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SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549



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FORM 10-Q



(Mark One)

|x |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|- |  | -------------------------------------------------------

| |  | SECURITIES AND EXCHANGE ACT OF 1934
| |  | -----------------------------------



| |  | For the Quarterly Period Ended March 31, 2003
| |  | ---------------------------------------------



OR



| ̈ |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|- |  | --------------------------------------------------------

| |  | SECURITIES EXCHANGE ACT OF 1934
| |  | -------------------------------



| |  | For the transition period from  to
| |  | ----------------------------------



Commission file number 333-44155



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COAST
FEDERAL LITIGATION CONTINGENT PAYMENT RIGHTS TRUST

(Exact name of registrant as specified in its charter)



|DELAWARE                                                       |  | 13-7140975                          
|-------------------------------------------------------------- |  | ------------------------------------
|(State or other jurisdiction of Incorporation or organization) |  | (I.R.S. Employer Identification No.)





|E.A. Delle Donne Corporate Center, Montgomery Building, 1011 Centre Road, Wilmington,
Delaware |  | 19805-1266
|---------------------------------------------------------------------------------------------- |  | ----------
|(Address of principal executive offices)                                                       |  | (Zip Code)



(302)
636-3300

(Registrants telephone number, including area code)



(Former name, former address and former fiscal year, if
changed since last report.)



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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No ̈



As of May 1, 2003 the registrant had 20,703,817 Contingent Payment Rights Certificates, no par value,
outstanding.



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PART I    FINANCIAL INFORMATION



Item 1. FINANCIAL STATEMENTS



COAST FEDERAL LITIGATION CONTINGENT PAYMENT RIGHTS TRUST

Unaudited Statement
of Financial Condition



|                                                                          |  | March 31, 2003 |             |   | December 31, 2002 |  
|------------------------------------------------------------------------- |  | -------------- | ----------- | - | ----------------- | -
|ASSETS                                                                    |  |                |             |   |                   |  
|Cash in bank                                                              |  | $              | 3,537,674   |   |                   | $
|Other assets                                                              |  |                | 4,500       |   |                   |  
|                                                                          |  |                |             |   |                   |  
|Total Assets                                                              |  | $              | 3,542,174   |   |                   | $
|                                                                          |  |                |             |   |                   |  
|LIABILITIES AND CERTIFICATEHOLDERS EQUITY                                |  |                |             |   |                   |  
|Expense fund                                                              |  | $              | 19,884,294  |   |                   | $
|Deferred Litigation Trustee fees                                          |  |                | 3,640,000   |   |                   |  
|Other liabilities                                                         |  |                | 6,866,903   |   |                   |  
|                                                                          |  |                |             |   |                   |  
|Total Liabilities                                                         |  |                | 30,391,197  |   |                   |  
|                                                                          |  |                |             |   |                   |  
|Certificateholders Equity                                                |  |                |             |   |                   |  
|Certificates, no par value, 20,703,817 authorized, issued and
outstanding |  |                |            |   |                   |  
|Accumulated deficit                                                       |  |                | (26,849,023 | ) |                   |  
|                                                                          |  |                |             |   |                   |  
|Total Certificateholders Equity                                          |  |                | (26,849,023 | ) |                   |  
|                                                                          |  |                |             |   |                   |  
|                                                                          |  | $              | 3,542,174   |   |                   | $
|                                                                          |  |                |             |   |                   |  

See accompanying Notes to Unaudited Financial Statements.



2



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COAST FEDERAL LITIGATION CONTINGENT PAYMENT RIGHTS TRUST

Unaudited Statement of Operations



|                                    |  | Three Months Ended March 31, |         
|----------------------------------- |  | ---------------------------- | --------
|                                    |  | 2003                         |         
|REVENUE                             |  | $                            |        
|EXPENSES                            |  |                              |         
|Interest expense                    |  |                              | (436,786
|Litigation trustee fees             |  |                              | (200,000
|Litigation and trust administration |  |                              | (65,000 
|Insurance                           |  |                              | (34,082 
|Legal fees                          |  |                              | (10,234 
|Premises and equipment              |  |                              | (7,802  
|Other                               |  |                              | (17,561 
|                                    |  |                              |         
|Total Expenses                      |  |                              | (771,465
|                                    |  |                              |         
|Net Loss                            |  | $                            | (771,465
|                                    |  |                              |         
|Net Loss Per Certificate            |  | $                            | (0.04   
|                                    |  |                              |         



See
accompanying Notes to Unaudited Financial Statements.



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COAST FEDERAL LITIGATION CONTINGENT PAYMENT RIGHTS TRUST

Unaudited Statement of Cash Flows



|                                                                        |  | Three Months Ended March 31, |          
|----------------------------------------------------------------------- |  | ---------------------------- | ---------
|                                                                        |  | 2003                         |          
|Cash flows from operating activities:                                   |  |                              |          
|Net loss                                                                |  | $                            | (771,465 
|Adjustments to reconcile net loss to cash used in operating activities: |  |                              |          
|Decrease in other assets                                                |  |                              | 33,420   
|Increase in deferred litigation trustee fees                            |  |                              | 200,000  
|Increase in other liabilities                                           |  |                              | 358,699  
|                                                                        |  |                              |          
|Total adjustments                                                       |  |                              | 592,119  
|                                                                        |  |                              |          
|Net cash used in operating activities                                   |  |                              | (179,346 
|                                                                        |  |                              |          
|Net decrease in cash                                                    |  |                              | (179,346 
|Cash at beginning of period                                             |  |                              | 3,717,020
|                                                                        |  |                              |          
|Cash at end of period                                                   |  | $                            | 3,537,674
|                                                                        |  |                              |          
|Supplemental disclosure of cash flow information:                       |  |                              |          
|Cash paid during the period for interest                                |  | $                            |         
|                                                                        |  |                              |          



See
accompanying Notes to Unaudited Financial Statements.



4



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COAST FEDERAL
LITIGATION CONTINGENT PAYMENT RIGHTS TRUST

Notes to Unaudited Financial Statements

March 31, 2003



The Coast Federal Litigation Contingent Payment Rights Trust (the CPR Trust) is a statutory business trust created under Delaware law on
January 8, 1998. The CPR Trust was created by Coast Savings Financial, Inc. (Coast) in connection with its merger, effected on February 13, 1998, with and into H. F. Ahmanson & Co. (Ahmanson)for the purpose of holding the
commitment agreement entered into by Ahmanson and the CPR Trust, dated as of February 13, 1998 (the Commitment). The Commitment represents Ahmansons obligation to pay to the CPR Trust an amount equal to any net after-tax proceeds
(the Commitment Amount), that may be received by Coasts wholly-owned subsidiary, Coast Federal Bank, FSB (Coast Federal) (or its successor), from Coast Federals regulatory capital litigation claims against the
United States government in the case entitled Coast Federal Bank, FSB v. United States, No. 92-466C (Cl. Ct. filed July 9, 1992) (the Litigation). On April 23, 2003, the Litigation Trustees instructed Coast Federal not to continue to
prosecute the Litigation. As a result of the instruction not to continue to prosecute the Litigation, pursuant to the terms of the CPR Trust Agreement the Litigation will terminate, no award of monetary damages will be made to Coast Federal, no
Commitment Amount will be paid by Ahmanson (or its successor) to the CPR Trust, and therefore no monetary payment will be made from the CPR Trust to holders of the contingent payment rights certificates (the CPR Certificates).



Further, pursuant to the terms of the CPR Trust Agreement, on
May 23, 2003, 30 days after the date of the Litigation Trustees instruction to Coast Federal not to continue to prosecute the Litigation, the CPR Trust will dissolve and upon the filing of a certificate of cancellation with the Secretary of State of
the State of Delaware, the CPR Trust will terminate. Upon the termination of the CPR Trust, by operation of law the CPR Certificates will cease to exist. The unaudited financial statements of the CPR Trust included herein reflect all adjustments,
consisting only of normal recurring adjustments, which are, in the opinion of the Litigation Trustees, necessary to present a fair statement of the results for the interim periods indicated. The Litigation Trustees are the four senior executives of
Coast with knowledge of the facts underlying the Litigation, which were retained by the CPR Trust as Litigation Trustees. Certain information and note disclosures normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations for the three months ended March 31, 2003, are not necessarily
indicative of the results of operations to be expected for the remainder of the year.



These financial statements should be read in conjunction with the financial statements and notes thereto included in the CPR Trusts annual report on Form 10-K for the year ended December 31, 2002.



5



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Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS



The following discussion should be read in conjunction with (1) the Registration Statement on Form S-1 with respect to the CPR Certificates referred to
herein filed by Coast Savings Financial, Inc. (Coast) with, and declared effective by, the Securities and Exchange Commission (the SEC) on January 13, 1998 (SEC File Number 333-44155), and (2) the Form 10-K Annual Report
filed by the CPR Trust with the SEC for the year ended December 31, 2002.



GENERAL



The
Coast Federal Litigation Contingent Payment Rights Trust (the CPR Trust) is a statutory business trust created under Delaware law on January 8, 1998. The CPR Trust was created by Coast in connection with its merger, effected on February
13, 1998 (the Merger), with and into H. F. Ahmanson & Co. (Ahmanson), for the purpose of holding the Commitment Agreement entered into by Ahmanson and the CPR Trust, dated as of February 13, 1998 (the
Commitment). The Commitment represents Ahmansons obligation to pay to the CPR Trust an amount equal to any net after-tax proceeds, as more particularly defined in the CPR Trust Agreement referred to below (the Commitment
Amount), that may be received by Coasts wholly-owned subsidiary, Coast Federal Bank, FSB (Coast Federal) (or its successor), from Coast Federals regulatory capital litigation claims against the United States government
in the case entitled Coast Federal Bank, FSB v. United States, No. 92-466C (Cl. Ct. filed July 9, 1992) (the Litigation). Subsequent to the merger, Ahmanson merged Coast Federal with and into Ahmansons wholly-owned subsidiary, Home
Savings of America, FSB (Home Savings), with Home Savings being the successor institution. Ahmanson merged into Washington Mutual, Inc. (WAMU) on October 3, 1998, and Home Savings was thereafter merged into WAMUs
wholly-owned subsidiary, Washington Mutual Bank, F.A. (Washington Mutual).



The governing instrument of the CPR Trust is the Amended and Restated Declaration of Trust, dated as of February 13, 1998 (the CPR Trust Agreement), entered into among Coast, the Litigation Trustees, Bankers
Trust Company (the Institutional Trustee) and Bankers Trust (Delaware) (the Delaware Trustee). Pursuant to the CPR Trust Agreement, the four senior executives of Coast with knowledge of the facts underlying the Litigation
were appointed as Litigation Trustees of the CPR Trust, and were given full authority to make all decisions on behalf of Coast Federal (and its successors) with respect to the prosecution and resolution of the Litigation.



The assets of the CPR Trust consist solely of the Commitment and the right to
draw on amounts in the Expense Fund for purposes of funding expenses of the CPR Trust, including expenses of the Litigation, fees and expenses of the Litigation Trustees and all administrative expenses. Under the CPR Trust Agreement, Ahmanson agreed
to provide the sum of $19,884,294 (which is equal to $20 million less expenses related to the Litigation incurred by Coast Federal between September 1, 1997 and February 13, 1998) (the Expense Fund) to fund the Litigation and other
expenses of the CPR Trust, which amount is to be reimbursed to Ahmanson from any proceeds of the Litigation, including any amounts received in settlement of the Litigation, prior to the payment of any amounts to holders of the Contingent Payment
Rights Certificates (the CPR



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Certificates). The
Expense Fund is on deposit in a non-interest bearing demand deposit account in the name of the CPR Trust at Washington Mutual.



TERMINATION OF LITIGATION; DISSOLUTION OF TRUST



As described more fully below under Proceedings Leading to Trial, on April 23, 2003, the Litigation
Trustees instructed Coast Federal not to seek certiorari to the United States Supreme Court (the Supreme Court) in response to a ruling adverse to Coast Federal and in favor of the government entered by the United States Court of
Appeals for the Federal Circuit (the Court of Appeals) on March 24, 2003, and further instructed Coast Federal not to continue to prosecute the Litigation. Pursuant to the terms of the CPR Trust Agreement, as a result of the instruction
not to continue to prosecute the Litigation, the Litigation will terminate, no award of monetary damages will be made to Coast Federal, no Commitment Amount will be paid by Ahmanson to the CPR Trust, and therefore no monetary payment will be made
from the CPR Trust to holders of the CPR Certificates.



Further,
pursuant to the terms of the CPR Trust Agreement, on May 23, 2003, 30 days after the date of the Litigation Trustees instruction to Coast Federal not to continue to prosecute the Litigation, the CPR Trust will dissolve and upon the filing of a
certificate of cancellation with the Secretary of State of the State of Delaware, the CPR Trust will terminate. Upon the termination of the CPR Trust, the CPR Certificates will cease to exist by operation of law.



In addition, the CPR Trust has been notified by The NASDAQ National Market
(NASDAQ) that NASDAQ will terminate the NASDAQ trading designation for the CPR Certificates on May 23, 2003, the date of the CPR Trusts dissolution. Authorized Trading in the CPR Certificates will terminate on that date.



THE LITIGATION



The following description of the Litigation does not purport to be a complete
description of the legal and factual issues presented, the court opinions rendered or the relevant law, and the description is in all respects qualified by reference to the documents filed in the Litigation, such opinions and the relevant law.



On July 9, 1992, Coast Federal commenced litigation entitled
Coast Federal Bank, Federal Savings Bank v. United States, Civil Action Number 92-466C, against the United States in the U.S. Claims Court (now the U.S. Court of Federal Claims, hereinafter, the Claims Court) alleging that the United
States is in breach of a contract with Coast Federal and has unlawfully taken Coast Federals property without just compensation or due process of law in violation of the U.S. Constitution.



As further described below, Coast Federals claims arose from changes
with respect to the rules for computing Coast Federals regulatory capital that were mandated by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) and certain regulations promulgated thereunder.



On April 10, 1987, Coast Federal acquired substantially all of
the assets and liabilities of Central Savings and Loan Association (Central) from the Federal Savings and Loan Insurance Corporation (the FSLIC) in a supervisory transaction (the Acquisition) that Coast Federal
alleges was induced and arranged by the FSLIC and the Federal Home Loan Bank Board (FHLBB). As part of the Acquisition, Coast Federal entered into a contract with the FSLIC (the



7



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Assistance
Agreement) under which the FSLIC made a cash contribution to Coast Federal in the amount of $298.3 million (the Capital Credit). In the Litigation, Coast Federal alleges that the Assistance Agreement and certain resolutions and a
forbearance letter issued by the FHLBB in connection with the Assistance Agreement each expressly provided that the Capital Credit was to be treated as a permanent addition to Coast Federals regulatory capital. Coast Federal further alleges
that such treatment of the Capital Credit for regulatory capital purposes was essential to inducing Coast Federal to consummate the Acquisition.



Pursuant to FIRREA, which became effective on August 9, 1989, the FSLIC and the FHLBB were eliminated and were replaced as the regulators of federally
insured savings institutions by the Office of Thrift Supervision (the OTS). In regulations implementing FIRREA (the Capital Regulations) and subsequent actions, the OTS took the position that the Capital Credit should be
classified as supervisory goodwill, as defined in the Capital Regulations, which action resulted in an immediate exclusion of the Capital Credit from one of the three measures of Coast Federals regulatory capital, and effected a five-year
phase-out of the Capital Credit from such inclusion in the other two measures.



Coast Federal alleges that FIRREA and the Capital Regulations constituted a breach by the United States of its contractual commitment regarding the regulatory capital treatment of the Capital Credit and an unlawful taking of Coast
Federals property rights in the Capital Credit. Coast Federal seeks damages for this breach of the contract by the United States.



PROCEEDINGS LEADING TO TRIAL



Following various pre-trial proceedings in the Litigation, on August 23, 2000, the government filed with the Claims Court a motion seeking summary
judgment denying the damage claims asserted by Coast Federal. The government sought a summary judgment holding that (i) Coast Federals expectancy damages claims are too remote, speculative, uncertain and unforeseeable as a matter of law, (ii)
Coast Federal is barred from recovering expectancy damages in any event because it failed to mitigate its damages, and (iii) Coast Federal has overstated the amount of contractual regulatory capital taken from it as a result of FIRREA because such
capital was effectively required under generally accepted accounting principles to be amortized over a period no greater than 12.7 years and was not a permanent addition to Coast Federals regulatory capital. On September 13, 2000, Coast
Federal filed an opposition and cross-motion for partial summary judgment with the Claims Court that asked the Claims Court to reject the governments motion for summary judgment and requested that the Claims Court enter partial summary
judgment for Coast Federal that (i) the capital credit received by Coast Federal was a permanent addition to Coast Federals regulatory capital, and (ii) the damages suffered by Coast Federal from the governments breach of contract were
foreseeable.



In an order dated December 28, 2000 (the
December 2000 Order), Judge Hewitt issued a ruling on the governments motion and Coast Federals cross-motion for summary judgment. The Claims Court held in part for the government, ruling that (i) Coast Federals capital
credit in the amount of $299 million was not a permanent addition to Coast Federals regulatory capital and was to have been amortized over a period of 12.7 years, and (ii) Coast Federal may not claim increased deposit costs as wounded
bank damages. It also held in part for Coast Federal, ruling that (i) Coast Federals expectancy damages were not unforeseeable, and (ii) Coast Federal is not barred from recovering expectancy damages because of a failure to mitigate.



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On October 2, 2001, Coast
Federal filed a motion for reconsideration of the Claims Courts December 2000 Order holding that Coast Federals capital credit in the amount of $299 million was not a permanent addition to Coast Federals regulatory capital and was
to have been amortized over a period of 12.7 years. In its motion, Coast Federal stated that it would not be able to prove damages from the governments breach of Coast Federals contractual right to a capital credit if that right was
limited as contemplated by the December 2000 Order. Coast Federals motion further stated that it understood and contemplated that, if the Claims Court did not reconsider the December 2000 Order, the Claims Court would enter a final judgment
awarding no damages to Coast Federal, and that Coast Federal would appeal that judgment for purposes of seeking appellate review of the December Order.



By order dated October 18, 2001, the Claims Court entered judgment in favor of the government. The Claims Court ruled that no further proceedings in the
Claims Court were necessary or appropriate in light of Coast Federals statement that Coast Federal could not prove damages under its contract with the government as interpreted by the Claims Court in the December 2000 Order.



On February 4, 2002, Coast Federal filed its appeal brief with the Court of
Appeals seeking reversal of the December 2000 Order. Coast Federal maintained that it had a contractual right to a permanent, nonamortizing $299 million capital credit and that the governments breach of that right inflicted substantial damages
that Coast Federal would pursue in full on remand if the Court of Appeals accepts Coast Federals view of the scope of its contractual rights. On March 19, 2002, the government filed its response to Coast Federals appeal. In its response,
the government alleged that (i) the Court of Appeals lacked jurisdiction over the appeal because, the government claims, Coast Federal had failed to prosecute its remaining claim for damages after the December 2000 Order, thus rendering the appeal
interlocutory and (ii) the Claims Court correctly held in its December 2000 Order that all of the goodwill acquired by Coast Federal in connection with its acquisition of Central was required to be amortized over a 12.7 year period. Coast Federal
filed its reply to the governments response on April 5, 2002. On July 11, 2002, a three member panel of the Court of Appeals heard oral argument of the appeal.



By opinion dated October 8, 2002, the three member panel, with one member dissenting, reversed the portion of the December
2000 Order which Coast Federal had appealed, held that the $299 million of regulatory capital represented by the Capital Credit was intended and understood by both Coast Federal and the government to be non-amortizing. The Court of Appeals ordered
the case to be remanded to the Claims Court for further proceedings to determine the amount of damages due to Coast Federal.



On December 2, 2002, the government filed with the Court of Appeals a Petition for Rehearing and Suggestion for Rehearing en banc seeking to have
the Appeal reheard by the entire Court of Appeals because, in the governments opinion, the three member panels decision was contrary to results reached in two cases in other Federal Circuits and to decisions barring permanent
contractual obligations absent clear and unequivocal language. In addition, the government argued that the Appeal involves an exceptionally important question in that other Winstar related claims against the government may be affected by the
Court of Appeals decision.



On February 14, 2003, the Court
of Appeals issued an order granting the governments Petition for Rehearing en banc. The order vacated the judgment and original opinion of the three member panel issued on October 8, 2002, in favor



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of Coast Federal, and provides
that the entire Court of Appeals sitting en banc would decide the Appeal. On March 24, 2003, by a vote of 12 to zero, the Court of Appeals sitting en banc issued a ruling affirming the Claims Courts December 2000 Order
which held that Coast Federals capital credit in the amount of $299 million was to have been amortized over a period of 12.7 years.



The only option that Coast Federal had to pursue the Litigation further was to file a petition for certiorari with the United States Supreme Court.
After extensive discussions with legal counsel responsible for prosecuting the Litigation regarding the Court of Appeals unanimous 12 to 0 en banc decision in favor of the government, the factors which the Supreme Court considers in
determining whether to grant a petition for certiorari, and such counsels recommendation that a petition for certiorari not be filed, the Litigation Trustees instructed Coast Federal not to proceed with the filing of a petition
for certiorari and not to continue to prosecute the Litigation.



DAMAGES



As a
result of the termination of the Litigation, no award of monetary damages will be made to Coast Federal, no Commitment Amount will be paid by Ahmanson to the CPR Trust, and therefore no monetary payment will be made from the CPR Trust to holders of
the CPR Certificates.



MANAGEMENT OF THE LITIGATION



The Litigation
Trustees are Ray Martin, Robert L. Hunt II, Norman H. Raiden and James F. Barritt, who at the time of the Merger were the four senior Coast executives with knowledge of the facts underlying the Litigation. Mr. Martin, Mr. Hunt and Mr. Barritt were
officers of Coast and Coast Federal both at the time of the agreement with the federal government to treat certain amounts as a permanent addition to Coast Federals regulatory capital in connection with Coast Federals acquisition of
Central, and also at the time of the alleged breach of the agreement by the federal government, which gave rise to the claims underlying the Litigation. Mr. Martin, Mr. Hunt and Mr. Barritt, together with Mr. Raiden (who joined Coast soon after the
alleged breach of the agreement by the federal government), had been involved in the prosecution of the Litigation prior to the Merger.



Pursuant to the CPR Trust Agreement, the Litigation Trustees have the sole and exclusive right to instruct Coast Federal and its successors with respect
to the prosecution of the Litigation. This includes all decisions as to retention, dismissal, terms of engagement of existing or new counsel, whose retention may involve fees that are partly contingent, and other advisors. The CPR Trust Agreement
also provides that the Litigation Trustees have the right, in their sole discretion, to instruct Coast Federal and its successors to dismiss, settle, or cease prosecution of the Litigation at any time and on any terms. Ahmanson, including any
successor, is required by the CPR Trust Agreement to cause Coast Federal and its successors to follow such instructions from the Litigation Trustees unless such instructions are unreasonable.



The CPR Trust Agreement provides that as compensation the CPR Trust will pay
each Litigation Trustee, during the term of his service as a Litigation Trustee, fees of $400,000 per year for five years, plus reimbursement of all reasonable out-of-pocket expenses. The five-year period ended on February 13, 2003, and subsequent
to that date the Litigation Trustees are entitled to a fee of $200 per hour for their services until termination of the CPR Trust.



10



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Pursuant to the CPR Trust
Agreement, each Litigation Trustee may, but is not obligated to, defer all or part of his compensation until 30 days after the earliest to occur of (i) the date on which he elected to receive such deferred compensation, (ii) the date he ceases to be
a Litigation Trustee, and (iii) the date of the receipt of the Commitment Amount in full by the CPR Trust. Any Litigation Trustee electing to so defer will be entitled to receive the compensation he deferred plus an amount, calculated on a monthly
basis during the period of deferral (and included in the amount deferred), equal to the product of the monthly balance of the amount deferred and an annual rate equal to the Reference Rate, as defined in the CPR Trust Agreement, plus 250 basis
points. Each of the Litigation Trustees has elected to defer 100% of his 2003 compensation.



SUMMARY FINANCIAL INFORMATION



The CPR Trust has no revenues. The Expense Fund is the CPR Trusts only source of funding for the payment of the expenses of its operations. The CPR
Trusts expenses include the costs of prosecuting the Litigation (including the fees and expenses of counsel, experts, support staff and consultants), compensation of the Institutional Trustee, the Delaware Trustee and the Litigation Trustees,
the CPR Trusts indemnification obligations, liability insurance for the CPR Trusts indemnification obligations and any liabilities of the Litigation Trustees.



Following is a statement that details the activity in the Expense Fund and expenses that have been accrued but not yet paid
as of or for the three months ended March 31, 2003.



|                                                                                                                                     |  | At or for the Three Month Ended March 31, 2003 |           
|------------------------------------------------------------------------------------------------------------------------------------ |  | ---------------------------------------------- | ----------
|Expense Fund balance available for future expenses as of December 31, 2002, before
consideration of deferred Litigation Trustee fees |  | $                                              | 3,612,229 
|Disbursements:                                                                                                                       |  |                                                |           
|Litigation Trustee fees                                                                                                              |  |                                                | (38,333   
|Litigation and trust administration                                                                                                  |  |                                                | (65,000   
|Outside legal counsel and expert witness fees                                                                                        |  |                                                | (23,234   
|Premises and equipment                                                                                                               |  |                                                | (7,802    
|Office and other expenses                                                                                                            |  |                                                | (50,016   
|Accrued expenses:                                                                                                                    |  |                                                |           
|Decrease in accrual for Litigation Trustee fees                                                                                      |  |                                                | 38,333    
|Decrease in accrual for outside legal counsel and expert witness fees                                                                |  |                                                | 13,000    
|Decrease in other accrued expenses                                                                                                   |  |                                                | 31,793    
|Increase in deferred legal fees                                                                                                      |  |                                                | 5,037     
|                                                                                                                                     |  |                                                |           
|Expense Fund balance available for future expenses as of March 31, 2003, before
consideration of deferred Litigation Trustee fees    |  |                                                | 3,516,007 
|Deferred Litigation Trustee fees                                                                                                     |  |                                                | (3,640,000
|Accrued interest on deferred Litigation Trustee fees                                                                                 |  |                                                | (923,117  
|                                                                                                                                     |  |                                                |           
|Deficit of funds available for future expenses as of March 31, 2003                                                                  |  | $                                              | (1,047,110
|                                                                                                                                     |  |                                                |           



In the preceding table,
expenses for Litigation and trust administration refer to fees paid to three individuals retained by the CPR Trust to provide litigation and trust administration support services. In addition, the amounts disclosed above as Expense
Fund balance available for future expenses as of March 31, 2003, before consideration of deferred Litigation Trustee fees (the



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Available Expense Fund
Balance) reconciles to the balance in the Expense Fund (recorded in the accompanying unaudited statement of financial condition as cash in bank) as follows:



|Available Expense Fund Balance |  | $ | 3,516,007
|------------------------------ |  | - | ---------
|Balance of accrued expenses    |  |   | 21,667   
|                               |  |   |          
|Expense Fund balance           |  | $ | 3,537,674
|                               |  |   |          



Through March 31, 2003,
approximately $5.49 million of expense was accrued for interest payable to Ahmanson or its successor on disbursements from the Expense Fund. The CPR Trusts obligation to pay such accrued interest is contingent upon receipt of sufficient
Litigation Proceeds. Since the Litigation has been terminated, no such accrued interest will be paid.



Item 3 is not applicable.



Item 4. Controls and Procedures.



The Litigation Trustees have concluded that the registrants disclosure controls and procedures are effective based on
their evaluation of these controls as of March 18, 2003. There have been no changes in the registrants internal controls or in other factors that could significantly affect these controls subsequent to that date.



PART II OTHER INFORMATION



Item 1. LEGAL PROCEEDINGS



For a discussion of Coast Federal Bank, FSB v. The United States, which is the
Litigation to which the Registrants CPR Certificates relate, see PART 1, Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsThe Litigation.



Items 2 through 5 are not applicable or the answers are negative.



12



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Item 6. EXHIBITS AND REPORTS
ON FORM 8-K



|(a) |  | Exhibits
|--- |  | --------



|99.1 |  | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|---- |  | -----------------------------------------------------------------------



|(b) |  | Reports on Form 8-K
|--- |  | -------------------



During the quarter ended March 31, 2003, the following reports on Form 8-K were filed by the registrant:



| | 1. |  | February 15, 2003, Item 5, Other Events. Press release regarding Court of Appeals order granting government petition for rehearing of Appellate Court Decision.
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 2. |  | March 25, 2003, Item 5, Other Events. Press release regarding Appellate Court en banc Decision in Favor of Government.
| | -- |  | ----------------------------------------------------------------------------------------------------------------------



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SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                                     
|-------------------------------------
|                                     
|                                     
|                                     
|/s/    RAY
MARTIN                    
|Ray Martin, Litigation Trustee       
|                                     
|/s/    ROBERT L. HUNT
II             
|Robert L. Hunt II, Litigation Trustee





Dated: May 7, 2003



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I, Ray Martin, certify that:



1. I have reviewed this quarterly report on Form 10-Q of the
Coast Federal Litigation Contingent Payment Rights Trust;



2.
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly report;



3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;



4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:



a) designed such disclosure controls and
procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;



b) evaluated the effectiveness of the
registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the Evaluation Date); and



c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;



5.
The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent
function):



a) all significant deficiencies in
the design or operation of internal controls which could adversely affect the registrants ability to record, process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in
internal controls; and



b) any fraud, whether or
not material, that involves management or other employees who have a significant role in the registrants internal controls; and



15



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6. The registrants other
certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.



Date: May 7, 2003



/s/    RAY
MARTINRay Martin Litigation Trustee








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I, Norman H. Raiden, certify
that:



2. I have reviewed this quarterly report on Form 10-Q of
the Coast Federal Litigation Contingent Payment Rights Trust;



2.
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly report;



3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;



4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:



a) designed such disclosure controls and
procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;



b) evaluated the effectiveness of the
registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the Evaluation Date); and



c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;



5.
The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent
function):



a) all significant deficiencies in
the design or operation of internal controls which could adversely affect the registrants ability to record, process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in
internal controls; and



b) any fraud, whether or
not material, that involves management or other employees who have a significant role in the registrants internal controls; and



17



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6. The registrants other
certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.



Date: May 7, 2003



/s/    NORMAN H. RAIDENNorman H. Raiden Litigation Trustee






18



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I, Robert L. Hunt II, certify
that:



1. I have reviewed this quarterly report on Form 10-Q of
the Coast Federal Litigation Contingent Payment Rights Trust;



2.
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly report;



3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;



4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:



a) designed such disclosure controls and
procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;



b) evaluated the effectiveness of the
registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the Evaluation Date); and



c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;



5.
The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent
function):



a) all significant deficiencies in
the design or operation of internal controls which could adversely affect the registrants ability to record, process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in
internal controls; and



b) any fraud, whether or
not material, that involves management or other employees who have a significant role in the registrants internal controls; and



19



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6. The registrants other
certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.



Date: May 7, 2003



/s/    ROBERT L. HUNT
IIRobert L. Hunt II Litigation Trustee




20



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I, James F. Barritt, certify
that:



1. I have reviewed this quarterly report on Form 10-Q of
the Coast Federal Litigation Contingent Payment Rights Trust;



2.
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this quarterly report;



3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;



4. The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:



a) designed such disclosure controls and
procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;



b) evaluated the effectiveness of the
registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the Evaluation Date); and



c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;



5.
The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent
function):



a) all significant deficiencies in
the design or operation of internal controls which could adversely affect the registrants ability to record, process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in
internal controls; and



b) any fraud, whether or
not material, that involves management or other employees who have a significant role in the registrants internal controls; and



21



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6. The registrants other
certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.



Date: May 7, 2003



/s/    JAMES F.
BARRITTJames F. Barritt Litigation Trustee




22



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INDEX TO
EXHIBITS



|Exhibit No. |  | Document Description                                                   
|----------- |  | -----------------------------------------------------------------------
|99.1        |  | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of
2002



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