Effective June 1, 2006

LR 67 DEPOSITS IN COURT and OTHER FUNDS (See Fed. R. Civ. P. 67)

LR 67.1 Deposits in Court -- Procedural Requirements (See 28 U.S.C. § 2041)

(a) Form of Deposit

All monies paid into the court must be by cash, or by cashier's check, authorized plastic card payment, or certified check made payable to Clerk, U.S. District Court.

(b) Registry Fund

Upon receipt, the clerk will deposit the monies with the Treasurer of the United States into the court’s registry fund.

(c) Assessment of Registry Fee

Pursuant to the authority of the Judicial Conference of the United States, the clerk will assess a registry fee on all income earned on any court approved account established pursuant to this rule.

LR 67.2 Order to Deposit Funds into Interest Bearing Accounts (See Appendix of Forms #18)

Prior to submission to the Court, the clerk’s office financial administrator must approve all proposed orders requesting authority to direct the deposit of funds from the registry of the court into interest-bearing accounts or instruments.

LR 67.3 Funds Withdrawal — Generally (See 28 U.S.C. § 2042)

(a) Authority

28 U.S.C. § 2042 provides that “No monies deposited pursuant to 28 U.S.C. § 2041 shall be withdrawn except by order of Court.”

(b) Motion to Withdraw Funds for Redeposit Elsewhere (See Appendix of Forms #19)

Upon motion or stipulation, the Court may order that funds be withdrawn from the registry of the court for redeposit elsewhere. A proposed form of order must be submitted with an application to withdraw funds, and must contain the following information:

(1) The amount on deposit and the schedule of anticipated or future deposits;

(2) The amount to be withdrawn and the amount of the registry fee to be assessed by the clerk;

(3) The plan for redepositing the funds;

(4) The name of the attorney of record who will receive and maintain the funds as a trustee; and

(5) The proposed disposition of the funds upon final order of Court.

(c) Review of Proposed Orders by the Clerk

Prior to submission to the Court, the clerk’s office financial administrator must approve all applications and proposed orders to withdraw monies.

LR 67.4 Disbursement of Funds

Except as directed by the Court, payments from registry funds held by the Court will be paid jointly to the entitled party and to their local attorney of record, and will be mailed to the attorney for distribution.

LR 67.5 Designated or Qualified Settlement Funds

(a) Designation of Fund

A registry account may be designated to serve as a qualified settlement fund only if:

(1) There has been a settlement agreement in the case;

(2) A Court order has established or approved a deposit into the registry as a settlement fund; and

(3) The liability resolved by the settlement agreement is of a kind described in 26 U.S.C. § 468B or 26 C.F.R. § 1.468B-1(c).

(b) Designation of Administrator

When a registry account is established under LR 67.1, the Court will designate a person outside the court to serve as the administrator responsible for obtaining the employer identification number for the fund, filing all fiduciary tax returns, and paying any tax. Generally, the Court will designate either the person named as administrator in the settlement agreement or counsel for the party that deposited the funds into the registry account.