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Local Bankr. R. 7067-1 Registry Fund.
EFFECTIVE MARCH 16, 2026
(a) Investment of Registry Funds
(1) A party seeking authorization to deposit funds into the Court’s registry must file with the Court a motion and a proposed order in compliance with Fed. R. Civ. P. 67 and Appendix Q, Orders Regarding Deposit and Investment of Registry Funds.
(2) Upon entry of the authorizing court order, payments for deposit must be made payable to “Clerk, U.S. Bankruptcy Court” and are accepted subject to collection.
(3) IRS regulations require special handling for “Disputed Ownership Funds” (DOF), as defined in 26 CFR § 1.468B-9 (Disputed ownership funds).
(A) Unless otherwise ordered by the Court, interpleader funds that qualify as a DOF under IRS regulations (e.g., eligible cases filed under 28 U.S.C. § 1335 or Fed. R. Civ. P. 22) shall be deposited in the DOF Pool established within the CRIS and administered by the Administrative Office of the United States Courts, which shall be responsible for meeting all DOF tax administration requirements.
(b) Motions for Order Directing Investment of Funds by Clerk.
(1) Any order obtained by a party or parties in an action that directs the Clerk to invest in an interest-bearing account in the registry of the Court pursuant to 28 U.S.C. § 2041 shall include the following:
(A) the amount to be invested;
(B) the designation of the type of account or instrument in which the funds shall be invested; and
(C) a direction that the Clerk deduct from the income earned on the investment a fee of 0.10% or 0.20%, depending upon the type of account or instrument designated.
(2) Unless otherwise ordered by the Court, the order shall comply with the Order in Appendix Q of these Local Rules, and shall direct the Clerk to invest the funds in one of two types of interest-bearing accounts:
(A) CRIS, administered by the Administrative Office of the United States Courts under 28 U.S.C. § 2045, or
(B) Interpleader Funds or the Disputed Ownership Fund (“DOF”) deposited under 28 U.S.C. § 1335, established within the CRIS and administered by the Administrative Office.
(c) Deposit and Receipt of Funds.
(1) The party making the deposit or transferring funds to the Court’s registry shall serve the order permitting the deposit or transfer on the Clerk of Court.
(A) The failure of the party making the deposit or transferring funds to comply with this subsection releases the Clerk from liability for loss of interest upon the money subject to the order of deposit.
(2) The deposit of any money into the registry of the Court shall be as directed by written order of the Court. Funds so deposited shall be invested by the Clerk of the Court in accordance with the terms of the order. All payments for deposit shall be made payable to “Clerk, U.S. Bankruptcy Court” and are accepted subject to collection.
(3) The Clerk must deposit the money pursuant to an order of deposit as soon as practicable following service of a copy of the order by the party making the deposit or transferring funds.
(d) Withdrawal and Distribution of Deposited Funds.
(1) Funds cannot be disbursed from the registry account of the Court without a Court order. Upon final determination of the action or at such other times as may be appropriate, a party or parties may seek a Court order to disburse deposited funds by a filing a motion and a proposed order in compliance with Appendix Q. Funds will be disbursed from the court registry only after the time for appeal of any related judgment or order has expired, or upon approval by the Court of a written stipulation by all parties.
(2) The proposed disbursement order from the Court’s Registry must include a statement whether the stay provisions of FRBP 7062 are applicable, and the disbursement of accrued interest shall only be made if the order so provides.
(3) Any order for the distribution of less than all funds and accrued interest on deposit with the Court shall be denominated “Order for Partial Distribution from the Registry of the Court,” otherwise the order shall be treated as an Order for Final Distribution.
(A) Whenever an Order for Final Distribution from the registry of the Court does not provide for the distribution of all funds or interest on deposit, the Clerk of the Court shall pay such funds into the Treasury of the United States.
(B) This rule applies to both adversary proceedings and bankruptcy cases.
(4) Statement of Payee’s Name, Address, and Tax Identification Number.
(A) Prior to receiving any disbursement from the registry, each payee shall deliver to the Clerk of the Court an executed IRS Form W-9, or other applicable documents.
(B) All orders authorizing disbursement from the registry shall state:
i. the payee’s name, address, tax identification number of any individual(s) or corporation(s) receiving the funds, but redacted to include only the last four (4) digits of the number, and
ii. the amount of principal and interest to be paid to any individual(s) or corporation(s).