FILED
IN THE UNITED STATES DISTRICT COURT NOV 2 3 2016
FOR THE DISTRICT OF MONTANA
Clerk, U.S District Court
District Of Montana
Missoula
IN RE : DEPOSIT AND
INVESTMENT OF REGISTRY STANDING ORDER DLC-28
FUNDS
IT IS ORDERED that the following shall govern the receipt, deposit, and
investment of registry funds:
No money shall be sent to the court or its officers for deposit in the Court's
registry without an order signed by the presiding judge in the case or proceeding
directing such a deposit be made.
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.
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
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Administrative Office of the United States Courts under 28 U.S.C. § 2045, shall be
the only investment mechanism authorized.
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.
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.
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.
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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.
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.
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
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the CRIS. According to the court's 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.
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 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.
("~
DATED this ~ day of November, 2016.
Dana L. Christensen, Chief Judge
United States District Court
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