REGISTRY OF THE COURT

Presented by: Lisa David, Williamson County District Clerk

Registry of the Court

Each District and County Clerk must maintain

a bank account to receive money ordered
tendered into the courts 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 courts 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.

Types of Registry Funds

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 3 days

5.

Cash bonds

6.

Cash bail bonds

7.

Funds in an eminent domain case and

8.

Any other funds tendered to the clerk for deposit

into the registry of the court.

Registry of the Court

REFERENCE THE FOLLOWING STATUTES FOR
ADDITIONAL INFO ON REGISTRY FUNDS:

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

CUSTODIANSHIP

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

MANAGEMENT OF REGISTRY FUNDS

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

The registry account

may earn interest.
or

Non-Interest
Bearing Account

The registry account may

not earn interest.

Interest
Bearing
Account

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.

A.

Make a written request to the commissioners court that

the contract include a provision that funds in a special
account in the clerks name earn interest.

B.

The application of a bank that seeks to become the

county depository must be accompanied by a certified or
cashiers check for an amount equal to onehalf 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 commissioners court requesting that the registry
account earn interest.

Interest
Bearing
Account

IF THE CLERK ELECTS TO HAVE THE REGISTRY

ACCOUNT EARN INTEREST . . . .

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

NonInterest
Bearing
Account

TO COMPENSATE THE COUNTY FOR THE

ACCOUNTING AND ADMINISTRATIVE EXPENSES
INCURRED IN HANDLING THE REGISTRY FUNDS
THAT HAVE NOT EARNED INTEREST

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

INVESTMENT OF FUNDS

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 noload 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

DISBURSEMENT OF REGISTRY 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

STRUCTURED SETTLEMENT PAYMENTS

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

The person obligated to fund a structured settlement shall

provide to the court:

1.

2.

A copy of the instrument that provides funding for

the structured settlement; or
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

ESCHEAT FUNDS

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 $100, 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

Each holder, who on June 30, holds proper subject to this

chapter shall file a report of the property on or before the
following November 1.
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 June 30th 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.
On or before November 1st, complete the required forms and
submit to comptroller.

EXCESS 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 courts registry.
The retention period for these funds is 2 years.

EXCESS FUNDS

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

CLAIMS FOR EXCESS PROCEEDS

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

owner 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.

PAYMENT OF UNCLAIMED JUDGMENT

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 creditors last known address

2.

Address appearing in the judgment creditors pleadings

or other court record, if different from the last known
address.

3.

Address of judgment debtors last attorney as shown on

the pleadings and

4.

The address of the judgment creditors 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.

TEXAS SENATE BILL 1589

TEXAS SENATE BILL 1589