FILED
UNITED STATES DISTRICT COUR1l;J6 DEC 1 Pl'J 12 35
DISTRICT OF CONNECTICUT U.S. DISTRICT COURT
NEW HAVEN, CT.
ORDER REGARDING DEPOSIT AND INVESTMENT OF REGISTRY FUNDS
The Court, having determined that it is necessary to adopt local procedures to ensure
uniformity in the deposit, investment, and tax administration of funds in the Court's Registry,
IT IS ORDERED that the following shall govern the receipt, deposit, and investment of
registry funds:
I. Receipt of Funds
A. No money shall be sent to the Court or its officers for deposit in the Court's registry without
a court order signed by the presiding judge in the case or proceeding.
B. The party making the deposit or transferring funds to the Court's registry shall serve the
order permitting the deposit or transfer on the Clerk of Court.
C. Unless provided for elsewhere in this Order, all monies ordered to be paid to the Court or
received by its officers in any case pending or adjudicated shall be deposited with the
Treasurer of the United States in the name and to the credit of this Court pursuant to 28
U.S.C. § 2041 through depositories designated by the Treasury to accept such deposit on its
behalf.
II. Investment of Registry Funds
A. Where, by order of the Court, funds on deposit with the Court are to be placed in some form
of interest-bearing account or invested in a court-approved, interest-bearing instrument in
accordance with Rule 67 of the Federal Rules of Civil Procedure, the Court Registry
Investment System ("CRIS"), administered by the Administrative Office of the United
States Courts under 28 U.S.C. § 2045, shall be the only investment mechanism authorized.
B. 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.
C. The Director of Administrative Office of the United States Courts is designated as
custodian for all CRIS funds. The Director or the Director's designee shall perform the
duties of custodian. Funds held in the CRIS remain subject to the control and jurisdiction
of the Court.
D. Money from each case deposited in the CRIS shall be "pooled" together with those on
deposit with 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 Treasury, in an account in the name and to the credit of the Director of
Administrative Office of the United States Courts. The pooled funds will be invested in
accordance with the principles of the CRIS Investment Policy as approved by the Registry
Monitoring Group.
E. An account will be established in the CRIS Liquidity 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 based on the ratio each account's principal and earnings has
to the aggregate principal and income total in the fund after the CRIS fee has been applied.
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.
F. 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 Fedlnvest/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.
III. 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.
IV. Transition From Former Investment Procedure
A. The Clerk of Court is further directed to develop a systematic method of redemption of all
existing investments and their transfer to the CRIS.
B. Deposits to the CRIS DOF will not be transferred from any existing CRIS Funds. Only
new deposits pursuant to 28 U.S.C. § 1335 from the effective date of this order will be
placed in the CRIS DOF.
C. Parties not wishing to transfer certain existing registry deposits into the CRIS may seek
leave to transfer them to the litigants or their designees on proper motion and approval of
the judge assigned to the specific case.
D. This Order supersedes and abrogates all prior orders of this Court regarding the deposit and
investment of registry funds.
E. The effective date of this order is, April 1, 2017, the date the CRIS DOF begins accepting
deposits.
Dated at New Haven, Connecticut on this J..&_ day of December, 2016.
Isl Janet C. Hall
Janet C. Hall
Chief United States District Judge
