(a) General Provisions.
(1) 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 applicable
case or proceeding.
(2) Unless provided elsewhere in this Local Rule or Administrative Order No.
2017-20, 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
Treasurer to accept such deposits on its behalf.
(3) Funds will be disbursed from the Court’s registry only upon entry of an
order authorizing disbursement. The order directing disbursement must
include: (1) the name and address of each person or other entity to receive
funds; and (2) the sum of money to be paid to each person or other entity
along with any interest accrued thereon, less the registry fees and taxes
provided for herein or as otherwise authorized by the Judicial Conference
of the United States.
(b) Investment of Treasury Funds in Interest-Bearing Accounts
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(1) When, 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 Fed. R. Civ. P. 67, the Court
Registry Investment System (“CRIS”), administered by the Administrative
Office of the United States Courts under 28 U.S.C. §2045, shall be the only
investment mechanism authorized.
(2) Interpleader funds deposited under 28 U.S.C. §1335 meet the 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 office of the clerk has
established specific CM/ECF events for filing motions and proposed orders
authorizing the deposit or disbursement of DOF funds as defined under 28
U.S.C. §1335.
(c) Fees and Taxes for CRIS funds
(1) The custodian for all CRIS funds is the Director of the Administrative Office of
the United States Courts or his designee. The custodian is authorized and
directed by the Court to deduct the CRIS fee of an annualized 10 basis points
on Court assets on deposit for all CRIS funds, excluding funds held in the
DOF, for 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.
The custodian is authorized and directed by the Court to deduct the DOF fee of
an annualized 20 basis points on Court 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 the Court to withhold and pay
federal taxes due on behalf of the DOF.
(d) Miscellaneous
(1) Additional information concerning CRIS and DOF registry deposits can be
found in the Court’s Administrative Order No. 2017-20.
(2) The effective date of this REVISED FINAL DRAFT of L.R. 67.1 is September
25, 2017.
(3) This revised Local Rule shall only be applied prospectively as of September 25,
2017.
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