Local Rule LR Cv 67: DEPOSIT AND WITHDRAWAL OF FUNDS

LR Cv 67 DEPOSIT AND WITHDRAWAL OF FUNDS

(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.

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).