IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ALASKA

IN THE MATTER OF THE ASSESSMENT OF A FEE FOR THE ADMINISTRATION OF FUNDS DEPOSITED INTO THE COURT'S REGISTRY AND PLACED IN INTEREST BEARING ACCOUNTS

ORDER

The Judicial Conference of the United States in September 1988, authorized the Director of the ~dministrative Office to impose a fee not exceeding three percent of the principal for the handling of registry funds held in the courts and invested in interest-bearing accounts. The fee was to be assessed from and could not exceed interest earnings. The Director was also instructed to review implementation of the fee and make adjustments from time to time.

As a result of a continuing review of and consultation on the imposition of the fee, the Director has decided that the fee will be revised from a 10-percent (December 1, 1990 revision) rate on all income earned on the accounts to a variable rate based on the amounts deposited with the court and, in certain cases, the length of time funds are held in the courts1 registry.

Accordingly, IT IS HEREBY ORDERED that the revised fee will be a fee of 10 percent of the total income received during each income period from investments of less that $100,000,000 of registry funds in income-bearing accounts. On investments exceeding $100,000,000, the 10 percent fee shall be reduced by one percent for each increment of $50,000,000 over the initial $100,000,000. For those'deposits where funds are placed in the registry by court order for,a time certain, for example, by the terms of an adjudicated trust, the fee will be further reduced. This further reduction will amount to 2.5 percent for each fiveyear interval or part thereof. The total minimum fee to be charged will be no less than two percent of the income on investments.

The new fee applies to all earnings applied to investments on and after the effective date of this change, February 3, 1992, published in the Federal Register November 4, 1991, except for earnings on investments in cases being administered under the provisions of the May 11, 1989 notice, i.e, to which the fee equal to the first 45 days income is applicable. The fee may be deducted periodically, either at the time income is credited to the account or prior to any other distribution. Investments having a maturity date greater than one year may be assessed the fee at the time the investment instrument matures.

DATED at Anchorage, Alaska, this ' day of February, 1992.

                      /S/                                 
ANDREW J. KLEINFELD, Judge

                      /S/                                 
JAMES K. SINGLETON, Judge