Deposit of Funds Into the Court
Occasionally parties may request funds be deposited into the court, usually, in a civil case. A court Order is required before funds will be accepted and receipted into the registry. The instrument to be deposited into the court should be payable to “Clerk, U.S. District Court”. No third party checks are accepted. The funds will be deposited into the registry fund of the treasury unless governed by Fed.R.Civ.P 67, directing funds to be deposited into an interest bearing account.
Per Court Order the funds will be either:
Held in the Treasury - Funds deposited directly into the treasury will be held by the court, referencing the case number and style. No interest is earned or accrued when held in the treasury. Upon order of the court the funds are disbursed as directed by the clerk's office.
Invested in Local Bank Accounts - Funds deposited under Rule 67 will be invested locally. An investment account will be opened for each deposit by the court referencing the specific case number and style. The funds are normally deposited in certificates of deposit unless the court order specifies another investment. Funds are disbursed from an investment account only upon an order of the court and are subject to an administrative fee. The administrative fee assessed is typically 10% of the interest earned. This can differ, however, for older cases where other statutes/rules apply. A proposed order for disbursement of the funds must contain the following information:
- The principal sum initially deposited.
- The amount or percentage of principal to be disbursed to each party.
- The percentage of accrued interest to be disbursed to each party, subject to the deduction of the Court’s administrative fee.
- To whom exactly each disbursement check should be made payable.
- Full mailing instructions for each disbursement check, including full street address and zip code.
Disbursements from the investment accounts will be made by check as the business of the clerk's office allows; no wire transfers are permitted. The court maintains the balances of each investment account as of the end of each month. The court prefers that disbursement orders do not try to reference current balances in the accounts at the time the order is proposed, since several days will pass between the time the proposed order is filed, signed, docketed and disbursed, additional interest will accrue. Exact amounts of the principal may be referenced with directives on the division of interest (prorated, percentage, etc.). The investment account is not closed until shortly before the actual check(s) are disbursed in order to maximize interest earned. Disbursement checks may be picked up at the clerk's office if prior arrangements are made with the Financial Administrator. The Financial Administrator may be contacted to determine when the check will be available at 918-699-4715.