(California Court of Appeal) - Affirmed in part and reversed in part a decision concerning California's budget. The Governor and other state officials must retransfer $331 million from the state's General Fund to its National Mortgage Settlement Deposit Fund. The NMS Deposit Fund was created from monies California received from the settlement of a lawsuit it filed against large mortgage servicers in the wake of the subprime mortgage crisis that began in 2007. In affirming,the appeals court held that separation of powers principles did not preclude a court from ordering the instant return of these funds, which had been unlawfully appropriated for purposes inconsistent with the NMS.
Source: findlaw.com