Equity Bond - Master / Referee / Receiver / Trustee in All States
Table of Contents
Brief Summary
When a court appoints you as a master, referee, receiver or trustee and orders a bond, you usually cannot take control of the property until the bond is filed. We write equity fiduciary bonds in the exact amount and form the appointing order calls for, so you can qualify and get to work on the assets.
An equity bond guarantees that a court appointed officer, such as a receiver, master, referee or trustee, will faithfully carry out the court's orders and account for the money and property placed in their hands. There is no fixed amount. The appointing court sets the bond in its order, usually based on the value of the assets the officer will control, and the bond is filed with the clerk of that court.
We can help with all All States bonds!
How to Apply for an Equity Bond:
- Get a copy of the order appointing you, showing the bond amount and the court.
- Provide the case caption, case number and a description of the assets you will control.
- Complete the bond application with your personal and professional information.
- Pay the premium and sign the bond.
- File the bond with the clerk of the appointing court within the time the order sets.
Detailed Information About the All States Equity Bond:
The amount comes from the order, not a statute
Equity bonds have no standard figure. The judge who appoints the receiver, master, referee or trustee decides whether a bond is needed and how large it must be, and writes that into the appointing order. Courts often size it to the cash and property the officer will hold. Read the order first. It will usually state the amount, who the bond runs to, and how soon it must be filed.
Federal equity receivers
In federal court, Rule 66 of the Federal Rules of Civil Procedure governs actions in which a receiver is appointed. It says the administration of an estate by a receiver or similar court appointed officer must follow historical federal practice or a local rule, so check the district's local rules as well as the order.
Under 28 U.S.C. 754, a receiver appointed over property located in more than one district gains complete jurisdiction and control of that property only upon giving bond as required by the court. The receiver must then file copies of the complaint and the appointing order in each district where property sits within ten days after the order is entered, or lose control of the property in that district. Under 28 U.S.C. 959, receivers and trustees must run the property under the valid laws of the state where it is located, just as an owner would.
State courts
State courts appoint receivers and other equity officers under their own statutes and court rules. The bond is filed with the clerk of the appointing court in the amount the judge orders. Confirm the required form and any local filing steps with that clerk before the bond is issued.
What the bond covers
The surety guarantees the officer will perform the duties of the appointment, follow the court's orders and properly account for the estate. If the officer mismanages or misappropriates assets, an injured party can seek recovery on the bond up to its amount, and the officer must repay the surety.
Cost
The premium is a percentage of the bond amount the court sets. The surety weighs the officer's credit, professional experience and the type of assets involved. Professional receivers and attorneys with a clean record generally get the best terms.
Eligibility and Requirements for an All States Equity Bond:
- Bond amount set by the appointing court.
- Bond conditioned on faithful performance of the appointment and compliance with court orders.
- Filing with the clerk of the court that made the appointment.
- Credit review and professional background check of the appointee.
- For federal receivers over property in several districts, compliance with 28 U.S.C. 754.
All States Equity Bond FAQs:
Whatever the appointing court orders. There is no statutory default for these bonds. The judge usually bases it on the value of the assets you will manage.
Usually not. A federal receiver over property in several districts gains control of that property only upon giving the bond the court requires under 28 U.S.C. 754. Many appointing orders say the same thing.
Parties harmed when the officer fails to follow the court's orders or mishandles the estate. The court supervises the claim, and the surety pays up to the bond amount.
It generally stays in force until the court approves your final account and discharges you. Ask the court for a discharge order when your work is done.
It is a percentage of the bond amount. The rate depends on your credit, experience and the kind of assets involved. We quote it once you send the order and application.
