IN RE COUNTY OF ORANGE

Bankruptcy Nos. SA 94-22272 JR, SA 94-22273 JR.

183 B.R. 609 (1995)

In re COUNTY OF ORANGE, a Political Subdivision of the State of California; Orange County Investment Pools, an Instrumentality of the County of Orange, Debtors. The FEDERAL NATIONAL MORTGAGE ASSOCIATION, Movant, v. COUNTY OF ORANGE, a political subdivision of the State of California; Orange County Investment Pools, an instrumentality of the County of Orange, Respondents.

United States Bankruptcy Court, C.D. California.

May 26, 1995.


Attorney(s) appearing for the Case

Isaac Pachulski, Stutman, Treister & Glatt, Los Angeles, CA, Sp. Reorganization Counsel, for debtors.

Patrick C. Shea, Pillsbury, Madison & Sutro, San Diego, CA, for Official Committee of Pool Participants.

Daniel H. Slate, Adams, Duque & Hazeltine, Los Angeles, CA, for Federal Nat. Mortg. Ass'n.

Mary L. Young, Murphy Weir & Butler, Los Angeles, CA, for Orange County Creditors Committee.

Alan H. Martin, Sheppard, Mullin, Richter & Hampton, Newport Beach, CA, for School Districts.

Katherine Butts Warwick, Pettit & Martin, Los Angeles, CA, for Newport Mesa Unified School Dist.

Paul R. Glassman, Los Angeles, CA, for Orange County Cities.

Marc J. Winthrop, Winthrop Couchot, Newport Beach, CA, for Irvine Unified School Dist.


MEMORANDUM OPINION

JOHN E. RYAN, Bankruptcy Judge.

Under California state law, certain governmental entities may deposit, or are required to deposit, excess funds into the county treasury. The county treasurer, in turn, is authorized to invest the funds in a variety of securities. Acting pursuant to this statutory authority, the Orange County Treasurer, Robert L. Citron (the "Treasurer"), commingled the funds...

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