Procedure for Distribution of Funds Deposited in Court
Funds deposited with the declaration of taking and any
funds thereafter deposited in court should be promptly distributed.
To this end, the U.S. Attorney should:|
- Obtain promptly and review all information available as to the
state of the title to the property and any liens, taxes, and
- Advise the defendants or their counsel by letter (see ENRD Resource Manual at 28) of the fact
that funds have been deposited in court, and offer all possible
assistance in obtaining the disbursement of such funds. Suggested
forms for use in processing such disbursements are set out in the
ENRD Manual at 32, 33, 41 and
42. By this procedure the landowner
makes written application through the U.S. Attorney, who makes an
appropriate motion to disburse, attaching the defendant's sworn
application. The court may enter its order either with or without
a formal hearing.
- If the former owner's title is clear and unencumbered all
of the funds deposited may be disbursed to him/her.
- If the title is encumbered, sufficient funds should be retained
in the registry of the court to pay all liens on the property and
to satisfy claims of any third persons whose interest is disclosed
by the title evidence.
- If additional funds are deposited pursuant to a deficiency
judgment, the defendants should be advised when the funds are
available for withdrawal.
- When funds cannot be disbursed because the owner cannot be
located, or for other reasons, an order should be sought
immediately requiring the clerk to disburse the undistributed
balance to the Treasury of the United States at the expiration of
the five-year period pursuant to 28 U.S.C. § 2042. One
certified and one uncertified copy of the order should be
transmitted to the Department, together with two copies of the
certificate of deposit showing the deposit in a federal depository.