UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ALABAMA
ORDER REGARDING THE COURT *
REGISTRY INVESTMENT *
STANDING ORDER NO. 35
SYSTEM (CRIS) FEE STRUCTURE *
AND DISPUTED OWNERSHIP *
FUND *
Civil L.R. 67 governs deposits into the court, withdrawal of monies, and registry
fees. This Standing Order modifies Civil L.R. 67 by establishing a new Disputed
Ownership Fund pool and implementing a new fee structure for all court deposits.
I. Investment of Interpleader Funds in the CRIS Disputed Ownership Fund
A. The Administrative Office of the United States Courts is establishing a Disputed
Ownership Fund (DOF) within the Court Registry Investment System (CRIS).
Interpleader funds deposited under 28 U.S.C. § 1335 meet the IRS
definition of a disputed ownership fund, 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.
B. 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
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.
II. Fees and Taxes
A. 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.
B. 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.
III. Transition to DOF and New Fee Structure
A. Sections I(A), I(B) and II(B), above, supplement the existing provisions of Civil
L.R. 67. The effective date of Sections I(A), I(B) and II(B) is April 1, 2017,
which is the date on which the DOF administered by the Administrative Office of
the United States Courts will begin accepting deposits. Those sections, and the
DOF procedures and fee structures they describe, govern all new § 1335
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interpleader registry deposits made on or after that effective date, but no other
CRIS funds or deposits.
B. Section II(A) supersedes and replaces Civil L.R. 67(g) in its entirety. The
effective date of the new CRIS fee structure set forth in Section II(A) is
December 1, 2016.
C. Except as specifically stated herein, Civil L.R. 67 remains in full force and effect.
Done this 14th day of November, 2016.
FOR THE COURT:
/s/
William H. Steele
Chief United States District Judge
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