Local Rule LCvR 67.2: DEPOSIT IN COURT
W.D. Pa. — Civil rule
LCvR 67.2 DEPOSIT IN COURT A. Investment of Funds by Clerk of Court. The Clerk of Court will invest funds under Fed. R. Civ. P. 67 as soon as the business of his or her office allows.
B. Administrative Fee. All registry invested accounts are subject to an administrative handling fee at a rate established by the Judicial Conference of the United States. The fee will be assessed and funds will be withdrawn from each invested account in accordance with Judicial Conference directives and this may be accomplished by the authority herein and without further order of Court.
C. Motion Required for Deposit Into Interest Account. The posting party must move the Court to have registry funds deposited into an interest-bearing account, the Court Registry Investment System ("CRIS"), which is administered by the Administrative Office of the United States Courts under 28 U.S.C. § 2045, and shall be the only investment mechanism authorized. The proposed investment order should be reviewed by the Clerk of Court or his or her financial deputy to insure that all of the required investment information is included. It is the responsibility of the posting party to serve the Clerk of Court or his or her financial deputy with a copy of the signed investment order. In most instances, the office of the Clerk of Court can provide a standard investment order that would satisfy the requirements of the federal rules and these Local Rules.
D. Court Registry Investment System. CRIS is the designated depository for the Court. The Clerk of Court shall, upon an order from the Court, deposit funds subject to Fed. R. Civ. P. 67 into CRIS.
E. Petition Required for Investment. If the attorney for the party on whose behalf the deposit is made desires to invest funds in a manner other than at the designated depository of the Court, and if the investment is in accordance with the requirements of the federal rules, and specifically Fed. R. Civ. P. 67, a petition and proposed order may be presented for the Court's consideration.
F. IRS Regulations Applicable. Registry deposits involving designated or qualified settlement funds may be subject to IRS Regulations that require the appointment of an administrator outside of the Court to handle fiduciary and tax matters. A registry account may be a designated or qualified settlement fund if:
1. there has been a settlement agreement in the case;
2. the Court has entered an order establishing or approving a deposit into the registry as a settlement fund; and 3. the liability resolved by the settlement is of a kind described in 26 U.S.C. § 468B or 26 C.F.R. § 1.468B-1(c).
It is the responsibility of the depositing party to identify any registry deposit intended to be a designated or qualified settlement fund. Depositors should contact the office of the Clerk of Court prior to the deposit of settlement fund monies to insure that proper procedures are followed for the reporting of interest income and the payment of income tax on registry accounts.