(a) Receipt of Funds
(1) No money will be sent to the court or its officers for deposit in the court’s registry
without a court order signed by the presiding district or magistrate judge in the case
or proceeding.
(2) The party making the deposit or transferring funds to the court’s registry will serve
the order permitting the deposit or transfer on the Clerk of Court.
(3) Unless provided for elsewhere in this Local Rule, all money ordered to be paid to
the court or received by its officers in any case pending or adjudicated will be
deposited with the Treasurer of the United States in the name and to the credit of this
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Effective October 15, 2025
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court pursuant to 28 U.S.C. § 2041 through depositories designated by the Treasury
to accept such deposit on its behalf.
(b) Investment of Registry Funds
(1) Unless otherwise ordered by a district judge, all funds deposited in the registry of
the court in which the principal equals or exceeds $5000 are to be placed in an
interest-bearing account. The Court Registry Investment System (“CRIS”),
administered by the Administrative Office of the United States Courts under 28 U.S.C.
§ 2045, will be the only investment mechanism authorized.
(2) Interpleader funds deposited under 28 U.S.C. § 1335 meet the IRS definition of a
Disputed Ownership Fund (“DOF”), a taxable entity that requires tax administration.
Unless otherwise ordered by the court, interpleader funds shall be deposited in the
DOF established within the CRIS and administered by the Administrative Office of the
United States Courts, which shall be responsible for meeting all DOF tax
administration requirements.
(3) The Director of the Administrative Office of the United States Courts is designated
as custodian for CRIS. The Director or the Director’s designee will perform the duties
of custodian. Funds held in the CRIS remain subject to the control and jurisdiction of
the court.
(4) Money from each case deposited in the CRIS will be “pooled” together with those
on deposit with the Treasury to the credit of other courts in the CRIS and used to
purchase Government Account Series securities through the Bureau of Public Debt,
which will be held at the Treasury, in an account in the name and to the credit of the
Director of the Administrative Office of the United States Courts. The pooled funds
will be invested in accordance with the principals of the CRIS Investment Policy as
approved by the Registry Monitoring Group.
(5) An account for each case will be established in the CRIS titled in the name of the
case giving rise to the investment of the fund. Income generated from fund
investments will be distributed to each case based on the ratio each account’s
principal and earnings has to the aggregate principal and income total in the fund.
Reports showing the interest earned and the principal amounts contributed in each
case will be prepared and distributed to each court participating in the CRIS and
made available to litigants and/or their counsel.
(6) For each interpleader case, an account shall be established in the CRIS Disputed
Ownership Fund, titled in the name of the case giving rise to the deposit invested in
the fund. Income generated from fund investments will be distributed to each case
after the DOF fee has been applied and tax withholdings have been deducted from
the fund. Reports showing the interest earned and the principal amounts contributed
in each case will be available through the FedInvest/CMS application for each court
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Effective October 15, 2025
Page 33
participating in the CRIS and made available to litigants and/or their counsel. On
appointment of an administrator authorized to incur expenses on behalf of the DOF in
a case, the case DOF funds should be transferred to another investment account as
directed by court order.
(c) Fees and Taxes
(1) The custodian is authorized and directed by this Order to deduct the CRIS fee of
an annualized 10 basis points on assets on deposit for all CRIS funds, excluding the
case funds held in the DOF, for the management of investments in the CRIS.
According to the Court’s Miscellaneous Fee Schedule, the CRIS fee is assessed from
interest earnings to the pool before a pro rata distribution of earnings is made to court
cases.
(2) The custodian is authorized and directed by this Order to deduct the DOF fee of
an annualized 20 basis points on assets on deposit in the DOF for management of
investments and tax administration. According to the Court’s Miscellaneous Fee
Schedule, the DOF fee is assessed from interest earnings to the pool before a pro
rata distribution of earnings is made to court cases. The custodian is further
authorized and directed by this Order to withhold and pay federal taxes due on behalf
of the DOF.
(d) Disbursement of Registry Funds
(1) Upon the entry of a judgment, funds, if any, on deposit in the registry of the court
will be disbursed only by order of the court after the time for appeal has expired, or
upon written stipulation by all parties approved by the court.
(2) Each order directing the Clerk to disburse funds must be clearly entitled “order to
disburse funds” and must be without conditions to be met prior to disbursement of
said funds. It must indicate which parties are entitled to principal and any accrued
interest. The order must also contain the name and mailing address of the party
entitled to said funds, in which case the information may be redacted and/or provided
directly to the Clerk’s financial office.
(3) Taxpayer identification numbers for the check payees must be delivered directly to
the Clerk’s financial office prior to disbursement.
