Securities and Exchange Commission v. Bank of America, N.A. et al

Filing 57

ORDER granting 56 Motion to Appoint Distribution Agent. Signed by District Judge Max O. Cogburn, Jr on 11/18/2016. (chh)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
v.

Civil Action No. 3:13-cv-447

BANK OF AMERICA, N.A., BANC OF
AMERICA MORTGAGE SECURITIES, INC.,
and MERRILL LYNCH, PIERCE, FENNER &
SMITH, INC. f/k/a BANC OF AMERICA
SECURITIES LLC,
Defendants.
ORDER APPOINTING DISTRIBUTION AGENT
This matter is before the Court on Plaintiff’s Unopposed Motion to Appoint a Distribution
Agent (the “Motion”) (#56). Having considered the Motion and the record and being otherwise
fully advised in the premises, for good cause shown the motion is HEREBY GRANTED.
The Court HEREBY ORDERS AND ADJUDGES as follows:
1. Garden City Group LLC is appointed to serve as the Distribution Agent for the Distribution
Fund to assist in overseeing the administration and distribution of the Distribution Fund in
coordination with the Securities and Exchange Commission’s (“Commission”) staff,
pursuant to the terms of a distribution plan to be approved by the Court. The Distribution
Agent shall coordinate with the Court-appointed Tax Administrator to ensure that the
Distribution Fund, a Qualified Settlement Fund (“QSF”) under Section 468B(g) of the
Internal Revenue Code, and related regulations, 26 C.F.R. §§1.468B-1 through 5, complies

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with all related legal and regulatory requirements, including but not limited to, satisfying
any reporting or withholding requirements imposed on distributions from the QSF.
2. The Distribution Agent shall perform the services described in the Motion in accordance
with the pricing schedule and cost proposal submitted to and approved by the Commission.
Such services may include, but are not limited to: distribution plan development, data
management, legal notification, call center support, claims administration, disbursing
payments to injured investors, and staff and financial reporting.
3. The Distribution Agent shall be paid reasonable fees and expenses for its services and such
fees and expenses shall be paid from the Distribution Fund. The Distribution Agent shall
submit invoices on a quarterly basis to Commission staff for submission to the Court for
approval and payment. The Distribution Agent’s fees and expenses may not be paid from
the Distribution Fund without prior approval of the Court.
4. Once the Distribution Plan is approved, the Distribution Agent will submit quarterly
progress reports to the Commission staff and when the distribution of funds has been
completed, a final accounting report, in a format to be provided by Commission staff, will
be submitted. Commission staff shall file the final accounting report with the Court once
it has been reviewed by Commission staff and the Commission staff has determined it has
no objections.
5. The Distribution Agent may be removed sua sponte at any time by the Court or upon
motion of the Commission and replaced with a successor. In the event the Distribution
Agent decides to resign, it will first give written notice to the Court and to Commission
staff of such intention, and the resignation, if permitted, will not be effective until the Court
appoints a successor.

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Signed: November 18, 2016

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