IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELA WARE
ORDER REGARDING DEPOSIT AND
INVESTMENT OF REGISTRY FUNDS
In accordance with the Order dated January 18, 2013, the United States District Court
implemented use of the Court Registry Investment System (CRIS) for the deposit and investment
of registry funds.
WHEREAS, the Court has 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 effective December 1, 2016, 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 ofthe 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
CRIS and administered by the Administrative Office ofthe United States Courts, which shall
be responsible for meeting all DOF tax administration requirements.
C. The Director ofAdministrative Office ofthe United States Courts is designated as custodian
for CRIS. 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 CRrS 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 ofthe Director ofAdministrative
Office ofthe 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.
E. An account for each case will be established in the CRIS Liquidity Fund and/or Minors'
Fund titled in the name ofthe case giving rise to the deposit invested in the fund. This court
has been approved to participate in the Minors' Fund. The Minors' Fund is a separate pool
restricted to post adjudicated cases pertaining to minors only. 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 FedInvest/CMS application for each court participating in CRIS and made available to
litigants and/or their counsel. On appointment of an administrator authorized to incur
expenses on behalf ofthe DOF in a case, the case DOF funds shall be transferred to another
investment account as directed by court order.
III. Deductions of Fees
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 ofinvestments 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 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 made to
court cases. The custodian is further authorized and directed by this Order to withhold and
pay federal taxes on behalf of the DOF.
IV. Transition From Former Investment Procedure
A. 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.
B. This Order supersedes and abrogates all prior orders of this Court regarding the deposit and
investment of registry funds.
C. This Order is generally effective on the date of entry, but DOF provisions will become
effective the date the CRIS DOF begins accepting deposits.
This the _ _3(\ NrJ~~~~r
"'_---:;Q.;_ _ _ day of _ _ _ _ _ _ _ _ _ _, 2016.
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Chief Judge
