PROCEEDINGS AGAINST A SECURITY PROVIDER

(a) Approval by Clerk. The clerk is authorized to approve the form of, and the security provider on, all security and undertakings required in any proceeding in this court, but the clerk's action may be suspended or altered or rescinded by the court upon cause shown. (b) Court Officers as Sureties. No clerk, marshal, member of the bar, or other officer or employee of this court may act as security provider or guarantor of any security or undertaking in any proceeding in this court.

An attorney who is not representing any party in the case or any related action and wishes to act as security provider in an individual capacity as a relative or close friend of a party to a proceeding in this court must first obtain permission from the court. (c) Supersedeas Bond. A supersedeas bond or other security staying execution of a money judgment shall be in the amount of the judgment plus interest at a rate consistent with 28 U.S.C. § 1961(a), plus an amount to be set by the court to cover costs and any award of damages for delay. The parties may waive the supersedeas bond or other security by stipulation without a court order.

(d) Form of Security. Security undertaking shall be signed and acknowledged by the party and the security providers. They shall refer to the statute, rule or court order pursuant to which they are given, state the conditions of the obligation, and contain a provision expressly subjecting them to all applicable federal statutes and rules and the jurisdiction of this court. (e) Security.

Except as otherwise provided by law or by order of the court, a security or similar undertaking must be secured by: (1) Deposit of Cash or Obligations - deposits of cash or obligations of the United States of a type acceptable as collateral by the Treasury Department of the United States under 31 C.F.R. § 225 in the amount of the bond, including certified checks payable to the “Clerk, U.S. District Court” issued within five (5) days of deposit with the clerk; or -39- (2) Guaranty of a Company or Corporation - guaranty of a company or corporation holding a certificate of authority to act as a security provider from the Commonwealth of Puerto Rico, and from the Secretary of the Treasury of the United States pursuant to 31 U.S.C. §§ 9304 et seq.; or (3) Guaranty of the Owner of Unencumbered Real Estate or Personal Property - guaranty of an individual resident of this district who owns unencumbered real or personal property within the United States worth the amount of the security in excess of legal obligations or exemptions. Property owned jointly is acceptable provided all joint owners execute the security undertaking; where an estate is the owner, all heirs must execute the bond. The clerk is not bound to accept as guarantee for bond properties having two or more mortgages. In addition, the following documents must be deposited with the clerk when real estate property is submitted as security: (A) the original of any outstanding bearer note to which the property is subject; (B) a certified copy of the deed of purchase and sale; (C) the lender’s mortgage balance certificate; (D) a property tax certification from the appropriate agency (the Puerto Rico Treasury Department or the Municipal Revenues Collection Center [“Centro de Recaudación de Impuestos Municipales” or “CRIM”] for property within the district of Puerto Rico); (E) a certification from the Registry of the Property or duly authorized municipal office; (F) an original appraisal of the property by a licensed appraiser; (G) a certified copy of a declaration of heirs or last will and testament.

(f) Modification of Security. The court, on its own initiative or on motion of a party, may alter the amount or terms of a security or similar undertaking at any time as justice requires. (g) Additional or Different Security. The court, on its own initiative or on motion of a party, may order a party to furnish additional or different security or require personal security providers to furnish additional justification. -40- (h) Execution of Security Undertaking and Deposit of Deed.

When real estate is posted as security for a bond or pledged as a condition of bail in a criminal case, a certified copy of the deed shall be deposited with the clerk. (i) Discharge. Upon satisfaction of the condition of the security or similar undertaking, the monies or obligations shall be returned to the owner by order of the court. -41-