Local Rule Local Civil Rule 65: Sureties – Security – Bondsman

LOCAL CIVIL RULE 65

SURETIES – SECURITY – BONDSMAN

(A) Security: Except as otherwise provided by law or by agreement of the parties, every bond, undertaking, or stipulation must be secured by (1) the deposit of cash or negotiable government bonds, undertaking, or stipulation; (2) the undertaking or guaranty of a corporate surety doing business in Virginia and holding a certificate of authority from the Secretary of the Treasury; or (3) the undertaking or guaranty of sufficient solvent sureties, residents of Virginia, who own real or personal property within the State of Virginia worth double the amount of the bond, undertaking, or stipulation over all debts and liabilities, and over all obligations assumed on other bonds, undertakings or stipulations, and exclusive of all legal exemptions. A husband and wife may act as surety on a bond, but they shall be considered as only one surety. If a bond, undertaking, or stipulation is executed by individual sureties, each surety shall execute an affidavit of justification, giving the full name, occupation, residence, and business address, showing that he or she is qualified as an individual surety under the provisions of this Local Rule.

(B) Prohibited Sureties: Members of the bar, administrative officers or employees of this Court, and the United States Marshal, his deputies or assistants, shall not act as a surety in any civil action. A member of the bar may execute a bond as attorney-in-fact upon presenting a properly executed power of attorney.

(C) Powers of Clerk: To approve security, the Clerk is authorized to approve all stipulations, bonds, guaranties, or undertakings, in the penal sum prescribed by statute or order of the Court, whether the security be property or personal or corporate surety. If the bond is offered by a professional bondsman or a person qualifying under (A)(3) above, approval of the Court, magistrate judge, or bankruptcy judge shall be obtained for penal sums in excess of $25,000.00.

(D) Professional Bondsman: Any person desiring to become surety for compensation (professional bondsman) on any bond required to be given in any matter before the Court or any of its magistrate judges or bankruptcy judges, or in any other matter under the jurisdiction of this Court, shall, before attempting to act, obtain approval of the Court. Application for such approval shall be by petition, duly sworn to, setting forth:

(1) That the applicant is of good moral character, is a citizen of the Commonwealth of Virginia, and residing within the boundaries of the Eastern District of Virginia.

(2) His or her full name, business and home address, marital status, and the nature of any business conducted by such person.

(3) Whether he or she is licensed in Virginia and/or any of the cities or counties of Virginia to act as a professional bondsman and, if so, where and whether such person has qualified in any of the Courts of Virginia to so act.

(4) Statement (signed by the owners) of assets (including both real estate and personal estate) and liabilities, and as to real estate, its description, location, how titled and any encumbrances thereon. If a partnership is involved, a statement of the assets of both the partnership and the individual parties must be included, signed by owners of the assets. Assets owned by third parties or jointly with parties who are not partners will not be considered.

(5) A list of any and all bonds on which such person is the surety, the nature of the bond, and where lodged.

(6) That such person will quarter-annually file with the Court a list of all bonds upon which he or she is surety, whether any bonds are in default, whether any action on such bond has been instituted, and whether there are any unpaid judgments against such person.

(7) A certificate from a Court of record, or the Chief of Police of the home city or town, or of two other responsible citizens, that such person is of good moral character.

(8) A list of any and all criminal convictions, except traffic violations, and whether there are any pending indictments or warrants against such person.

(9) If the information provided under paragraph (4) above reveals a total net worth of at least $200,000.00, and the applicant is otherwise satisfactory, an order may be entered permitting the applicant to act until further order of the Court. Should at any time the total net worth stated in paragraph (4) fall below $200,000.00 as shown on any quarterly report, or the applicant have more bonds outstanding than can be adequately covered, in the Court's opinion, by the net worth shown, or the applicant fail to file on time any quarterly report, or if for any reason the Court should deem the security offered by the applicant to be inadequate or outstanding bonds not adequately secured, the Court may terminate the right of the applicant to act as surety on any bond, without notice.