by federal statute, the Federal Rules of Civil, Criminal or Appellate Procedure, or by order of the Court, and the form or amount thereof is not otherwise specified by statute, rule, or order, the amount and form shall be as provided by this Rule. See 18 U.S.C. § 3141 et seq., 31 U.S.C. § 9301 et seq.; Fed. R. App. P. 7, 8; Fed. R. Civ. P. 65, 65.1; Fed. R. Crim. P. 46.

(b) Security for Costs. On its own motion or on motion of a party, the Court may at any time order a party to give a security, bond, or undertaking in such amount as the Court may determine to be appropriate. The provisions of Title 3A, part 2, of the California Code of Civil Procedure, relating to vexatious litigants, are hereby adopted as a procedural Rule of this Court on the basis of which the Court may order the giving of a security, bond, or undertaking, although the power of the Court shall not be limited thereby.

(c) Bond for Writ of Attachment. See Cal. Civ. Proc. Code § 481.010 et seq.

(d) Supersedeas Bond. When required, a supersedeas bond shall be 125 percent of the amount of the judgment unless the Court otherwise orders. See Fed. R. Civ. P. 62.

(e) Form of Bond. A security, bond, or undertaking shall be given, signed and acknowledged by the party offering it and by that party's surety. Every security, bond, undertaking, or deposit instrument shall state the conditions of the obligation and shall contain a provision expressly subjecting it to all applicable federal law.

(f) Corporate Surety. No security, bond, or undertaking with corporate surety shall be accepted unless the corporate surety is in compliance with the provisions of 31 U.S.C. §§ 9304-06, and there is, either attached to the face of the security, bond, or undertaking or on file with the Clerk, a duly authenticated power of attorney appointing the agents or officers executing such obligation to act on behalf of the corporate surety.

(g) Personal Surety. No security, bond, or undertaking with personal surety in a civil matter shall be accepted unless it is accompanied by affidavits in the form prescribed by sections 995.510 and 995.520 of the California Code of Civil Procedure. No Clerk, Marshal or deputy marshal, member of the Bar, or other officer or employee of the Court will be accepted as surety in this Court, absent express Court approval. The Court may, in its discretion, require that more than one personal surety be obligated on the security, bond, or undertaking.

(h) Cash, Negotiable Bonds of the United States. In lieu of corporate or personal surety, a party may deposit with the Clerk the required amount of lawful money or negotiable bonds of the United States accompanied by a written instrument, to be approved by the Court, executed and acknowledged by the party, setting forth the conditions upon which the deposit is made, and the fact that the Clerk may collect or sell the obligations and apply the proceeds, or the cash deposited, in the case of default as provided in the bond. Where the true owner is other than the party making the deposit, the instrument shall so state and shall be executed and acknowledged by the true owner. Upon exoneration of the deposit, it shall be returned by the Clerk to the depositor or, if the depositor is other than the true owner, then to the true owner.

(i) Personal and Real Property Bonds. If personal property is provided as security, it shall be accompanied by a security agreement and a financing statement, executed in conformity with the California Commercial Code. If real property is provided as security, a trust deed naming the Clerk as beneficiary and describing the property shall be deposited with the Clerk.

(j) Required Affidavit of Ownership. Any deposit of money or documents evidencing ownership of property shall be accompanied by an affidavit (accompanied by preliminary title report, litigation guarantee, or abstract from a title company, in the case of real property) that the property is unencumbered, or if encumbered, is encumbered in an amount specified, and that the property is of a specified value (assessed value, in the case of real property). See 31 U.S.C. § 9303; L.R. 150.

(k) Submission to Jurisdiction - Agent for Service of Process. Notwithstanding any provision of a security agreement to the contrary, all sureties or depositors of security subject themselves to the jurisdiction of this Court, irrevocably appoint the Clerk as their agent on whom any papers affecting their liability may be served, and consent that their liability shall be joint and several, that judgment may be entered against them in accordance with this obligation simultaneously with judgment against their principals, and that execution may therefore issue against their property. Notwithstanding appointment of the Clerk as agent for service of process, any person seeking judgment against any surety or depositor shall make a good faith effort to give actual notice to the surety or depositor of all actions or motions by which judgment is sought against the surety or depositor.

(l) Further Security or Justification of Personal Sureties. Upon reasonable notice to the party presenting the security, any other party for whose benefit it is presented may apply to the Court at any time for further or different security or for an order requiring personal sureties to establish the facts supporting their affidavits under sections 995.510 and 995.520 of the California Code of Civil Procedure.