Local Rule General Rule 1.10: DEPOSIT AND WITHDRAWAL OF FUNDS WITH THE COURT
D.N.D. — General rule
GENERAL RULE 1.10 DEPOSIT AND WITHDRAWAL OF FUNDS WITH THE COURT
(A) GENERAL
(1) NON-INTEREST-BEARING FUNDS The clerk must deposit non-interest-bearing funds (e.g., bonds in criminal cases, condemnation proceeds) in the local registry of the court.
(2) INTEREST-BEARING FUNDS The clerk must deposit interest-bearing funds (e.g., deposits under Fed. R. Civ. P. 67) in the registry of the court in the Court Registry Investment System (CRIS), subject to withdrawal upon court order. The Director of the Administrative Office of the United States Courts is designated as custodian for the CRIS. The custodian must deduct from the income earned fees, as set by the Director of the Administrative Office of the United States Courts.
(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, the interpleader funds must be deposited in the DOF established within the CRIS and administered by the Administrative Office of the United States Courts, which is responsible for meeting DOF tax administration requirements. The custodian is authorized and directed to deduct the DOF fee on assets deposited in the DOF for management of investments and tax administration. The custodian must withhold and pay federal taxes due on behalf of the DOF.
(4) COMPLIANCE A party is responsible for supplying the court with the information required by this rule.
(B) DEPOSIT OF FUNDS
(1) NON-INTEREST-BEARING FUNDS Before depositing funds with the clerk, a party must obtain a court order directing the funds be deposited in the court's local registry.
(2) INTEREST-BEARING FUNDS
(a) Before depositing funds that are to be interest bearing with the clerk, a party must obtain a court order including:
(i) the amount to be invested; and
(ii) language authorizing the custodian to deduct the applicable fees and taxes, without further court order.
(b) The instrument to be deposited in the registry must be made payable to the United States District Court. Third-party checks are not accepted. Funds must be forwarded to the Fargo clerk's office for deposit.
(c) The following guidelines govern the deposit of interest-bearing registry funds:
(i) Interest-bearing registry funds must be invested in the CRIS.
(ii) The clerk must promptly deposit the funds.
(C) WITHDRAWAL OF FUNDS Funds deposited in the registry of the court may be withdrawn only upon court order. Unless otherwise ordered by the court, withdrawals of registry funds are made by check only.
(1) WITHDRAWAL OF NON-INTEREST-BEARING FUNDS Cash bonds are distributed only by a court order. Unless the court orders otherwise, cash deposited as security on a bond is refunded as provided in the affidavit of ownership filed under D.N.D. Gen. L.R. 1.11.
(2) WITHDRAWAL OF INTEREST-BEARING FUNDS
(a) Before the court issues an order disbursing interest-bearing funds, a party must file, under seal, a document setting forth the following:
(i) the full mailing instructions for each disbursement check, including full address and zip code; and
(ii) a completed IRS Form W-9 or an AO-213.
(b) An order disbursing interest-bearing funds must contain the following:
(i) the principal sum initially deposited;
(ii) direction for the custodian to distribute the interest; and
(iii) the amount of the principal sum to be disbursed to each payee.
(3) COMPLIANCE Disbursements of funds are not made until the above information is provided to the clerk.