IN THE UNITED STATES DISTRICT COURT f-,, r:n
FOR THE WESTERN DISTRICT OF OKLAHOMA"-tU
JAM 1 7 9075
IN RE: DEPOSIT AND INVESTMENT )
wr REGISTRY
OF rviLVjXC5±iXJL FUNDS
r J
^ GO DIST.
kane,CpyRT,
clerkWESTERN DIST. OKLA
BY Q/^ DEPUTY
ORDER
The Court, having determined that it is necessary to adopt updated local
procedures to ensure uniformity in the deposit, investment, and tax administration
of funds in the Court's Registry,
HEREBY ORDERS that the following shall govern the receipt, deposit, and
investment of registry funds:
L 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.
H. 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
("CRJS"), administered by the Administrative Office of the United States
Courts under 28 U.S.C. § 2045, shall be the only investment mechanism
authorized.
B. IRS regulations require special handling for "Disputed Ownership Funds"
(DOF), as defined in 26 CFR § 1.468B-9 (Disputed ownership funds).
Unless otherwise ordered by the Court, interpleader funds that qualify as a
DOF under IRS regulations (e.g., eligible cases filed under 28 U.S.C. §
1335 or Fed. R. Civ. P. 22)shall be deposited in the DOF Pool 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 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.
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
witbboldings 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 ofthe DOF.
IV. Superseding Effect
A. This Order supersedes and abrogates all prior general orders of this
Court regarding the deposit and investment ofregistry funds, including
General Order 16-3.
IT IS SO ORDERED this ll' day of January 2025.
TIMOTHY D. DEGIUSTI
CHIEF UNITED STATES DISTRICT JUDGE
