Local Rule Civil Rule 65.1.2: Bonds and Sureties

Civil Rule 65.1.2 Bonds and Sureties a. When Required. A judge may, upon demand of any party, where authorized by law and for good cause shown, require any party to furnish security for costs which may be awarded against such party in an amount and on such terms as are appropriate. b. Qualifications of Surety. Every bond must have as surety either: (1) a corporation authorized by the Secretary of the Treasury of the United States to act as surety on official bonds under 31 U.S.C. §§ 9301 – 9306; (2) a corporation authorized to act as surety under the law of the State of California; (3) two individual residents in the district, each of whom owns real or personal property within the district of value sufficient to justify the full amount of the suretyship; or (4) a cash deposit of the required amount, made with the Clerk and filed with a bond signed by the principals. An individual who executes a bond as a surety pursuant to this subsection will attach an affidavit which gives the full name, occupation, residence and business address and demonstrations that the individual owns real or personal property within the district. After excluding property exempt from execution and deducing liabilities (including those which have arisen by virtue of suretyship on other bonds or undertakings), the real or personal property must be valued at no less than twice the amount of the bond. When real property is listed in a proposed surety's affidavit, or a trust deed on real property is proposed to be posted as security for a bond required under this rule, the prospective surety must provide either a title report showing title in the name of the surety; or an opinion letter by an attorney that the legal description on the deed of trust is accurate, and that the surety has title. The value of all real property or personal property listed in a proposed surety's affidavit or otherwise posted as security must first be approved by the magistrate judge or district judge. c. Court Officers as Sureties. No Clerk, marshal or other employee of the Court, nor any member of the bar representing a party in the particular action or proceeding will be accepted as surety on any bond or other undertaking in any action or proceeding in this court. Cash deposits on bonds may be made by members of the bar on certification that the funds are the property of a specified person who has signed as surety on the bond. Upon exoneration of the bond, such monies must be returned to the owner and not to the attorney. Trust deeds accepted by the Court must be recorded in the county where the real property is located. The trust deed must show in the upper-left hand corner the name of the attorney of record, address of this court, name of the party, and case number. The trust deed must show the United States of America as Beneficiary. Once recorded, the trust deed must be forwarded to the Clerk of Court. When exonerating a bond to release a trust deed and to reconvey it to the surety, releasing a passport, automobile title, or other real property, the order must be clearly entitled "order to exonerate a bond." A sample order is available from the Clerk's Office. d. Examination of Sureties. Any party may apply for an order requiring any opposing party to show cause why it should not be required to furnish further or different security, or to require the justification of personal sureties. e. Approval of Bonds by Attorney and Clerk (or Judge). 1. Attorney. Every recognizance, bond, stipulation or undertaking hereinafter presented to the Clerk or a judge of the Court for approval, where approval by the Court is required, must have appended thereto a certificate of the attorney for the party for whom the bond is being filed substantially in the following form: This bond has been examined and recommended for approval as provided in Civil Local Rule 65.1.2, and the within bond (is)(is not) required by law to be approved by a judge. Dated this day of , 20 Attorney Such endorsement by the attorney will signify to the Court that said attorney has carefully examined the said recognizance, bond, stipulation or undertaking, and that the attorney knows the contents thereof; and the purposes for which it is executed; that in the attorney's opinion the same is in due form, that the attorney believes the affidavits of qualification to be true and has determined whether the bond is required to be approved by a judge. 2. Clerk (or Judge) A recognizance, bond, stipulation or undertaking must further have appended thereto a statement of approval by the Clerk or judge, if approval by the judge is required, substantially as follows: I hereby approve the foregoing bond. Dated:___________________________________ , 20___________ ________________________________________________________ Clerk (or United States District Judge or Magistrate Judge) f. Bonds or Other Security. 1. Approval, Filing and Service. If eligible under Civil Local Rule 65.1.2, the bond or other security may be approved and filed by the Clerk. A copy of the bond or other security plus notice of filing must be served on all affected parties promptly. 2. Objections. The Court must determine objections to the form of the bond or other security or sufficiency of the surety. 3. Execution. Except where otherwise provided by Fed. R. Civ. P. 62, or order of the Court, execution may issue after thirty (30) days from entry of a judgment unless a bond or other security has been approved by the Clerk. g. Summary Judgment Against Sureties. 1. The Judgment. Every bond within the scope of Civil Local Rule 65.1.2 will contain the surety or sureties' consent that in case of the principal's, surety or sureties' default, upon notice of not less than twenty-eight (28) days the Court may proceed summarily and render judgment against them and award execution. 2. Service. Any indemnitee or party in interest who seeks the judgment provided by Civil Local Rule 65.1.2.g will proceed by motion and with respect to personal sureties and corporate sureties will make the service provided by Fed. R. Civ. P. 5(b) or 31 U.S.C. § 9306, respectively. h. Filing. 1. Filing of Security. Upon application of any party, and for good cause shown, the Court may require any plaintiff, any nonresident removing defendant, or any nonresident party to a civil action transferred to this court from another district to file security for costs. 2. Form of Security. The security for costs must consist of a bond in the sum of $250.00 or such other amount as the Court may order. It must secure the payment of all costs of the action which a party may ultimately be directed to pay to any other party. 3. By Other Parties. Upon good cause, the Court may order original or additional security to be given by any part.