CAEB — Order Regarding Deposit and Investment of Registery Funds

Source: https://www.caeb.uscourts.gov/documents/Forms/GeneralOrders/GO.13-01.pdf

FILED

1 UNITED STATES BANKRUPTCY COURT 01/10/13 2 EASTERN DISTRICT OF CALIFORNIA UNITED STATESBANKRUPTCYCOURT EASTERN DISTRICTOFCALIFORNIA 3 In re: 4 ORDER REGARDING DEPOSIT GENERAL ORDER 13-01 AND INVESTMENT OF REGISTRY 5 FUNDS 6 7 ORDER REGARDING DEPOSIT AND INVESTMENT OF REGISTRY FUNDS 8 The Court, having determined that it is necessary to adopt local procedures to 9 ensure uniformity in the deposit and investment of funds in the Court's Registry, 10 IT IS ORDERED that the following shall govern the receipt, deposit and investment 11 of registry funds: 12 I. Receipt of Funds 13 A. No money shall be sent to the Court or its officers for deposit in the Court's 14 registry without a court order signed by the presiding judge in the case or 15 proceeding. 16 B. The party making the deposit or transferring funds to the Court's registry 17 shall serve the order permitting the deposit or transfer on the Clerk of Court. 18 C. Unless provided for elsewhere in this Order, all monies ordered to be paid 19 to the Court or received by its officers in any case pending or adjudicated 20 shall be deposited with the Treasurer of the United States in the name and 21 to the credit of this Court pursuant to 28 U.S.C. § 2041 through depositories 22 designated by the Treasury to accept such deposit on its behalf. 23 II. Investment of Registry Funds 24 A. Where, by order of the Court, funds on deposit with the Court are to be 25 placed in some form of interest-bearing account, the Court Registry 26 Investment System ("CRIS"), administered by the Administrative Office of the 27 28

1 United States Courts under 28 U.S.C. § 2045, shall be the only investment 2 mechanism authorized. 3 B. The Director of Administrative Office of the United States Courts is 4 designated as custodian for CRIS. The Director or the Director's designee 5 shall perform the duties of custodian. Funds held in the CRIS remain subject 6 to the control and jurisdiction of the Court. 7 C. Money from each case deposited in the CRIS shall be "pooled" together with 8 those on deposit with Treasury to the credit of other courts in the CRIS and 9 used to purchase Government Account Series securities through the Bureau 10 of Public Debt, which will be held at Treasury, in an account in the name and 11 to the credit of the Director of Administrative Office of the United States 12 Courts. The pooled funds will be invested in accordance with the principals 13 of the CRIS Investment Policy as approved by the Registry Monitoring 14 Group. 15 D. An account for each case will be established in the CRIS titled in the name 16 of the case giving rise to the investment in the fund. Income generated from 17 fund investments will be distributed to each case based on the ratio each 18 account's principal and earnings has to the aggregate principal and income 19 total in the fund. Reports showing the interest earned and the principal 20 amounts contributed in each case will be prepared and distributed to each 21 court participating in the CRIS and made available to litigants and/or their 22 counsel. 23 Ill. Deductions of Fees 24 A. The custodian is authorized and directed by this Order to deduct the 25 investment services fee for the management of investments in the CRIS and 26 the registry fee for maintaining accounts deposited with the Court. 27 28

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1 B. The investment services fee is assessed from interest earnings to the pool 2 according to the Court's Miscellaneous Fee Schedule and is to be assessed 3 before a pro rata distribution of earnings to court cases. 4 C. The registry fee is assessed by the custodian from each case's pro rata 5 distribution of the earnings and is to be determined on the basis of the rates 6 published by the Director of the Administrative Office of the United States 7 Courts as approved by the Judicial Conference of the United States. 8 IV. Transition From Former Investment Procedure 9 A. The Clerk of Court is further directed to develop a systematic method of 10 redemption of all existing investments and their transfer to the CRIS. 11 B. Parties not wishing to transfer certain existing registry deposits into the CRIS 12 may seek leave to transfer them to the litigants or their designees on proper 13 motion and approval of the judge assigned to the specific case. 14 IT IS FURTHER ORDERED that this order supersedes and abrogates all prior 15 orders of this Court regarding the deposit and investment of registry funds. 16 17 DATED: FOR THE COURT: JAN 1 0 2013 18 19 20 21 22 23 24 25 26 27 28

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