U.S.
FJL-. EtJNITED STATES DISTRICT·COURT I lo -001
:) l·H/Cf G!jtfji THE DISTRICT OF UTAH
ZUlb DEC I b e 12: 25
. STANDIN<i3i:J:~~fltr N~~ D~POSIT AND INVESTMENT OF REGISTRY FUNDS
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As tl±dfi]©ti'tli'Ii_a§l:q~~Ffilllned that it is n~cessary to adopt local procedures to ensure
uniformity in the deposit, investment, and tax administration of funds in the Court's Registry,
IT IS ORDERED that the following shall govern the receipt, deposit, and investment of
registry funds:
I. 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 peimitting 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 shaU 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. § 20.41 through depositories designated by
· the Treasury to accept such deposit on its behalf. ·
II. 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 accmm.t or invested in a comt-approved, interest-
bearing instrument in accordance with Rule 67 of the Federal Rules of Civil
Procedure, the Court Registry Io.vestment 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. 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
administr.ation. Unless otherwise ordered by the comt, interpleader fimds shall
be deposited in the DOF established within the CRIS and administered by the
Administrative Office of the United States CoUlts, which shall be responsible
for meeting all DOF tax administration requirements.
C. The Dir~ctor of Administrative Office of the United States Courts is designated
as custodian for C:lJl CRIS funds. The Director or the Director's designee shall
perform the duties of custodian. Funds held in the CRlS remain subject to the
control and jurisdiction of the Court.
D. Money from each case deposited in the CRlS shall be "pooled" together with
those on deposit with Treasury to the credit of o~er courts in the CRIS and used
to purchase Government Acco~t 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 accoraance with the principles of the CRIS
fuvestment 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 CRlS Disputed
Ownership Filnd, 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 throug)l the
Fedinvest/CMS application for each court participating in the CRIS and made
available to litigants and/or their co1msel. 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.I 0 basis points on assets on deposit for aJl CRIS funds, excluding
the case funds held in the DOF, for the management of investments in the CRlS.
According to the Court:s Miscellaneous Fee Schedule, the CRlS 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 tbis Orde:r 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 Comi'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 of the DOF.
IV. · Transition from Former Investment Procedure
A. The Clerk of Court is further directed to develop a systematic method of
redemption of all existing investments and their transfer to the CRIS.
B. Deposits to the CRJS DOF will not be transferred from any existing CRJS
Funds. Only new deposits pursuant to 28 U.S.C. § 1335 from the effective
date of this order will.be placed in the CRJS DOF.
C. Parties not wishing to transfer certain existing registry deposits into the CRIS
may seek leave to transfer them to the litigants or their designees on proper
motion and approval of the judge assigned to the specific case.
D. This Order supersedes and abrogates all prior orders of this Court regarding the
deposit and investment of registry funds.
E. (For courts already using CRIS) The effective date of this .order is the
date CRIS DOF begins accepting deposits.
BY THE COURT:
David Nuffer, Chief Judge Dated
