CAEB — Order Adopting Revisions to Local Bankruptcy Rules

Source: https://www.caeb.uscourts.gov/documents/Forms/GeneralOrders/GO.16-05.pdf

Sparse pages use OCR; original PDF remains authoritative.

FILED 10/21/2016

UNITED STATESBANKRUPTCYCOURT EASTERN DISTRICTOFCALIFORNIA

= oO ON Oo Fk WwW DN (2) (3) (4) (5) (6) a court-approved, interest-bearing instrument in accordance with Rule 67 of the Federal Rules of Civil Procedure, the Court Registry Investment System (“CRIS”), administered by the Administrative Office of the United States Courts under 28 U.S.C. § 2045, shall be the only investment mechanism authorized. Interpleader funds deposited under 28 U.S.C. § 1335 meet the IRS definition of a “Disputed Ownership Fund” (DOF), a taxable entity that requires tax administration. Unless otherwise ordered by the court, interpleader funds shall be deposited in the DOF 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. The Director of Administrative Office of the United States Courts is designated as custodian for all CRIS funds. The Director or the Director's designee shall perform the duties of custodian. Funds held in the CRIS remain subject to the control and jurisdiction of the Court. Money from each case deposited in the CRIS shall be “pooled” together with those on deposit with Treasury to the credit of other courts in the CRIS and used to purchase Government Account Series securities through the Bureau of Public Debt, which will be held at Treasury, in an account in the name and to the credit of the Director of Administrative Office of the United States Courts. The pooled funds will be invested in accordance with the principles of the CRIS Investment Policy as approved by the Registry Monitoring Group. An account will be established in the CRIS Liquidity Fund titled in the name of the case giving rise to the deposit invested in the fund. Income generated from fund investments will be distributed to each case based on the ratio each account’s principal and earnings has to the aggregate principal and income total in the fund after the CRIS fee has been applied. Reports showing the interest earned and the principal amounts contributed in each case will be prepared and distributed to each court participating in the CRIS and made available to litigants and/or their counsel. For each interpleader case, an account shall be established in the CRIS Disputed Ownership Fund, titled in the name of the case giving rise to the deposit invested in the fund. Income generated

= Co oOo AN ODO oO KR WwW DN 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (d) (e) from fund investments will be distributed to each case after the DOF fee has been applied and tax withholdings have been deducted from the fund. Reports showing the interest earned and the principal amounts contributed in each case will be available through the FedInvest/CMS application for each court participating in the CRIS and made available to litigants and/or their counsel. On appointment of an administrator authorized to incur expenses on behalf of the DOF in a case, the case DOF funds should be transferred to another investment account as directed by court order. Fees and Taxes. (1) The custodian is authorized and directed by this Order to deduct the CRIS fee of an annualized 10 basis points on assets on deposit for all CRIS funds, excluding the case funds held in the DOF, for the management of investments in the CRIS. According to the Court’s Miscellaneous Fee Schedule, the CRIS fee is assessed from interest earnings to the pool before a pro rata distribution of earnings is made to court cases. (2) The custodian is authorized and directed by this Order to deduct the DOF fee of an annualized 20 basis points on assets on deposit in the DOF for management of investments and tax administration. According to the Court's Miscellaneous Fee Schedule, the DOF fee is assessed from interest earnings to the pool before a pro rata distribution of earnings is made to court cases. The custodian is further authorized and directed by this Order to withhold and pay federal taxes due on behalf of the DOF. Order for Disbursement of Registry Funds. Payment of funds from any funds deposited pursuant to this Rule shall be by order of the Court only. The form of order submitted shall contain the names and addresses for each of the parties to whom funds are to be paid, the amounts to be paid, the percentage of interest earned to be paid to each party and a statement acknowledging that the fees on the interest earned will be deducted before payment of funds will be distributed. Taxpayer information for each party must be submitted on form AO 213, which is available on the Court’s website. Funds shall be disbursed only after the time for appeal of the related judgment or order has expired, or upon approval by the court of a written stipulation by all parties.

= (f) Copy of Order. Counsel obtaining an order as described above will serve a copy on the Clerk, when the order has been signed. LBR 9014-1(d)(7) is modified to provide: Affidavits and declarations shall comply with Fed. R. Civ. P. 56(c)(4) DATED: October 21, 2016 Co Oo ON DODO KR WwW DN i Michael S. McManus Bankruptcy Judge Robert S. Bardwil Fredrick E. Clement Bankruptcy Judge Bankruptcy Judge Christopher D. Jaime [Rene Lastreto, Il Bankruptcy Judge ~ Bankruptcy Judge