(a) Receipt of Funds.
(1) Court Order Required. No funds shall be sent to the Court or its officers for
deposit into the registry of the Court without an order signed by the presiding judge.
The party making the deposit shall serve the order permitting the deposit or transfer
on the Clerk of Court.
(2) Deposit with the Treasurer of the United States. Unless otherwise ordered, all
funds ordered to be paid to the Court or its officers 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 the depositories designated by the Treasury to accept such
deposit on its behalf.
(b) Investment of Registry Funds.
(1) Court Registry Investment System (CRIS). Unless otherwise ordered, funds on
deposit with the Court ordered to be placed in some form of interest-bearing account
in accordance with Fed. R. Civ. P. 67 will be placed in the Court Registry Investment
System (CRIS) administered through the Administrative Office of the United States
Courts. The Director of the Administrative Office of the United States Courts is
designated as custodian for all CRIS funds.
Deposits made with the CRIS will be pooled with those on deposit with the 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 the
Treasury in an account in the name and to the credit of the Director of the
Administrative Office of the United States Courts.
(2) Interest-Bearing Funds. A separate account for each case will be established in the
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
upon the ratio each account's principal and earnings has to the aggregate principal and
income total in the fund after the CRIS maintenance fee described in (c) 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.
(3) Interpleader Funds. Interpleader funds deposited under 28 U.S.C. §1335 are
considered 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. The custodian shall be
responsible for meeting all DOF tax administration requirements, and is authorized
and directed to deduct the DOF fee on assets on deposit in the DOF for management
of investments and tax administration. The custodian is further authorized and
directed to withhold and pay federal taxes due on behalf of the DOF.
U.S. DISTRICT COURT RULES -- RULES APPLICABLE TO CIVIL PROCEEDINGS
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 described in (c) 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 directed by court order.
(c) Maintenance of Interest-Bearing Funds
(1) Non-DOF Maintenance Fees. The custodian is authorized and directed to deduct a
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. The fee is assessed from interest earnings to the pool before a pro rata
distribution of earnings is made to individual accounts.
(2) DOF Maintenance Fees. The custodian is authorized and directed to deduce the
DOF fee of an annualized 20 basis points on assets on deposit in the DOF for
management of investments and tax administration. The DOF fee is assessed from
interest earning to the pool before a pro rata distribution of earnings is made to
individual accounts.
(d) Disbursement of Funds.
(1) Disbursement of Interest Bearing Funds. No interest-bearing funds may be paid
out of the registry except by order of the Court. The custodian shall disburse all
registry principal and income, if applicable, less the registry fee assessment, pursuant
to the Court’s order. Any such order shall set forth the funds in question and name(s)
of the payee(s).
(2) Disbursement of Non-Interest Bearing Funds. No non-interest bearing funds may
be paid out of the registry except by order of the Court. Any such order shall set forth
the funds in question and name(s) of the payee(s).
Effective 12/1/17: §(a)(1)-(2) amended, and §(a)(3) deleted; §§(b)-(c) amended; and new §(d) added. Effective 12/1/11:
§(c) amended. Effective 3/17/08: §(b) amended.
CROSS-REFERENCES
See LR Cv 7 (Motions and Other Papers).
See also 28 U.S.C. §§2041-2043 (deposit and withdrawal of court registry funds).
U.S. DISTRICT COURT RULES -- RULES APPLICABLE TO CIVIL PROCEEDINGS
