(a) No money shall be sent to the Court or to the Clerk of the Court for deposit into
the Court’s registry without a court order signed by the presiding Judge in the case or
proceeding. 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. Unless provided for elsewhere
in this Rule, all money ordered to be paid into the Court or received by the Clerk of the Court in
any case pending or adjudicated shall be deposited with the Treasury of the United States in the
name and to the credit of this Court pursuant to 28 U.S.C. § 2041 through depositories that the
Treasury has designated to accept such deposit on its behalf via cashier’s check or certified
check.
(b) Order Directing the Investment of Funds. 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 using the Court Registry Investment System
(“CRIS”), administered by the Administrative Office of the United States Courts under 28
U.S.C. §2045. Any order directing the Clerk of the Court to invest funds deposited with the
Court’s CRIS pursuant to 28 U.S.C. § 2041 shall specify the amount to be invested. The Clerk
of the Court shall take all reasonable steps to invest the funds within fourteen (14) days of the
filing date of the order.
(c) Investment of Registry Funds.
1. When the Court orders funds on deposit with the Court be placed in some
form of interest-bearing account, CRIS shall 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 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.
4. Money from each case deposited into CRIS shall be “pooled” together
with those on deposit with Treasury to the credit of other courts in 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 the 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.
5. An account for each case will be established in CRIS Liquidity Fund titled
in the name of the case giving rise to the investment 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.
Quarterly 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 the 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 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.
(d) A supersedeas bond, where the judgment is for a sum of money only, shall be in
the amount of the judgment plus 11% to cover interest and any damage for delay as may be
awarded, plus $250 to cover costs.
When a stay shall be effected solely by the giving of the supersedeas bond, but the
judgment or order is not solely for a sum of money, the Court, on notice, shall fix the amount of
the bond. In all other cases, the Court shall, on notice, grant a stay on the terms it deems proper.
On approval, a party shall file the supersedeas bond with the Clerk, and shall promptly serve a
copy thereof, with notice of filing, upon all parties affected thereby. If a party raises objections
to the form of the bond or to the sufficiency of the surety, the Court shall provide prompt notice
of a hearing to consider such objections.
(e) Registry Investment Fee and Taxes.
1. The custodian is authorized and directed 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 for 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.
3. 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.
