Local Rule RULE 7067-1: Registry Funds (revised May 26, 2015)

RULE 7067-1 Registry Funds (revised May 26, 2015)

A. Deposit Funds into Court Registry Account. A party who wishes to deposit funds while litigation is pending may move the court to have such funds deposited into the court's registry account. The movant must attach a proposed order directing investment, which includes the following:

1. The amount to be invested; and 2. The mode of deposit (i.e., check, wire transfer).

B. Investment of Registry Funds. Where, by order of the court, funds on deposit with the court are to be placed in some form of interest bearing account, the clerk is directed to use the Court Registry Investment System (CRIS), administered by the Administrative Office of the United States Courts. The Director of the United States Courts is designated as custodian for CRIS. The Director or the Director's designee will perform the duties of the custodian. CRIS will be the only investment mechanism authorized. Funds held in the CRIS remain subject to the control and jurisdiction of the court.

C. Accounts in CRIS. An account for each case will be established in CRIS, titled in the name of the case giving rise to the deposit of funds. Money from each case deposited in CRIS will 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, held at Treasury in an account in the name and credit of the Director of the Administrative Office of the United States Courts. 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. Income generated from fund investments will be distributed to each case. Reports showing the interest earned and the principal amounts contributed in each case will be made available to litigants and counsel.

D. Motion to Withdraw Funds. In order to withdraw deposited funds, a motion for disbursement of invested registry funds and a proposed order must be submitted to the financial deputy clerk for certification of the principal amount of the funds held in the registry in a particular case before the motion is presented to the judge. The proposed order for disbursement of invested registry funds must include the following:

1. The principal sum initially deposited;

2. The amount of principal funds to be disbursed;

3. To whom the disbursement is to be made with full address and zip code;

4. Specific instructions regarding distribution of accrued interest; and 5. If more than one check is to be issued on a single order, the portion of principal due each payee stated separately.

E. Order for Payment. After entry of an order for disbursement, the parties to whom funds are to be disbursed must provide to the financial deputy their tax identification numbers or social security numbers and complete any forms required by the Internal Revenue Service for the reporting of earned interest. Disbursements may not be made until this information and the required Internal Revenue Service forms are submitted to the financial deputy.

F. Deduction of Fees. The custodian is authorized and directed to deduct the investment services fee for the management of investments in CRIS and the registry fee for maintaining accounts deposited with the court. The investment services fee is assessed from interest earnings to the pool according to the Court's Miscellaneous Fee Schedule and is to be assessed before a pro rata distribution of earnings to court cases. The registry fee is assessed by the custodian from each case's pro rata distribution of the earnings and is to be determined on the basis of the rates published by the Director of the Administrative Office of the United States Courts as approved by the Judicial Conference of the United States.