A federal or state court has appointed a receiver to take custody of contested property — a business in financial distress, a partnership in dissolution, real estate subject to foreclosure, fraud-tainted assets under SEC enforcement. The receiver bond is the financial guarantee that the receiver will manage the receivership estate faithfully, preserving its value for the parties whose claims will be adjudicated. We write receiver bonds under FRCP 66 in every U.S. District Court and under each state's receivership statute.
Receivership is the equitable remedy a court invokes when it needs a neutral third party to take custody of contested property. The receiver is appointed to hold, manage, and preserve the property — sometimes also to operate a business, liquidate assets, distribute proceeds, or investigate fraud — while the underlying dispute proceeds to judgment.
Receiverships arise in many contexts: partnership dissolution where the partners cannot agree on dissolution mechanics, commercial mortgage foreclosure where the lender seeks a rents-and-profits receiver before completing foreclosure, marital dissolution where one spouse is dissipating community property, SEC enforcement where the Commission has obtained an injunction freezing fraud-tainted assets, creditor protection where a state-court analog to federal bankruptcy is invoked, shareholder derivative actions where corporate officers are alleged to have looted the company.
The receiver is an officer of the court — not a representative of any party. The receiver's duty runs to the court, which in turn holds the receiver accountable to all parties claiming interests in the receivership estate. The receiver inventories, values, manages, and (where authorized) liquidates the estate; accounts periodically; and distributes proceeds per the court's final order.
The receiver bond is the financial guarantee. If the receiver misappropriates, mismanages, or otherwise breaches duty, the bond pays the receivership estate up to the bond limit. The receiver then owes the surety reimbursement under indemnity. For federal receivers, FRCP 66 contemplates that the receiver "must give such bond as the court directs." State receivership statutes contain similar provisions.
Federal receivers operate under Federal Rule of Civil Procedure 66 and the inherent equity jurisdiction of the appointing district court. Rule 66 is brief: it provides that the district court has authority to appoint a receiver, that the receiver must give such bond as the court directs, that the federal practice is supplemented by the practice followed in the courts of the state where the property is located, and that an action in which a receiver is appointed must not be dismissed except by court order.
State receiverships operate under each state's receivership statute, often supplemented by equity practice. California has the most developed receivership practice in the country, codified at CCP §§564-571. Florida, Texas, New York, Illinois, and Delaware each have substantial receivership statutes. Other states rely more heavily on common law equity practice with judicial discretion.
SEC receiverships — appointed by federal district courts in SEC enforcement actions — are a specialized federal practice. The SEC typically obtains a temporary restraining order freezing the defendant's assets and asks the court to appoint a receiver to take custody, identify investors, and prepare a distribution plan. The receiver bond in these cases is typically substantial and may require coordination with the SEC's preferred receivership panel.
Receiver bond underwriting is professional-fiduciary-focused. Most receivers are licensed professionals — typically attorneys, CPAs, or specialized turnaround consultants — with experience in receivership practice and strong financial position. The underwriting profile reflects this: receiver bonds are typically uncollateralized for principals with established practice and clean appointment history.
The bond amount is set by the court at the time of appointment. For commercial receiverships, the amount typically equals 10–20% of the receivership estate value, with the court adjusting based on the receiver's specific authority (custody-only, custody-and-operate, custody-and-liquidate). For SEC receiverships and other large federal receiverships, the bond may run into the millions.
Three documents start the file: the order of appointment identifying the receiver and the receivership property, a summary of the receivership estate (assets, current operations, projected receipt and disbursement activity), and a professional resume / firm overview for the receiver principal. For first-time receivers or non-traditional appointees (e.g., business consultants without prior receivership experience), additional underwriting documentation is required.
Filing is with the court of appointment. Federal receivers file the bond with the district court clerk; state receivers file with the issuing trial court. We deliver bonds in PDF for direct e-filing the same business day for qualified files.
For SEC receiverships in particular, our underwriters work directly with the SEC's regional offices and the receivership counsel to ensure the bond form satisfies both the appointing court's requirements and any SEC-specific provisions for receiver financial accountability.
Send the order of appointment and a summary of the receivership estate. Professional fiduciary placements typically issue same business day.