Local Civil Rules for the District of Alaska
Page 32
(b) Investment of Registry Funds
(1) Unless otherwise ordered by a district judge, all funds deposited in the registry of
the court in which the principal equals or exceeds $5000 are to be placed in an
interest-bearing account. The Court Registry Investment System (“CRIS”),
administered by the Administrative Office of the United States Courts under 28 U.S.C.
§ 2045, will be the only investment mechanism authorized.
(2) 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.
(3) The Director of the Administrative Office of the United States Courts is designated
as custodian for CRIS. The Director or the Director’s designee will perform the duties
of custodian. Funds held in the CRIS remain subject to the control and jurisdiction of
the court.
(4) Money from each case deposited in the CRIS will be “pooled” together with those
on deposit with the 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 the Treasury, in an account in the name and to the credit of the
Director of the Administrative Office of the United States Courts. The pooled funds
will be invested in accordance with the principals of the CRIS Investment Policy as
approved by the Registry Monitoring Group.
(5) An account for each case will be established in the CRIS titled in the name of the
case giving rise to the investment of 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.
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.
(6) 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 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