[PDF] - Piece of the Puzzle, Part of the Whole Hon. Lisa David was sworn PDF Document

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2019 County and District Clerks’ Association of Texas Winter Education Conference

January 28-31, 2019 Embassy Suites by Hilton Hotel Conference Center & Spa, San Marcos

Piece of the Puzzle, Part of the Whole

Registry

Wednesday, January 30, 2019 10:45 a.m.–noon

Hon. Lisa David

Williamson County District Clerk

Hon. Tammy Kneuper

Bandera County District Clerk

This session will be a discussion on registry of the court and escheating funds by the clerk.

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Hon. Lisa David was sworn in as Williamson

County district clerk in 2007. She began working in the District Clerk’s Office in 1981 and has served as deputy district clerk and assistant chief deputy. David serves on the Legislative Committee, Indigent Defense Committee, Bail Bond Board, OCA Protective Order Task Force Committee and OCA Collection of Data Task Force and was just recently named the 2018 District Clerk of the Year. She currently serves as president of the Texas District Court Alliance. She has been married to Bobby for 39 years and has four children and seven grandchildren.

Hon. Tammy Kneuper currently holds the office of

Bandera County district clerk, a position held since 1999 when the county and district clerk offices divided due to increased population. She is a member

f the County and District Clerks Association

and has served on the board and various committees in the Association. She is currently serving as the immediate past president. She is a member of the Texas District Court Alliance and currently serves as a director and secretary for the organization. Kneuper has been married to Gerald, her friend and life partner of 46

years. They have two children, Charles Kneuper and

Shannon Miller, three grandsons and

ne
granddaughter. She and her husband live on the family

farm in Medina.

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1

REGISTRY OF THE COURT

Presented by: Lisa David, Williamson County District Clerk

Each District and County Clerk must maintain
a bank account to receive money ordered
tendered into the court’s registry.
All funds must be deposited if they are to be
held more than 3 days.
Registry of the Court
The clerk should keep a record of all funds
tendered into the court’s registry that includes:
1.

The cause number.

2.

The style of the case.

3.

Instructions regarding the investment or disbursement of the funds.

4.

An accounting of all withdrawals and deposits.

Registry of the Court

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2

Types of Registry Funds

Funds of minors or incapacitated persons

1.

Funds tendered in an interpleader action

2. 3. 4. 5. 6. 8. 7.

Funds paid in satisfaction of a judgment Child support funds held for more than 3 days Cash bonds Cash bail bonds Funds in an eminent domain case and Any other funds tendered to the clerk for deposit into the registry of the court.

Chapter 142, Property Code-minor funds
Sec. 31.008 Civ. Prac. & Rem. Code- payment of

judgments

Art. 17.02 Code of Criminal Procedure-bail bonds
Chapter 72 – 76 Property Code-Escheat &

Unclaimed Property

Registry of the Court

REFERENCE THE FOLLOWING STATUTES FOR

ADDITIONAL INFO ON REGISTRY FUNDS:

A CLERK SHALL ACT ONLY IN A CUSTODIAL CAPACITY

IN RELATION TO THE REGISTRY FUND, A SPECIAL ACCOUNT, OR A SEPARATE ACCOUNT.

A CLERK IS NOT THE TRUSTEE FOR THE BENEFICIAL

OWNER AND DOES NOT ASSUME THE DUTIES, OBLIGATIONS, OR LIABILITIES OF A TRUSTEE FOR A BENEFICIAL OWNER.

LGC 117.0521

CUSTODIANSHIP

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3

The registry account may earn interest. The registry account may not earn interest.

MANAGEMENT OF REGISTRY FUNDS

The clerk has two options when deciding on the type of registry to open:

r

Interest Bearing Account Non-Interest Bearing Account

A.

Make a written request to the commissioner’s court that the contract include a provision that funds in a special account in the clerk’s name earn interest.

B.

The application of a bank that seeks to become the county depository must be accompanied by a certified or cashier’s check for an amount equal to one‐half of one percent of the average daily balance of the registry funds held by the clerk during the preceding calendar year. The clerk must calculate this amount and include the figure to the commissioner’s court requesting that the registry account earn interest.

IF THE CLERK ELECTS TO HAVE THE REGISTRY ACCOUNT EARN INTEREST THE CLERK MUST DO THE FOLLOWING NOT LATER THAN THE 30TH DAY BEFORE THE DATE THE COUNTY GIVES NOTICE THAT THE COUNTY WILL ACCEPT APPLICATIONS TO THE DEPOSITORY.

Interest Bearing Account

If the registry account or any separate accounts earn interest,

the clerk must keep a record of the amount of interest earned and the amount to each case.

The clerk shall pay 10% of any interest earned to the general

fund of the county to compensate the county for the accounting and administrative expense of maintaining the accounts.

LGC 117.054

Interest Bearing Account

IF THE CLERK ELECTS TO HAVE THE REGISTRY ACCOUNT EARN INTEREST . . . .

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4

the clerk shall, at the time of withdrawal, deduct from the

amount of the withdrawal a fee in the amount of 5% of the withdrawal but not to exceed $50.

WITHDRAWAL OF FUNDS GENERATED FROM A CASE ARISING

UNDER THE FAMILY CODE ARE EXEMPT FROM THE FEE DEDUCTION.

LCG 117.055

TO COMPENSATE THE COUNTY FOR THE ACCOUNTING AND ADMINISTRATIVE EXPENSES INCURRED IN HANDLING THE REGISTRY FUNDS THAT HAVE NOT EARNED INTEREST…

Non- Interest Bearing Account

The clerk shall transfer any registry funds into a separate account only when

directed to do so by a written order of the court of proper jurisdiction or when the clerk is required under the probate code 887 Investment of funds as follows:

1.

In a financial institution doing business in the state and that is insured by FDIC

2.

United States treasury bills

3.

An eligible investment pool that meets requirements of Sections 2256.016, 2256.017 and 2256.019, Government code (ex. TexPool )

4.

A no‐load money market mutual fund, if the fund:

A. Is regulated by the Securities Commission and Exchange

Commission

B. Has a dollar weighted average stated maturity date of 90 days or

fewer and

C. Includes in its investment objectives the maintenance of a stable

net asset value of $1 for each share

D. A structured settlement account

LGC 117.053 and Prop Code 142.008 and 142.009

INVESTMENT OF FUNDS

Unless otherwise provided by statute or rule, registry funds

are to be disbursed only by a court order.

When an order is received, the clerk will disburse the funds

to the proper party according less administrative fees .

LGC 117.054 and 117.055

DISBURSEMENT OF REGISTRY FUNDS

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5

In a suit in which a minor or incapacitated person who has

no legal guardian is represented by a next friend or an appointed guardian ad litem, the court, on a motion from the parties, may provide for a structured settlement that:

1.

Provides for periodic payments; and

2.

Is funded by:

A. An obligation guaranteed by the United States

government; or

B. An annuity contract that meets the requirement of

Section 142.009.

STRUCTURED SETTLEMENT PAYMENTS TEXAS PROPERTY CODE 142.008

The person obligated to fund a structured settlement shall

provide to the court:

1.

A copy of the instrument that provides funding for the structured settlement; or

2.

An affidavit from an independent financial consultant that specifies the present value of the structured settlement and the method by which the value is calculated.

A structured settlement provided for under this section is

solely for the benefit of the beneficiary of the structured settlement and is not subject to the interest payment calculations contained in Section 117.054, Local Government Code.

Prop Code 142.008

STRUCTURED SETTLEMENT PAYMENTS

Personal property is assumed abandoned if dormant for

longer than a period of 3 years.

Section 72.101 Property Code

Any funds deposited under this chapter, except cash bail

bonds, that are presumed abandoned under Chapter 72,73 or 75, Property Code, and exceed $250, shall be reported and delivered by the county or district clerk to the comptroller without further action by any court.

Section 117.002 Local Government Code

DORMANCY PERIOD IS THREE YEARS FOR ALL PROPERTY

TYPES EXCEPT WAGES, WHICH ARE ONE YEAR.

ESCHEAT FUNDS

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6

Each holder, who on March 1st, holds proper subject to this

chapter shall file a report of the property on or before the following July 1st.

Each report is filed with the treasurer of the holder.
All should be done to notify the owner of the funds you are

holding and a record kept of the last known address even though mail may have been returned.

ESCHEAT FUNDS

Recommendations:
On or around March 1st of each year, review your accounts

and identify funds that meet the 3 year dormancy period.

Notify the property owners of the funds/property that are

being held and keep all documentation of your efforts to notify owners. Notices are to be sent no later than May 1st.

On or before July 1st, complete the required forms and submit

to comptroller.

ESCHEAT FUNDS
The sale of property for delinquent taxes may generate excess

funds over and above the judgment.

These funds are turned over to the clerk issuing the order of

sale to be placed in the registry and disbursed according to the law or as ordered by the court.

The tax code requires the clerk to send out notices to the

former owner of the property that excess funds have been paid into the court’s registry.

The retention period for these funds is 2 years.

EXCESS FUNDS

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7

If the amount of excess proceeds is more than $25, the clerk is

required to send notice before the 31st day after the date the proceeds are received by the clerk.

The notice is sent certified mail return receipt requested to the

former owner of the property at the last known address according to the records of the court or any other source reasonably available.

Property Tax Code 34.03

Regardless of the amount of the excess proceeds the clerk is to

keep the funds in the registry of the court for a period of 2years.

Property Tax Code 34.02

EXCESS FUNDS

A person, including a taxing unit, may file a petition setting

forth a claim to the excess proceeds from a tax sale.

The petition must be filed within 2 years from the date of the

sale.

The petition does not have to be filed as a new suit.
The petition can be filed in the underlying tax cause.
INTEREST AND COSTS ARE NOT ALLOWED UNDER THIS

SECTION.

CLAIMS FOR EXCESS PROCEEDS
A fee charged by an attorney to obtain excess proceeds for an
wner may not be greater than 25% of the amount obtained or

$1000, whichever is less.

A person who is not an attorney may not charge a fee to obtain

excess proceeds for an owner.

CLAIMS FOR EXCESS PROCEEDS

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8

In some instances the judgment debtor may wish to clear

his/her credit or title to property and must pay a judgment to accomplish this.

A judgment debtor is allowed to pay to the court that rendered

the judgment the amount under the judgment owed to a judgment creditor whose location is unknown to the judgment debtor if the judgment debtor complies with Subsections (b) and (c) of the code.

The payment must be made without offset or reduction.
The judgment debtor shall prepare a recordable release of the

judgment and the judge or clerk shall execute the release of the judgment on behalf of the creditor and issue the release to the debtor.

PAYMENT OF UNCLAIMED JUDGMENT

Before being entitled to pay a judgment to the court the

judgment debtor must send a letter notifying the judgment creditor of the judgment by registered or certified mail to…..

1.

Judgment creditor’s last known address

2.

Address appearing in the judgment creditor’s pleadings

r other court record, if different from the last known

address.

3.

Address of judgment debtor’s last attorney as shown on the pleadings and

4.

The address of the judgment creditor’s last attorney as shown in the records of the State Bar of Texas if that address is different from the pleadings.

PAYMENT OF UNCLAIMED JUDGMENT

Once the funds are placed in the registry of the court, the clerk

will hold the funds in an interest bearing account.

The clerk must pay the funds and any interest earned to the

judgment creditor or to the successors to the rights of the judgment creditor.

The clerk may presume the funds are payable to the judgment

creditor unless furnished with a written assignment of the judgment by the court.

Chapter 72, Property Code.

PAYMENT OF UNCLAIMED JUDGMENT

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9

TEXAS SENATE BILL 1589 TEXAS SENATE BILL 1589

SLIDE 12

REGISTRY OF THE COURT

Compiled by Tammy Kneuper and Jeane Brunson, Former Parker County Clerk

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REGI REGISTRY O OF T THE C E COURT URT

Co Compiled b by y Tammy K Kneuper, B , Bandera ra C County ty D Distri trict C t Clerk rk and nd Jea eane B e Brunson, F Former P r Park rker C County C Cle lerk rk

Regis istry ry o

f th

the Court: Identif ifyin ing, C Calculatin ting a and Accountin ting Instances frequently arise in the course of civil proceedings in which the deposit

f funds may be required or permitted for the protection or convenience of the
parties. When, in the course of a civil action or proceeding, it appears that a

fund to which there are conflicting claims is in danger of loss or depletion, the court may compel the party holding the fund to pay such funds into the Regis istry ry

f
f t

the C Cou

urt. Other circumstances in which deposits might be permitted may

arise after judgment has been rendered. (Reference: 23 AM Jur 2d Sec. 1 and Sec.2)

A V A VERY B BRIEF L LESSON SSON IS H S HIST STOR ORY!

In 1973, Attorney General John Hill stated, “We believe that any money deposited in court to satisfy the result of a legal proceeding or to await the result of a legal proceeding falls within the scope of The Local Government Code (LGC), Section (Sec) 11 (now LGC Sec. 117.052. 117.053) ……Any funds fitting this definition are trust funds and, if in the possession of the county or district clerk, may be deposited in the county depository for trust funds”. Prior to the 75th Legislative session (1997), the statutes did not give clear direction to the clerk regarding registry funds. It also changed the word “tru trust“to “re regis istry ry” and defined the clerk as Custodia ian of the fund, not T Tru ruste tee. . This change in terminology removed any liability of the clerk as a Trustee as

utlined more specifically later.

WHA HAT IS T IS THIS T IS THING C CAL ALLED “ “REGIST STRY OF OF T THE C COU OURT”?

Oddly enough, a definition is not to be found in the statutes for “Registry of the Court”. You will find the words referenced many times throughout the statutes without absolute definition. Therefore, it appears the words have become “common law” having been handed down verbally for years. Registry generally means a place where a written record is maintained. “Registry” is defined as the act of recording or writing in the register or

SLIDE 14

2 depositing in the place of public records. So, in the case of the Registry of the Court, the clerk must maintain a separate record and track money or any asset

f value deposited with the court to be held for others.

LGC, Sec 117.011, Definitions, shows the meaning of: (3) “Registr try f fund” means funds tendered to the clerk for deposit into the registry of the court. (4) “Separ arate ac acco count” means funds transferred from a special account into a separate interest bearing account. (5) “Speci cial a al acco count” means an account in a depository in which registry funds are placed.

YOU OURS, S, M MINE OR OR OU OURS S – WHO’S ’S F FUND IS IS IT IT?

(A.G. Letter of Opinion No. 960023) “A sum of money placed in the county trust fund depository is not owned by the county but is only held in trust for the litigant who established his or her right to it. The funds are controlled by the clerk subject to the orders of the court.” The clerk of the court shall hold anything deposited or tendered to the registry

f the court, but the registry is under the direction of the court. The court, in

the acceptance and administration of the funds deposited into the registry of the court, sits as a Court of Equity, its jurisdiction being basically derived from Article 5, Sec 8 of the Texas Constitution. Until the court, in exercise of its equitable powers, enters an order to the contrary, the cle clerk o k of t the c court w will h ll hold the he d depo posit made into the registry of the court in his or her official capacity. Harris County v. Sellers 468S.W.2d 950 (Tex Civ App-Houston, 1971) LGC, Sec 117.053(b) states, in part,…… a clerk rk may n not d t draw o w on a a s specia ial ac acco count f fund held by a depository except to pay a person entitled to the funds. The payment mu must be made under an ord rder o r of th the c court rt of proper jurisdiction in which the funds were deposited ex excep ept that an ap appeal b al bond shall be paid without a written order of the court on receipt of mandate or dismissal”…”funds deposited under Tx Probate Code, Sec 887, maybe paid without a written order of the court.

AN E EXCEPTI TION T TO TH THE R RULE LE-PAYMENT ENT W WITHOUT ORD RDER ER!

Compliance with Federal Tax Law is mandatory for any person having a taxable interest in funds deposited. That party is responsible for submitting the necessary and appropriate information to the clerk so the interest earned on the

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3 fund can be timely reported to the I.R .R.S .S. by the clerk. The information to be provided, i.e., Social Security number, tax forms, date of birth, etc., is not subject to the public information act, or in other words, is not an open record – unless – it is necessary to do so to comply with the federal tax law requirements. The clerk of the court is autho horized t to pa pay any or all of the interest earned on the fund, without ut c cour urt o

rder

der, to the I.R. .R.S. to satisfy tax withholding

requirements. (LGC, Sec 117.003(a) and (b)

EXCEPTION IONS, S, E EXCEPTION ONS, S, E EXCEPTIONS! S!

A court o t ord rder is r is n not r t require red to withdraw funds from the registry of the Court, or special accounts, if the county commissioner’s court has selected a new w dep

depository. Once the new depository qualifies, the clerk of the court shall

transfer the funds from the old depository to the new depository. Clerks may write checks on the accounts held in the old depository just for this purpose. (LGC, Sec 117.053(a) As stated earlier, a clerk may not draw a check on special account funds except to pay a person entitled to the funds. The payment must be made under an

rder of the court of proper jurisdiction in which the funds were deposited.

Remember, the one exception to this rule - an APPE PPEAL B BOND shall be p be paid d without ut o

rder

der of

f t

the c cou

urt on receipt of mandate or dismissal and funds

deposited under TX Probate Code, Sec 887

SE SEPAR ARAT ATE AC ACCOUNT – HOW “ “INT NTERES ERESTING NG”!

(The definit itio ion of a separ arat ate a acco ccount (LGC, Sec 117.001): funds transferred from a special account into a separate intere rest-bea bearing account. The def definitio ion of a speci cial acco account is an account in a depository in which registry funds are placed. The clerk of the court shall transfer any registry funds into a separate account when ordered to do so by written order of the proper court or when the clerk is required to per TX Probate Code, Sec 887. (LGC, Sec. 117.053). The clerk shall transfer the funds into a separate account, as follows:

1. Interest-bearing deposits in a financial institution doing business in

this state and is insured by the Federal Deposit Insurance Corporation. (FDIC)

2. United States treasury bills:

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4

3. An eligible Interlocal investment pool that meets the requirements of

Sections 2256.016, 2256.017, and 2256.019, Government Code; or

4. A no-load money market mutual fund, if the fund:
A. is regulated by the Securities and Exchange Commission;
B. Has a dollar weighted average stated maturity of 90 days or fewer;

and

C. Includes in its investment objectives the maintenance of a stable net

asset value of $1. for each share. (LGC, Sec 117.053 and TX Property Code, Sec 142.004. When choosing one of the investment provisions, the clerk must address the issues of safety and security of the fund, the liquidity of the fund (being sure the funds are available when the release of funds is ordered by the court) and receiving the highest yield for the time to be held (amount of interest that will be paid by the depository).

TO B O BE SAF SAFE OR OR NOT OT T TO B O BE – TH THAT I T IS TH THE Q QUESTI TION

Certificates of Deposits (CD) once were questioned as being a safe investment. Any funds invested by a person in his/her name, using their social security number and/or tax i.d., which were invested prior to the clerk having the need to

pen a separate account could potentially be a problem if made in the same

financial institution as the county depository. The social security number and/or tax i.d. automatically connected the all the recipient’s investments, including the funds held by the clerk as custodian. There is now a question as to if there is ample insurance to cover all accounts of the recipient, including the new separate account opened by the clerk. The total of all accounts, including CD’s held in the same name (recipient), in the same depository are insured up to $150,000 total – not individually. If you, as clerk, prefer to invest in a CD, because of a higher interest rate or other feasible reason, a CD may be purchased in the name of the clerk as custodian for the recipient, naming the recipient on the CD. (Example: Ima Smartone, Co./Dist. Clerk, Custodian for John Doe, Jr.) Use the social security &/or tax i.d. number of the recipient. The new CD or account opened by the clerk is held in a name other than just the recipient and will be insured.

I H HAV AVE T TO H O HOL OLD “ “WHAT AT” IN T N THE HE REGI REGISTRY O OF T THE C E COURT URT?

Although it is preferable, the statutes do do n not r req equi uire a e an o

rde

der o

f t

the c e court before the clerk accepts registry funds to be deposited with or held by the clerk of the court.

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5 In addition to money, the Registry of the Court may hold an any t tan angible item. These items may include jewelry, documents, books, coin collections, family heirlooms, photos, anything of value capable of being delivered to the clerk. At the time a tangible item is delivered to the clerk to be held in the registry of the court, I suggest an immediate and complete inventory is performed, put into writing, and the person depositing same sign an affidavit which specifically names the tangible items. It is advi visab able le, but not required by statute, the clerk require an apprai aisal al of any property in which the value may be questioned at the time of withdrawal. The clerk of the court has certain liability regarding these items as stated in Civil Practice and Remedies Code, Sec 7.002: (a) An officer who has custody of a sum of money, a debt, an instrument, or

ther property paid to or deposited with a court pending the outcome of a

cause of action shall seal the property in a secure package in a safe or bank vault that is accessible and subject to the control of the court. (b) The officer shall keep in his office as part of his records an itemized inventory of property deposited with the court. The inventory must list the disposition of the property and the account for which the property was received (c) At the expiration of the officer’s term, the officer shall transfer all deposited property and the inventory to the officer’s successor in

ffice. The successor shall give a receipt for the transferred property and

the inventory. (d) This section does not exempt an officer or the officer’s surety from liability on the officer’s bond due to neglect or other default in regard to the deposited property. Although it is not mandatory, an itemized list of the tangible items should be created after appraisal, along with identification numbers or markings of any kind listed. The list should be reviewed and signed as to content and correct listing of items deposited by the person depositing same, under oath.

JUST LE T LET ME E SEE EE TH THE MO MONEY!

The Court may order the clerk to invest funds in a separate account. This order gives the clerk a slightly more involved role than that of a “custodian” in its usual definition. It is the clerk’s primary responsibility to safeguard assets. The clerk should not sacrifice protecting the investment because of an opportunity for enhanced income through interest. (LGC, Sec 117.053) This is also

SLIDE 18

6 supported by AG Opinions JM-1162 and DM-282. “…statutes that delineate the liability of county and district clerks in regard to their handling of trust funds deposited in court do not identify the failure to deposit in separate accounts or in interest bearing accounts as a source of liability for the clerks.” (Civ. Prac. &

Rem. Code, Sec 7.002.)

The county shall go through the proper procedure for selecting a county depository for registry funds to be held by the clerk of the court in the same manner required for the selecting the depository for other county funds. The clerk of the court having legal custo tody of funds to be held more re th than th thre ree d days shal all deposit the money in the depository chosen by the county. The funds deposited shall be carried at the county depository as a special account in the name of the clerk making the deposit. (LGC, Sec 117.052) Once the money has been properly deposited in the county’s depository in the registry fund held the name of the clerk making the deposit, the clerk

f the court is relieved of the responsibility for keeping the funds secure.

The clerk depositing the money, however, is not released from: (1) liability for a loss of registry funds resulting from the clerk’s official misconduct, negligence, or misappropriation of the funds; or (2) responsibility for keeping the registry funds safe until the clerk deposits them in the depository selected by the county. (LGC, Sec 117.081.

I A AM C CUST STOD ODIAN IAN – DON’T C T CALL M LL ME TR TRUSTE TEE

LGC, Sec 117.0521 specifically states the clerk shall n not a act t as t tru ruste tee for the beneficial owner of the fund and does not assume the duties, obligations, or liabilities of the trustee in any way. The clerk shall act only in a custodial capacity in relation to any registry/special account. Although custodian and trustee are similar terms, a trustee is more than a custodian because a trustee must manage funds for the benefit of the beneficial

wner, which creates an additional liability. Definitions are:

Custo todia ian: One that has charge of something; a caretaker; the custodian of a minor child’s estate’ the custodian of an absentee landlord’s property. Tru ruste tee: One, such as a bank, that holds legal title to property in order to administer it for a beneficiary. As custodian of registry funds, the clerk is responsible for safeguarding assets and mai aintai aining a a s separ arat ate a acco ccounting for each owner whether the owner is a child, a defendant, a law firm, a business, or other entity. The clerk must keep an accur urate a e and i d itemi mized i d inven entor

ry of property whether it is tangible property or

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7

cash. (Civil Prac. & Rem. Code, Sec. 7.002) Consider the consequences of this

requirement thoroughly before commingling cash in an interest bearing account.

INTE TERESTE TED I IN INTE TEREST? T?

If a special or separate account earns interest, at the time of withdrawal the clerk of the court shall pay in the manner directed by the court. This amount shall include the original amount deposited into the registry of the court and any interest earned. The calculation of the payment shall be: Interest earned: 10 10% o

f t

the i interes est ea earned ed shall be paid to the general fund of the county for accounting and administrative expenses of maintaining the account. Interest earned: 90 90% o

f t

the i e interes est ea earned ed shall then be credited back to the special or separate account. After adding 90% of the interest back to the special

r separate account, the total amount shall be paid as directed.

A speci cial a acco ccount e ear arning i interest, not a separate account, you must calculate the individual interest earned by the funds to be paid out. In other words, if the court orders the clerk to pay a person, business, or other entity, money held in the interest bearing registry account, the clerk must calculate the exact amount

f interest earned only for the total sum of money deposited for that one person

before the money can be distributed. If money is being held in the registry account (special account) for more than one person, it could be a mathematical nightmare! Many chose to open non-interest bearing registry accounts. If it is the desire of the party or their attorney for the money to be deposited into an interest bearing account, the order of the court should be specific to that subject.

TAKE I E IT FRO ROM “ “FEES EES”…

With the exception of funds generated from a case under the TX F Fami mily C Code de, funds held in the registry of the court (special fund) which do not earn interest shall have 5% 5% o

f t

the a amoun unt h hel eld, up t to $ $50 50., from the amount being paid to the interested party. This amount (up to $50.) shall be deposited in the general fund

f the county. (LGC, Sec 117.055) A court order is not needed to withhold this

fee.

DON’T B BLAME ME ME

SLIDE 20

8 A county or district clerk is no not r responsi nsible for

r l

loss of registry funds (special or separate) resulting from the fa failur ure o e or n neg egligen ence o e of a a dep depository o

r ba
bank. The

clerk of the court, however, is is re responsib ible for: 6 (1) loss of registry funds resulting from the clerk’s official misco conduct ct, , neglig igence, o

r m

misappro ropria iatio ion of the funds; or (2) responsibility for keeping the registry funds safe until the clerk deposits them in the depository selected by statute by the commissioner’s court. Once the clerk de deposits t the f fun unds ds in the county depository, the clerk is reliev eved ed

f a

all re responsib ibil ilit ity for keeping the funds secure. (LGC 117.081) If the funds are lost for any reason after er bei being dep deposited ed, other than neglect by the clerk previously outlined, including a loss due to the insolvency of the depository (bank), the co county i is l liab able le to the rightful owner of the funds for the full amount of the funds due the owner.

MIST ISTAKES D S DO H O HAP APPEN

State law req equires es the county and district clerks to have a sur urety bo bond a d and e d errors and o

missio

ions i insura rance due to the large amount of funds handled by the clerks. Additionally, distr tric ict c t clerks mus must h have insurance or similar coverage to cover losses from burglary, theft, robbery, counterfeit currency, or destruction. Surety bonds provide protection against illegal or fraudulent acts of elected

fficials and employees. Errors and omissions insurance cover mistakes by the

clerk and/or the clerk’s deputies in performance of their official duties. In lieu

f the bonds, a county may self-insure against any losses that would have been

covered by a bond. A county may also establish a contingency fund to provide coverage if it is determined that insurance coverage is not available for a reasonable cost. (Govt. Code, Sec 51.310; LGC, Sec 82.003)

IF I IT’S N S NOT OT M MINE, W WHO’S M S MON ONEY IS T IS THIS?

The clerk of the court is responsible for funds deposited into the registry fund from the following sources:

1. funds of minors or incapacitated persons;
2. funds tendered in an interpleader action;
3. funds paid in satisfaction of a judgment;
4. child support funds held for more than three days;
5. cash bonds;
6. cash bail bonds;

SLIDE 21

9

7. funds in an eminent domain proceeding; and
8. other funds tendered to the clerk for deposit into the registry of the court.

(LGC 117.052(c) This includes money awarded under Property Code to a minor or an incapacitated person who has no legal guardian. It also includes money held in certain probate cases. AG Opinion JM-1162, in part, states “we find no statutory provision relating to “minor’s trust funds”. Property Code 142 specifies funds awarded to a minor are paid into the registry of court. Section 142.001, Management By Decree, states, in part, (a) In a suit in which a minor or incapacitated person who has no legal guardian is represented by a next friend or an appointed guardian ad litem, the court, on application and hearing, may provide by decree for the investment of funds accruing to the minor or other person under the judgment in the suit.

WHAT D DOES I INT NTERP ERPLEA EADER HA ER HAVE T E TO D DO WITH T H THI HIS?

This is a civil case matter – not criminal – and involves funds to be held by the clerk in civil cases. When ownership of certain property is disputed and an innocent holder of the property wants to avoid potentially multiplying the liability, the holder can file an inter erplea eader er action. The disputed property may be deposited with the court pending resolution of all claims. Sometimes the court will require rent or other income to be paid to the clerk until the matter is settled. For clerks serving family courts, they may also hold property pending distribution in the final settlement of a divorce case.

(I C CAN’T G T GET N T NO..) SAT SATISF SFAC ACTION ON OF OF A J A JUDGMENT

Judgments may be paid through the registry of the court by order of the court

r statute. The court may order payment through the registry to provide a

court record to show proper payment has been made. Sometimes judgment debtors wish to clear his/her credit to title to property and must pay a judgment to do so. A judgment debtor is allowed to pay the court rendering the judgment the amount owed to a creditor whose location is unknown. The judgment debtor must comply with all notification requirements of Civil Practice & Remedies Code, Sec. 31.008.

SLIDE 22

10

Gov. Code, Chapter 28 requires justices of the peace to make monthly

transfers of unclaimed judgments to the county ty c clerk

rk. These are handled the

same as other funds paid in satisfaction of a judgment. (We note that funds paid in satisfaction of a judgment may not be paid into court without the order of the court. Iowa Mutual Ins. Co. v. Burmester, 313 S.W.2d 897 (Tex. App.-Houston 1958); Texas & P.R. Co. v. Walker, 57 S.W. 568 (Tex. 1900).” (A.G. Opinion JM-1162).

CHILD LD S SUPPORT F T FUNDS-NOT J T JUST F T FOR K KIDS

Few child support cases are handled locally. Clerks may use one of two systems for processing payments: (1) Payment is received by the clerk, made payable to the recipient of the child support, and the clerk delivers to the recipient. (2) Payment is made to the clerk, then deposited into his/her special account. The clerk will then write a check from that account in the amount to be paid to the recipient. Fees may not be taken from the payment. Using either system, the clerk must be able to prove accountability for the receipt and timely disbursement to the receiving party. (I prefer having the check made payable to the recipient of the child support and mailing the payment. It is not feasible for my office to hand checks out in person as I do not have enough staff or time. Further, I am not paying for the cost of the checks.)

TH THE N NAME ME I IS B BOND

CASH

SH B BON OND

Ca Cash Bo Bonds in Ci Civil Ca Cases: : These include bonds required in civil cases such as those requiring specific performance, injunctions, sequestrations, temporary restraining orders and others. A. A.G. Op Opinion JM JM-116 1162: “....supercedeas deposits are paid to suspend the execution of a judgment pending appeal, which is also a legal proceeding and thus within chapter 117 of the Local Government Code. Definition of super erced edea eas: Latin for “you shall desist” an order (writ) by an appeals court commanding a lower court not to enforce or proceed with a judgment or sentence pending the decision on the appeal or until further order of the appeals court. (A writ that suspends the authority of a trial court to issue an execution on a judgment that has been appealed. It is a process designed to stop

SLIDE 23

11 enforcement of a trial court judgment brought up for review. The term is

ften used interchangeably with a stay of proceeding.)

Cash ba bail bo bonds ds: A.G. Opinion C-740 (1966) states, in part: “The sheriff or

ther peace officer accepting the cash bond should simply receipt the bond to

the defendant and then turn the money over to the clerk of the court or the justice of the peace, whichever is the appropriate officer. …The court has no authority to designate the sheriff to be the custodian of the funds.” Further, A.G. Opinion H-183 (1973) supports the above A.G. Opinion as follows: “a peace officer receiving a cash bail bond should deliver it to the custodian of funds of the appropriate court.” JC-195 (2000) states the sheriff is the holder of the cash bail bond until a case if filed. Until that time, the sheriff may retain bonds and deposit the cash into a separate bank account in the county’s depository bank (not necessarily the trust account). The sheriff may choose to deposit the bond in an interest-bearing account. If so, the sheriff must allocate the interest to each bond separately so that when the sheriff returns the bond to the defendant or transfers it to the clerk, he or she also pays out that bond’s share of interest earned. Popul ulation o

f 1

190 90,000 00 o

r mo

more: e: “A sheriff’s authority to maintain the separate interest bearing account may be limited by the county auditor, who “may adopt and enforce regulations…that the auditor considers necessary for the speedy and proper collecting, checking, and accounting for the revenues and

ther funds and fees that belong to the county or to a person…for whose use
r benefit the (county or precinct) officer holds or has received funds.” LGC

Ann., Sec 112.002(b).” (A.G. Opinion – JC0195; A.G. Opinion DM-282 (1994) at 405; JM-1162 (1990) at 3 and H-183 (1973) at 9.) When the prosecutor files a case, the sheriff should deliver cash bail bonds to the clerk as soon as reasonably possible.

YOU D DON’T T WANT ME T ME TO TO B BREAK TH THE LA LAW, D DO YOU?

Retu turn rnin ing a a c cash b bail il b bond: Any cash funds deposited under Article 1.02 of the Code of Criminal Procedure shall be refunded to the def defen endant if and when the defendant c complies w with th th the c condit itio ions o

f h

his b bond, and upon order der

f t

the c e cour urt. Returning the cash bail bond to the defendant when he/she is not the person initially providing the cash may not seem to be fair and equitable under certain circumstances, but, the clerk has no option but to

SLIDE 24

12 return the cash to the defendant. This statute has obviously not been written to make clerks popular!

FEES EES P PLEA EASE

A county or district clerk is authorized to withhold an administrative fee from the return of funds deposited with the clerk as a cash bail bond, as per Article 17.02, Code of Crim. Proc. This is confirmed by A.G. Opinion JC 0163 and Opinion GA-436 (2006).

ES ESCHEA HEATING IS N NOT T CHEATI TING

Es Esch cheat definition: The vesting of title to property in the state in an escheat proceeding under Chapter 71, TX Property Code. The clerk is required to submit unclaimed property and funds over the amount of $100. to the state comptroller. Funds held by the clerk under $100. shall be remitted to the county treasurer to be held until claimed by the

wner.

Registry funds, except cash bail bonds, that are presumed abandoned under Chapters 72, 73, or 75 of the Property Code, shall be reported and delivered by the clerk to the comptroller without further action of the court. If an individual dies intestate (without a valid will) and without heirs, the real and personal property of that individual is subject to escheat or transfer to the state. There is no waiting period. As soon as the court renders its judgment for the state finding that an intestate died without heirs, the property escheats to the state and title to the property is considered to pass to the state on the date of death of the owner as established by the escheat proceeding, and the state may begin proceedings to acquire the property. (TX Prop. Code, Sec. 71.107) Personal property is presumed abandoned if, for longer than three years:

1. the existence and location of the owner of the property is unknown to the

holder of the property, and

2. according to the knowledge and records of the holder of the property, a

claim to the property has not been asserted or an act of ownership of the property has not been exercised. (Property Code, Sec. 72.101)

SLIDE 25

13 Every effort should be made by the clerk to notify the owner of any funds. A record should be kept of the last known address even though mail may have been returned. The deadline for filing the unclaimed property report of dormant funds subject to escheat is November 1, of each year. Unclaimed property may not be remitted to the state comptroller until it has reached the required abandonment period as of June 30. The following procedures are suggested:

1. June 30th of each year, the clerk should review all registry funds and

identify those accounts that meet the criteria for escheat (three year dormancy period)

2. Notify owners of the property of the existence of the funds and keep

all documentation of your attempts to notify, including mail returned as undeliverable.

3. On or before November 1, complete the required forms and mail with

your remittance to the state comptroller.

“EXCESS F SS FUNDS”…WHO H O HAS E AS EXCESS AN SS ANYTHING?

The sale of property for delinquent taxes may generate funds over and above the amount of the judgment against the property. Known as excess funds, this amount must be turned over to the clerk of the court issuing the order of sale (TRCP, Rule 712) for safe keeping for a period of seven years after the date of the sale of same. An order entered by the court takes precedence over this requirement. If no claimant establishes entitlement to the proceeds within seven years, the clerk shall distribute the excess proceeds to each taxing unit participating in the sale in an amount equal to its proportion of taxes, penalties, and interest in relationship to the total amount of taxes, penalties, and interest due all participants in the sale. The clerk shall note on the execution docket in each case the amount of the excess proceeds, the date they were received, and the date they were transmitted to the taxing entities participating in the sale. (Tax Code, Article 34.03.

THE D HE DIFFERENC ERENCE I E IN P N PRO ROBATE

Dormancy period for registry funds begins on the later of: (1) the date of entry of the final judgment or order of dismissal in the action in which the funds were deposited;

SLIDE 26

14 (2) the 18th birthday of the minor for whom the funds were deposited;

r

(3) a reasonable date established by rule by the comptroller to promote the public interest in disposing of unclaimed funds. Within six months after the settlement of the final account of an executor or administrator is approved by order of the court (or order of the court approving the report of commissioners of partition), all heirs or persons entitled to a portion of an estate, must demand his/her portion of the estate. If demand has not been made, the probate court must by written order require the executor or administrator to pay that portion that is in money to the comptroller (Probate Code, Sec 427). The court must also order the executor or administrator to sell, on the terms the court thinks best, the portion of the estate being real property. When the proceeds of the sale are collected, the court must order them to be paid to the comptroller. The executor or administrator is allowed to collect reasonable compensation for his or her services. This does not apply to a resident minor without a guardian. The exception of cash bail bonds was made due to conflict with Code of Criminal Procedure Art. 17.02, which requires a court order for disbursement.

POPUL ULATION UN N UNDER 1 ER 190,000 v

vs. OVER 1

ER 190,000

Coun unties es un unde der 19 190, 0,000 000: A distr tric ict, coun unty, or precinct officer shall keep, a statement of, in part, trust fund deposits in the registry of a court. The county auditor or, if the county does not have a county auditor, the commissioners court shall annually examine the records and accounts of each

fficer and report the finds of the examination to the next grand jury or

district court. (LGC, Sec 114.041) Cou

unties

es o

ver 1

190, 90,00 000: 0: The county auditor may audit registry funds. Opinion H-1185 reflects “all money held by a county officer in an official capacity, whether or not such money belongs to the county, is subject to audit by the county auditor... The county is to adopt and enforce rules and regulations for the proper collecting, checking and accounting of county funds and funds collected for the use and benefit of a person (LGC, Sec. 112.002).

SLIDE 27

15 In addition to requirements for check-writing and reporting, this may include banking requirements. AG Opinion JM 1162 states, in part, “Conceivably, the county auditor could require that trust funds be placed in separate accounts “for the speedy and proper collecting, checking, and accounting’ of the funds…we believe that the clerk of the court has no duty to deposit such funds in separate accounts or in interest bearing accounts, except as such duty may be imposed by the court or other authority.” Clerks in counties over 190,000 must establish a check writing procedure, which may include counter-signature by the county auditor. Further, the clerk may be required to furnish monthly reports, annual reports or other reports regarding any money received or disbursed and “all money remaining

n hand at the time of the report.” The county auditor shall prescribe the

form and frequency of the report (LGC, Sec 114.043 and Sec. 117.058(b).

SLIDE 28

REGISTRY FORMS

SLIDE 29

--------District

Clerk

______

county

NOTICE OF EXCESS FUNDS

(Section 34.03, Subsection (a), Tax Code) revised 6-26-03

RE: Cause No., ___

SlYLED: _________

vs.

___________

_

This notice is to inform you that excess proceeds were deposited with the Clerk of the District Courts of ___ _ County, Texas, In the amount of$

n

in connection with the above numbered and styled cause. You are further advised to review the following text of Section 34.03 and 34.04, Tax Code regardJng your rights with respect to the excess proceeds.

'

Section 34.03, Tax Code· Disposition of Excess Proceeds (a) The clerk of the court shall: (1) If the amount of excess proceeds is .more tnan $25, before the 31st day after the date the excess

proceeds are recelved by the clerk, send by certified mail, return receipt requested, .a written notice to the former owner of the property, at the former owner's last known address according to the records of the court or any other soun;e reasonably available to the court, that (A) states the amount of the excess proceeds;

(BJ Informs the former owner of

that ow_ner's rights to claim the excess proceeds under Section 34.04; and

(C) indudes a copy or the complete text of

this section and Section 34.04; and

(2) regardless of

the amount, keep the excess proceeds paid into court as provided by Section 34.02(c) for a period of two yeaJS after the date of ttie sale unless otheTWise ordered by th'e court. (b) If no claimant establishes entitlement to the proceeds within the period provided by Subseetion (a), the clerk shall distribute the excess proceeds to each taxing unit participating in the sale in ,!In amount equal to the proportion its taxes, penalties, and interests bear to the total amount of taxes, penalties, and interest due all participants in the sale. (c) The clerk shall not on the execution docket In each case the amount of the excess proceeds, the date they were received, and the date they were transmitted to the taxing units participa_ting in the sale. Section 34.04, Tax Code • Claims for Excess Proceeds (a) A pelSOn, including a taxing unit, may file a petition In the court that ordered seizure or the sale settinil forth a claim to the excess proceeds. The petition must be filed before the second anniversai,y of the date of the sale

f

the property. The petition Is not required to be filed as an original suit separate from the underlying suit for . . seizur:e of the property or foreclosure of

a tax lien on the property, butmay be filed under the cause number of

· the underlying suit. (b) A copy of the petition shall be served, in the manner prescribed by Rule 21a, Texas Rules of Civil Procedure, as amended, or that rule's successor, on all parties to the underlying action not later than the 20th day before the date set for a hearing on the petition. · (c) At the hearing the court shall order that the proceeds be paid· according to the following priorities to each party that establishes its claim to the proceeds: ·

(1) to the tax sale purchaser If the tax sale has been adjudged to be void and the purchaser has prevailed in an adtion against the taxing units under Section 34.07 (d) by final judgment; (2) to a taxing unit for any taxes, penalties. or

interest that have become due or delinquent on the subject · property subsequent to the date of the judgment or that were omitted from the judgment by accident or mistake; (3) to any other lien holder, Consensual or

therwise, fOr the amount due under a lien, in accordance with

the priorities established by applicable law; .

(4) to a taxing unit for any unpaid taxes, penalties, interest or other amounts adjudged due under the

judgment that were not satisfied from the proceeds from the tax sale; and

(5) ID each former owner of the property as the Interest of each may appear. provided that the former

wner:

(A) was a defendant in the judgment; (B) is related· within the third degree of consanguinity or affinity to a former owner that was a defendant in the judgment; or

.

(C) acquired by will or intestate succession the interest in the prope~

f a former owner that was a

defendant In the judgment.

24

SLIDE 30

'"

(c-1 J Except as provided by Subsections (cJ(5J(BJand (CJ, a former owner of the properly that acquired an Interest in the p~perly

after the date of the judgment may not establish a claim to the proceeds. For purposes of this subsection, a fo11T1er owner of the properly is considered to have acquired an Interest In the properly after the date of

the judgment If the deed by which the former owner acquired the interest was recorded in the real properly

, records of

the county in which the properly Is located after the date of the judgment

(d) Interest and costs may not be allowed under this section. (eJ An order under this section directing that all or

part of

the excess proceeds be paid to a party is appealable.

(f) A

person may not take an assignment or other transfer of an owner's ~aim

to excess proceeds unless:

(1J

the assignment or transfer is taken on or after the 3ff' day after the date the excess proceeds are deposited in the registry of the court;

(2J

the assignment or transfer is fn writing and signed by the as5ignor or transferor; (3)' the assignment or transfer is not the result of an in-person or telephone solicitation;

(4J

the assignee or transferee pays the assignor or transferor on the date' of the assignment or transfer an amount equal to at least BO percent of the amount of the assignor's or transferor's claim to the excess proceeds: and (5J the assignment or transfer document contains a sworn statement by the assi9nor or transferor affirming: (A) that the assignment or transfer was given voluntarily;

(BJ the date on which the assignment or transfer was made and that the date was not earlier that

the 3ff' day after the date the excess proceeds were deposited in the registry of the court;

(CJ that the assignor or transferor has received the notice from the clerk required by section

34.03; .

(DJ the nature and specific amount of

consideration given for the assignment or transfer, (E) the circumstances under which the excess proceeds are in the registry of the court;

(FJ the amo1,mt of

the claim to excess proceeds in the registry of the court; (GJ that 'the assignor or transferor has made no other assignments or transfeTS of

the assignor's

r

transferor's claim to the· excess proceeds;

(HJ that the assignor or

transferor knows that the assignor or transferor may retain counsel,: and

(I) that the consideration was paid in fUll on the date of the assignment or transfer and that the consideration paid was an amount equal to at least BO percent of the amount of the assignor's

r transferor's claim to the excess proceeds.

(gJ An assignee or

transferee who obtains excess proceeds without complying with Subsection (f) is liable to

the a,ssignor for the amount of excess proceeds obtained plus attorney's fees anq expenses • An assignee or transferee who attempts to obtain excess proceeds without complying with Subsection (f) is liable to the assignor or transferor for attorney's fee and expenses.

(hJ An assignee or transferee who files a petition setting forth a claim to excess proceeds must attach a copy of .

the assignment or transfer document and produce the original of the assignment or transfer document in court at the hean'ng on the petition. If the original assignment or·transfer document is lost. the assignee or transferee must

btain the presence of

the assignor or transferor to testify at the heanng In addition, the assignee or transferee must produce at the heai1ng the original of any evidence verifying the payment of the consideration given for the assignment or transfer If the original of any evidence of the payment is lost or if the payment was in cash, the assignee or transfe;ee must obtain the presence of the assign.or or transferor to testify at the hearing.

(iJ A fee charged by an attorney to obtain excess proceeds for an owner may not be greater that 25 percent of

the amount obtained or $1,000, whichever Is less ·A person. who is not an attorney may not charge a fee to obtain excess proceeds for an owner.

· . ·

(j) The amount of

the excess proceeds the court may order be

paid to an assignee or transferee may not exceed 125 percent of the amount the assignee or transferee paid the assignor or transferor on the date of

the assignment

r

transfer. · This office cannot provide you fonns or legal advice to· claim the excess proceeds

........................................................

**** ....................................

*********

CERTIFICATE OF SERVICE

1,

District.

Cieri<, County, Texas hereby certify that a true and correct copy of the foregoing/attached Notice of Excess Funds in the above styled and numbered cause was sent by certified mail to

________

n the _day
f

20_.

Certified Mall Receipt# _________ _ Attach Receipts:

25

________

__,District Clerk

______

County, Texas By

_____________

Deputy

SLIDE 31

'-

CAUSE NO. --

vs.

IN THE DISTRICT COURT

____

COUNTY, TEXAS

__

JUDICIAL DISTRICT

CLERK'S CERTIFICATE

I, --------J

do hereby certify that I am the duly qualifi~d

elected District Clerk of'

~ounty,

Texas. In

my capacity as District Clerk I am the legal custodian of all of the papers filed and funds deposited in any cause pending in any District Court of County, Texas. I further Certify that I have researched the file and paperwork regarding excess fees filed in this cause and have detennined the address of the former owner of the property made the basis of this suit is not available in the file to send notice pursuant to §34.03, Tax Code. Given under my hand and seal of

ffice at ____

Texas this day of

____

County District Clerk

By

"'

Deputy Clerk

26

SLIDE 32

CLERK'S MOTION TO DISBURSE EXCESS PROCEEDS -

TAX CODE-34.03 (a) & (b)

Plaintiff

vs.

Defendant CAUSE NO. ___

~-

§ §

IN THE DISTRICT COURT

____

JUDICIAL DISTRICT

_____

COUNTY, TEXAS On a tax sale was held in County and Excess Proceeds in the amount of$ was deposited into the Registry of the Court in a non-interest bearing account on

n the following property:

TRACT#1- _____________________________________________________

___

Notice of Excess Proceeds was mailed by certified mail, return receipt requested on

-------to

the former owner of the property at the last known address according to the records of the court, or any other source reasonably available to· the court informing the amount of the proceeds and their rights to claim the Excess Proceeds under Section 34.04. On notice to dismiss for want of prosecution mailed to attorney of record with no answer filed on an Order for Dismiss for want of prosecution was signed. In accordance with Sec. 34.03, Tax Code, and the time being at least two (2) years from

·•

,

the date notice was given by the District Clerk of Bandera County, Texas and no claimant established en~itlement to the proceeds within the time period of 2 years, moves th·e Court to allow the clerk to distribute the Excess Proceeds to any outstanding_ court cost or fees and the remaining proceeds, after costs are paid, to each taxing unit participating in the sale in an amount equal to the portion of its taxes, penalties, and interests bear to the total amount of taxes, penalties, and interest due all participants in the sale; and to allow the clerk retain a fee to compensate the county for accounting and administrative expenses incur~d in handling the registry fund in an amount equal to 5% of the withdrawal, not to exceed $50.00, pursuant to Chapter 117.055, Texas Local Government Code.

Date:-------

Cc: Plaintiff Attorney Defendant(s)

I 27

g

Respectfully Submitted District Clerk

_______

County, Texas

SLIDE 33

Plaintiff·

vs.

Defendant

CAUSE NO._~-

§ § § § § §

ORDER

IN THE DISTRICT COURT

___

.JUDICIAL DISTRICT

____

COUNTY, TEXAS_ On this the __ day of ------ 20_, the Court having considered the motion to disburse funds in the Registry of the Court, and the Court having heretofore granted said motion; It is therefore ORDERED, ADJUDGED AND DECREED that the District clerk of

----- Cou_nty ,shall distribute the Excess Proceeds to any unpaid court

costs or fees and the remaining balance to each taxing unit participating in the sale in an amount equal to the portion of its taxes, penalties, and interests bear to the total amount of taxes, penalties, and interest due all participants in the sale; and It is FURTHER ORDERED the clerk retain a fee to compensate the county for accounting and administrative expenses incurred in handling the registry fund in an amount' equal to 5% of the withdrawal, not to exceed $50.00, pursuant to Chapter 117.055, Texas Local Government Code. SIGNED AND ENTERD ON THIS THE ___ DAY OF _____ , 20_.

28

q

JUDGE PRESIDING

_____

COUNTY, TEXAS

SLIDE 34

NO. § IN THE DISTRICT COURT § §

vs.

§ COUNTY, TEXAS § § §

__

JUDICIAL DISTRICT RELEASE OF JUDGMENT

(SBCIION 31.008(a), CIVIL PRACTICE AND REMEDIES CODE)

WHEREAS, heretofore on the __ day of ______

_,, 19__,

judgment was entered in the above entitled and numbered cause in favor of

__________

and

against

for the sum of$ . interest and costs, and

· WHEREAS, the judgment debtor has filed with this office an affidavit in accordance with

.

. .

Sec. 31.008, Civil Practice and Remedies Code, and

WHEREAS the judgment debtor ___ ...._ ______

has paid the sum of$

into the registry of the court in satisfaction of said judgment, receipt of which is hereby acknowledged; NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS; TIIAT, ~ ------- District Clerk for~ County, Texas, on behalf of the judgment creditor do hereby

rel~e,

acquit and forever discharge the said judgment debtor~

__

___,__ __

_ . Given under my hand and seal of said Court at office in the City of~·

___

,, this the

_day

f

19_.

District Clerk, .__County

29

\l..

\

SLIDE 35 I

,

----COUNTY

DISTRICT CLERK

Memo

To: The Honorable -------

_____

County Judge and Commissioners From: ·District Clerk

Date:.--------

RE: District Clerk Registry Account To clarify any is~ues regarding Sec.117.021, Local Government Code, when a contract for the registry depository, this is to inform you that the District Clerk's registry fund deposi~ry

a~count

should not earn interest. The .average balance of this account is $ ------ I am requesting that our court costs account again earn interest and our criminal accounts. Four your information in c!_etennining th~ collateral amount necessary to secure the District Clerk's accounts, fhe average daily balance of all accounts combined is $

______

_

Cc: County Treasurer County Auditor

\6

SLIDE 36

vs.

CAUSE NO. __ _

§ IN THE DISTlp:CT COURT § §

___

JUDICIAL DISTRICT

~-COUNTY,

TEXAS

REQUEST TO TRANSFER REGISTRY FUNDS Now comes the District Clerk of ____

reques~ing

to transfer Court ordered registry funds deposited in the a dMsion of

\ ------- '

to another FDIC financial institution located within _____

County. The

purpose of the transfer is---------- Respectfully Submitted,

______

_.... ___ Clerk

_______

county, Texas

ORDER TO TRANSFER FUNDS It is ORDERED, that the District cl_erk of _____ County shall transfer any and all registry funds· invested at the in Bandera County, Texas to another

I

FDIC approved financial institution located within· Bandera County, under the same provisions as the original Court Order, placing· the funds in the Registry of the Court securing the best possible interest return for the account. SIGNED AND ENTERED on this the __ day of ______

20_.

Presiding Judge.

_________

Counfy, Texas

SLIDE 37

(

Information Required for Opening an Interest-Bearing Account

NOTE: The money deposited with our office cannot be invested into an interest-bearing account and will not draw any interest without this information.

Name of Mip.or or Deceased:

HDeceased Tai ID Number for Estate:

(You cannot use the Deceased's Social Security Number and you cannot use the Social Security Number of the Administrator/Executor. You must get

a Tax ID number for the Estate. This is obtained from the IRS. Banlcs will not allow you to open an account in the name of an Estate without a Tax ID number.)

HMinor

Social Security Number of Minor: Date of Birth for Minor: 1099-INT tax statements are issued yearly from the bank so that you can report your · interest earned to the IRS. Please state the name, address and phone number for the person that we need to forward this statement to:

ADDRESS

CITY. STA'IE.ZIP

PHONE NUMBER

32

,.

SLIDE 38

CAUSE NO.:

..,.-------DISTRICT

CLERK REGIS'fl!.:V FUND DEPOSIT INFORMATION SHEET

~-

STYLE OF CAUSE: ~- MINORS'S NAME: ~-~-~-'"-~- MINOR'S DATE OF BIRTII: ~-~-~ MINOR'S SOCIAL SECURITY NUMBER: ~-~- NAME, ADDRESS AND PHONE NUMBER OF PARENT/NEXT FRIEND:

N~,

ADDRESS AND PHONE NUMBER OF GUARDIAN AD LITEM: NAME, ADDRESS AND PHONE NUMBER OF PARENT/NEXT FRIEND: NAME, ADDRESS AND PHONE NUMBER OF PARENT/NEXT FRIEND'S ATT0RNEY: FORM 1099-INT WILL BE SENT TO TIIB ADDRESS OF THE PARENT/NEXT FRIEND EVERY YEAR. IT IS THE RESPONSIBILITY OF THE AITORNEY OF RECORD TO NOTIFY THE FANNIN COUNTY DISTRICT CLERK'S OFFICE OF ANY ADDRESS CHANGES.

33

SLIDE 39

vs.

CAUSE NO. ----- ][ IN THE DISTRICT COURT ][ ][

__

JUDICIAL DISTRICT

______

COUNTY, TEXAS ORDER ALLOWING CLERK TO RETAIN A FEE OF OFFICE - lGC 111.054. 055

On this the __

day of ______

20_,

the Court having considered the application to withdraw funds in the Registry of the Court, and t_he Court having heretofore granted said motion; It is therefore ORDERED, ADJUDGED AND DECREED that the District clerk of

------County

shall, prior to the disbursement of funds, be entitled to: [ ] a fee of office for maintaining a special court registry account in an amount equal to 10% of the interest earned on the account, pursuant to Chapter 117.054 Texas Local Government Code. [ ] a fee comp~nsate the county for accounting and administrative expenses incurred

in handling the registry fund in an amount equal to 5% of the·withdrawal, not to exceed $50.00, pursuant to Chapter 117.055, Tex~s Local Government code. SIGNED AND ENTERED on this 'the __

day of ______

20_.

Judge __ District Court

_______

County,, Texas

34

SLIDE 40

Cause No. -----

vs.

§ § § § § § § § § IN THE DISTRICT COURT OF

~-COUNTY,

TEXAS

___

JUDICIAL DISTRICT MOTION TO TERMINATE TRUST AND

RELEASE OF FUNDS Comes now Plaintiff herein and requests the funds being held in trust for the benefit of

--------------be

released and the trust created by this Court on

------- be terminated for the reason that the minor for whom the trust is being

held attained the age of 18 on as shown by the attaChed copy/copies of:

D

Birth Certificate

D

Driver's License

D · Social Security Card

Q

DPS Identification Card

D

Other:.

_________

_

Respectfully submitted this ___ day of ________ _. 20_.

(Name)

(address and phone number)

35

SLIDE 41

vs.

Cause No. ----- § § § - § § § § § § IN THE DISTRICT COURT OF

____

COUNTY, TEXAS

___

JUDICIAL DISTRICT

t

ORDER TERMINATING TRUST AND RELEASING FUNDS On this day was heard the Motion to Terminate Trust and Release Funds and it

1appearing to

the Court that the minor has reached 18 years of age,

IT IS THEREFORE ORDERED AND 'DECREED, that the District Clerk of

_____

County, Texas release the balance

f funds
n

deposit with the

------- in ___

_, _____

County, Texas, constituting the trust created by this Court for the benefit of

____________________

an_d;

IT IS THEREFORE ORDERED the District Clerk of County shall, prior to the disbursement of the funds, be entitled to a fee of office for maintaining a special court registry

.

account in an amount equal to 10% of the interest earned o:r;i the account, pmsuant to Chapter 117.054, Texas Government Code ail.cl; IT IS FURTHER ORDERED that said trust is terminated and the District Clerk is released as trustee.

SIGNED AND ENTERED this the_

day· of ______

20_. Judge Presiding

36

SLIDE 42

THE STATE OF TEXAS

vs

§ § §

IN THE DISTRICT COURT OF COUNTY, TEXAS

___

JUDICIAL DISTRICT

APPLICATION TO RELEASE FUNDS DEPOSITED FOR CASH BAIL BOND

TO THE HONORABLE JUDGE OF SAID COURT:

NOW COMES, __

.:.._. _________ __., Depositor, who says as follows:

§ I am the person who deposited the cash funds in this case, to_be_ us~d

as a Cash Bail Bond as sho~n by the receipt records of the District Cler~

f.

_ · County, Texas. § I am entitled to receive the funds so deposited because on the day of · , 20 , the Judge of the above District Court

=:-~-:-:-~-.,.,.-,.:entered

a Final Judgment in the above entitled and numbered case.

I'

§

No Motion for New Trial or Notice of Appeal has been filed and all matters have been concluded in this criminal case. THEREFORE, the Depositor requests this Court to order the District Clerk of County, Texas, to release the funds previously deposited as a Cash Bail Bond in this case to the Depositor.

Respectfully Submitted,

Depositor Telephone Number

ORDER

On_ thl~

q~y,

the Court considered the above Application for release of funds held by the District Clerk

f.

County, Texas, and finds that such Application should be GRAN.TED. Additionally, pursuant to §117.055, T~,q;is

Lo~!

Gov't Code, 5% of the. C~h Ball Bond, not to exceed $50.00, shall be retained by the. . County di~trict Clerk as an Administrative Fee. IT IS THEREFORE ORDERED, that ttie District Clerk of __ County, Texas, confirm the identity of the Depositor of the cash fUnds in the above case and, upon confin'ning the identity of such Depositor, release the funds previously deposited as a Cash Ball Bond to the Depositor. Signed thi~ the day of

20_.

JUDGE PRESIDING

37

,,.

...

··

SLIDE 43

OIU>ER TO REFUND C.ISJI BOND· CCP 17.02

THE STATE OF TEXAS

vs.

CAUSE NO.~ IN THE ___ DISTRICT COURT OF

CO. TEXllS

On this the __ day of_.

______

, 20_ it appea:ring to the court that a cash bond in the amount of $

____

having been previously deposited with the Clerk of this court to assure the appea:rance of the defendant before this Court in

. .

.

The above numbered cause on the Court:s Cximina~ Docket, and it further appearing to the Court that the liability of the defendant to appea:r in this cause has been fully discharged and that the liability of his sureties has temiinated.

rr IS DIRECTED that the Clerk of

the Court refund the said cash.bond in the Amount of$ _____ to __________ Defendant in said cause, less however a fee of 5% of the bond, not to exceed $ 50.00 to be retained by the clerk to compensat~ the county for administrative expenses [Ch 117.055 Tex Local Gov Code) PRESIDINq JUDGE, ___ District Court

_________

County, Texas Received this the __

day of _____ 20

__

by _______

_

Defendant

38

SLIDE 44

Application for Release of Cash Bond

I, ---------•request

the comttD release the cash

.Bondin the

amount of"-~-

posted in Case Number

_______

, Styled: The $tate of'l'elras Vs. ____

___,_ __

::....-._. 'Ihe said bond has never. been forleit.ed and said

Defendant·~

satisfied all condition& of the bond.

l undenJtand in accordance with

Art 17.02 of

the Code of

Criminal Procedure that

the refund· must

be

.uw.de t.o the defendant. I release the Cleric fro~ ~

liabilify and

accountabili.'fN hereof.

Art. 17. 02--A "ball. bond'

is a

written undertaking entered into 'by 'thiJ defendant and his sureties for the appemrm.ce of

the principal thereitr, before same oaun: or maglsrrom to answer a· crimitloz

·

aa:usation; proW1al, hcJtJaJet; that the dsfendarrtipm ~of such bail bond may~

uilh the cvsfDdian of jimds of

the OOUTt in. which the prmeadion. i9 pending rurrent

't11t1rfP1J of

the Ohited Sfl1tes in the amount of

the bond in lieu ofhcwing sureties si{Jl1ing t1.te same. AtJY w.shfonds deposifsd Zlnlie this Mide shall be reoejpted for by the ojfv:er remiuing the same and shall be trftm4sdto t~

defendant if and when

the defendant oomplies uiilh the amdilions of his bol1£4 and upon,orderofths court..

·

Date Defendants Signatuare Address

'

Phone Number-··

Applicants Signature

(If different from def~ant)

\

*Note- A. copy of drivers Iicens~ must accompany this application. Your refund will be mailed to )Wath:r ajudgexeview}'Ourapplicalionand mtms anOitler·~wingthe:funds to be released.

39

SLIDE 45

The State of Texas Vs.

\

CAUSE NO.

* *

Jn The Count¥ Co'lUt

Of

__

a County, 're:xas ORDER REG4RDING CASH Bom. On the

de¥ of

20_this Court entered a judgment in the abo'Ve sf;yled and numbered case. The Court

finde the Cash Bond

was posted in said case by and that said

bond has never been forfeited. Said Defendant has satisfied all conditions of

~aid

bond>

therefore the bond pursuant to. A\1. 17.02 of the Code of Criminal Procedure is hereby

releaS°ed to the defendant.

~-

Signed this day _______ _

..__ __

~CJounti}'

Judge

40

SLIDE 46

ASSIGNMENT OF CASH.·BOND SECURITIES

In accordance with Article 17.02 of the Texas Code of Criminal Procedure, the Defend~t is $e only person entitled to receive~ refund of

cash bond securities upon :final disposition of

the cause of action. THE STATE OF TEXAS § § § KNOWALLMEN BY THESE PRESENTS THAT I, _____ hereby waive my entitlemem as the recipient of cash bond securities

in cause number

_____

and furthermore,, I hereby convey the cash bond securities in .the sum of $

__________

...... Dollaz:s, receipt number _____

n

deposit with the District Clerk of County, Texas, and. freely and voluntarily assign as the designated recipient of said ft:,lnds. Defendant's Signature Subscribed and sworn to before me this ____ day of ______ , 20_. Notary Public In a·nd For The STATE OF TEXAS EXPIRATION DATE: REFUNDS of cash bond securities are obtained from the County District Clerk's Office located in the County Courthouse,-~- They require the following documents in order to issue a refund: (1) An order refunding the cash bond (2) Proof of Jdentify (3) This Official Assignment of Cash Bond Securities

Original to: District C!elk Copy to:

Defundant. assignor

Person pa'/i~

the bond-Assignee 41

SLIDE 47

Texas Rules of Court

RULE 14c. DEPOSIT IN LIEU OF SURETY BOND

'

Wherever these rules provide for the filing of a surety bond, the party may in lieu of filing the bond deposit cash or other negotiable obligation of the government of the United States of America or any ~gency thereof, or with leave of court, deposit a negotiable obligation of any bank or savings and loan association chartered by the government of the United Sta~s

f

America or any state thereof that is insured by the go~erm:nent

f'the United States of

America or any agency thereof, in the amounffixed for the surety bond, conditioned in the same ma!'ner as would be a surety bond for the protection of other parties. Any i!lterest thereon shall constitute a part of the '<:feposit.

42

SLIDE 48

vs.

CAUSE NO.-----

IN THE DISTRICT COURT

D

___

JUDICIAL DISTRICT

______

COUNTY, TEXAS

CERTIFICATE of CASH BOND t me l4c)

KNOW ALL MEN BYT.DSE P.RESENTS, THAT I,------------ having this day deposited into the registry of the Court, a cash bond in lieu of sureties in the amount of$ ______ do hereby aclmowledge myselYourselves bound to pay

____________________

the sum of$.

______

_, conditioned in the same manner as would be a surety bond for the protection of another party, and that I/we will pay all sums of money and costs that may be'adjudged against us

WITNESS· our/my hand this the __

day of _____ 20 _. Principal

APPROVED this the_

day of 20 _. Clerk, of the District Court

~-~County,

Texas

43

SLIDE 49

Texas Rules of Court RULE 684. APPLICANT'S BOND

In the order granting any temporary restraining order or

temporary injunction, the court shall fix the amount of security to be.given by the applicant. Before the issuance of the temporary restraining

rder or temporary injunction the applicant shall execute ~4

file with the clerk a bond. to the adverse party, with two or more good and sufficient sureties, to be approved by the clerk, in the sum fixed by the judge, conditioned that the applicant will abide the decision which may be made in the cause, and that he Will pay all sums of money and costs that may be adjudged against him if the restrainin$

rder or temporary injunction shall be dissolved in whole or in part.

Where the temporary restraining o!der or temporary injunction is against the State, a municipalitY, a State agency, or a subdivision of the State in its governmental capacizy, and is such that the State, ·municipality, Stat'e agency, or subdivision of the State in its governmental capacity, has no pecuniary interest in the suit and no monetary damages can be shown, the bond sh~l be allowed in the sum

. .

fixed by the judge, and the liability of the applicant shall be for its face amount if the restraining

rder or temporary injunction shall be ,dissolved in whole or in part. The discretion of

the trial court

,.

in fixing the amount of the bond shall be subject to review

.. Provided that under equitable

circumstances and for good cause shown by affidavit or otherwise the court rendering judgment on.

. .

, the bond may allow recovery for less than its full face amount, the action of

th~

court to be subject to review

..

44

SLIDE 50

CAUSE NO.------ IN THE DISTRICT COURT JUDICIAL DISTRICT

D

COUNTY, TEXAS

CASH BOND -TRO. TRC 684

KNOW ALL MEN BY THESE PRESENTS, THAT I,------------ having this day deposited in the registry of the District clerk, a cash bond in lieu of sureties in the amount of$ do hereby acknowledge ourselves bound tO pay _____ _ the sum of

Dollars, conditioned that _______________

will abide by the decisions which may be made in the above styled and numbered cause, and that we will pay all sums of money and costs and that may be adjudged against us if the Temporary Restraining Order issued in the aforesaid cause on the day of 20

__

~njoining

~-~-~

should be dissolved in whole or part. WITNESS my hand this the day of _________

20_.

Principal APPROVED this the day of ______ 20

__

. District Clerk, _______ County, Texas BY~-~·Deputy

45