Local Rule LCR 67: REGISTRY FUNDS
W.D. Wash. — Civil rule
LCR 67
REGISTRY FUNDS
(a) Deposit into Court Registry and Investment of Registry Funds
All deposits into the Registry of the Court must be accompanied by an order approving the deposit signed by a judge. Each signed order shall contain the following language: "the Clerk is directed to deposit funds into the Registry of the Court in the principal amount of $____." Acceptable forms of deposit into the Court Registry are cashier's or business check made payable to "USDC Court Clerk."
(b) Investing and Withdrawing Funds
Funds deposited in the Registry of the Court will be invested in the Court Registry Investment System (CRIS), an interest-bearing account in accordance with the guidelines set up by the Administrative Office of the Court and approved by the court.
All motions for disbursement of registry funds shall specify the principal sum initially deposited, the amount(s) of principal funds to be disbursed and to whom the disbursement is to be made. Each proposed order seeking disbursement of registry funds shall contain the following language: "... the clerk is authorized and directed to draw a check(s) on the funds deposited in the registry of this court in the principal amount of $ plus all accrued interest, payable to (name of payee) and mail or deliver the check(s) to (name of payee)." If more than one check is to be issued pursuant to a single order, the portion of principal and interest due each payee must be separately stated.
Mailing address(es) and a completed IRS W-9 form from each disbursement recipient must be emailed to the Clerk's Office Finance Department at seafin@wawd.uscourts.gov, but shall not be filed in the record.
(c) Clerk Fee
The clerk is directed to deduct from the income earned on the investment a fee as prescribed by the Judicial Conference of the United States and set by the Director of the Administrative Office of the Court.
(d) Disputed Ownership Funds
A Disputed Ownership Fund (DOF) is created when a plaintiff who disclaims ownership of the funds at issue files a statutory interpleader action under 28 U.S.C. § 1335.
Statutory interpleader funds deposited under 28 U.S.C. § 1335 must meet the IRS definition of a "disputed ownership fund" (DOF), which is a taxable entity that requires tax administration. See 26 U.S.C. § 468B and 26 CFR § 1.468B-9(b)(1), 9(h)(3).
A Motion for Interpleader Deposit is required. The motion must clearly identify that the funds are to be deposited into the Court Registry Investment System (CRIS) for Disputed Ownership Fund. The proposed order accompanying the motion must correctly identify the interpleader funds by stating that the funds are to be "deposited into the Court Registry Investment System as Disputed Ownership Funds (DOF) interpleader funds under 28 U.S.C. § 1335."