STATUTORY INSTRUMENTS

S.I. No. 258 of 2005

District Court (Funds in Court) Rules, 2005

SI 258 of 2005

District Court (Funds in Court) Rules 2005

The District Court Rules Committee, in exercise of the powers conferred on them by section 91 of the Courts of Justice Act, 1924 , section 72 of the Courts of Justice Act, 1936 , section 17 of the Interpretation Act, 1937 [as applied by section 48 of the Courts (Supplemental Provisions) Act, 1961 ] and section 34 of the Courts (Supplemental Provisions) Act, 1961 , do hereby, with the concurrence of the Minister for Justice, Equality and Law Reform, make the following rules of court:-

1.         These rules may be cited as the District Court (Funds in Court) Rules 2005.

2.         These rules shall come into operation on the 3rd day of June 2005 and shall be read together with all other District Court Rules for the time being in force.

3.         The District Court Rules 1997 ( S.I. No.93 of 1997 ) is hereby amended:

(i)        by the substitution in Order 7, rule 5 thereof for sub rule (1) thereof of the following:

“5.(1) The Court may, subject to the provisions of Order 12A, direct that any sum of money or other personal property to which the minor may be declared entitled in such proceedings be secured or invested for the benefit of the minor in such manner as the Court may consider advisable. A copy of any order made under rule 4, 5 or 6 of this Order shall, where appropriate, be sent by the Clerk to the Accountant”.

(ii)        by the insertion immediately following Order 12 of the following:

“Order 12A

Funds in Court

I. Preliminary

1. In this Order:

“Accountant” means the Accountant referred to in section 16 of the Court Officers Act 1926 , or a deputy appointed by the Courts Service;

“Accountant’s Office” means the office referred to in section 15 of the Court Officers Act 1926 ;

“Chief Clerk in the Accountant’s Office” includes a deputy for such person appointed by the Courts Service;

“funds” means moneys, annuities, stocks, shares or other securities;

“Institution” means such company or institution, being the holder of a licence to carry on banking business within the State, as the Accountant may, in consultation with the President of the District Court, from time to time designate for the purpose of providing to the Accountant current account banking services in respect of moneys to be lodged in Court;

“President” means the President of the District Court.

II. Lodgment of Funds in Court

2. (1) The President may prescribe categories of proceedings, or of awards or lodgments made in proceedings, in respect of which funds to be paid into Court are to be lodged at the Accountant’s Office.

(2) Where the President has prescribed a category of proceedings, or of awards or lodgments made in proceedings, for the purposes of sub rule 1 hereof, moneys to be lodged in Court within that category shall be paid in at the Accountant’s Office or, where the Accountant directs, at the Institution, and the Accountant or the Institution, as the case may be, shall cause a receipt to be given to the person making the lodgment, and shall send notice of such receipt to the Clerk by post or in such other manner (including transmission electronically) as the Accountant may determine.

(3) The President may prescribe categories of proceedings, or of awards or lodgments made in proceedings, in respect of which funds already paid into Court are to be lodged at the Accountant’s Office.

(4) Where the President has prescribed a category of proceedings, or of awards or lodgments made in proceedings, for the purposes of sub rule 3 hereof, funds lodged in Court within that category shall be paid in by each Clerk at the Accountant’s Office or, where the Accountant directs, at the Institution, in accordance with a timetable fixed by the Accountant in consultation with each Clerk, and the Accountant or the Institution, as the case may be, shall cause a receipt to be given to each Clerk making the lodgment, and shall send notice of such receipt to each such Clerk by post or in such other manner (including transmission electronically) as the Accountant may determine.

(5) Where funds to be paid into Court are to be lodged at the Accountant’s Office, cheques for lodgment of moneys shall be made payable to the Accountant.

(6) The Accountant shall cause all moneys paid in at the Accountant’s Office pursuant to sub rules 1 or 3 hereof to be lodged with the Institution as soon as is practicable and the Institution shall cause a receipt to issue to the Accountant for every such lodgment.

(7) Where the President has prescribed a category of proceedings, or of awards or lodgments made in proceedings, for the purposes of sub rule 1 hereof, securities to be transferred into Court within that category shall be transferred to the account of the Accountant in the books of the Institution, or any company, or other body corporate in whose books such securities are registered.

(8) Where the President has prescribed a category of proceedings, or of awards or lodgments made in proceedings, for the purposes of sub rule 3 hereof, securities to be transferred into Court within that category shall be transferred to the account of the Accountant in the books of the Institution, or any company, or other body corporate in whose books such securities are registered.

(9) The forms for the time being prescribed by the Rules of the Superior Courts for use in the Accountant’s Office shall, where applicable or appropriate and with such variations or modifications as may be necessary, be used in respect of any category which has been prescribed by the President for the purposes of sub rules 1 or 3 hereof.

(10) Where funds to be paid into Court are to be lodged at the Accountant’s Office, a direction for lodgment pursuant to an order shall, save where a direction for lodgment of funds is transmitted electronically pursuant to sub rule 12 hereof, be issued by the Accountant upon receipt from the Clerk of a certified copy of the order, or, where the Accountant permits, a document containing such particulars, in such form and authenticated in such manner as the Accountant may from time to time prescribe.

(11) Where funds to be paid into Court are to be lodged at the Accountant’s Office, a lodgment of funds in Court not directed by an order may be made upon a direction to the Institution, or other company or body corporate, to be issued by the Accountant upon a request for lodgment signed by or on behalf of the person desiring to make such lodgment.

(12) A direction pursuant to an order of the Court may be transmitted by the Clerk to the Accountant electronically in such form and manner and subject to such conditions and exceptions as the President may from time to time direct.

(13) An order containing a direction for lodgment of funds in court shall, within 7 days of the making of the order, be taken up by the plaintiff or other party for whose benefit the lodgment is to be made and served by that party on the defendant or other party required to make the lodgment.

(14) The defendant or other party directed to make a lodgment of funds in court shall lodge the funds concerned in court within 28 days of service upon that party of the order directing such lodgment.

3. (1) In respect of any category of proceedings, or of awards or lodgments made in proceedings, which has not been prescribed by the President for the purposes of sub rules 1 or 3 of rule 2 of this Order, the Accountant may, in consultation with the Clerk or Clerks, prescribe a bank or other institution, being the holder of a licence to carry on banking business within the State, at which moneys to be lodged in court in any one or more court areas shall be paid in.

(2) Where the Accountant has in respect of any one or more court areas prescribed a bank or other institution in accordance with and for the purposes of sub rule 1 hereof, moneys to be lodged in court within any category to which that sub rule refers shall be paid in at such bank or institution, and the bank or institution shall cause a receipt to be given to the person making the lodgment.

4. (1) A person required to make a lodgment in court pursuant to an order, shall be at liberty to make the same without further order, notwithstanding that the order may not have been served, or the time thereby limited for making such lodgment may have expired.

(2) Where the time limited for making such a lodgment has expired, the person required to make the lodgment shall pay into court an additional sum by way of interest upon the amount to be lodged at such rate or rates and subject to such conditions and exemptions as the President may, subject to any provision of statute applicable, from time to time direct.

(3) If any sum of money has by reason of such default become payable by such person for interest, or in respect of dividends or otherwise, he shall be at liberty to lodge in Court such further sum upon a request signed by or on behalf of the person desiring to make such lodgment; provided that any such subsequent lodgment shall not affect or prejudice any liability, process, or other consequence to which such person may have become subject by reason of his default in making the same within the time so limited.

III. Investment

5. (1) Where moneys lodged with the Accountant are directed or required to be invested such investment shall, subject to sub rule 2 hereof, be held in the name of the Accountant.

(2) Where moneys lodged with the Accountant are directed pursuant to rule 5 of Order 7, or otherwise required, to be secured or invested, such investment may be held, as to the whole or part or parts thereof, in the name of such nominee or nominees and sub nominee or sub nominees as the Accountant may, with the approval of the President, specify.

(3) Where the Accountant is directed or required to sell, encash or otherwise realise an investment he shall give all such necessary directions for that purpose as soon as may be and shall ensure that the proceeds of such sale, encashment or realisation shall be paid as soon as may be to the account of the Accountant.

IV. Payment, Delivery and Transfer of, and other Dealings with Funds

6. Where funds to be paid into Court are to be lodged at the Accountant’s Office, a direction for the payment or transfer of funds pursuant to an order of the Court shall, save where a direction for payment or transfer of funds is transmitted electronically pursuant to sub rule 12 of rule 2 of this Order, be issued by the Accountant upon receipt from the Clerk of a certified copy of the order or, where the Accountant permits, a document containing such particulars, in such form and authenticated in such manner as the Accountant may from time to time prescribe.

7. (1) Where funds have been lodged with the Accountant -

(a) Every direction by the Accountant for the payment, delivery, or transfer of funds or securities out of Court, or for the sale, investment, or carrying over of funds, other than one transmitted by electronic means in pursuance of sub rule 6 hereof, shall be signed by (i) the Accountant, or, in his absence, the deputy Accountant or (ii) the Chief Clerk of the Accountant’s office.

(b) The name of every officer authorised to sign directions in pursuance of paragraph (a) hereof shall be notified to the Institution and to any other person required to act on such directions together with the time for which, in the case of temporary appointment, the same is to continue; and such notification shall, in the case of the Accountant and the deputy Accountant, be signed by the Chief Executive of the Courts Service.

(2) Where funds have been lodged with the Accountant -

(a) Every such direction shall be countersigned by such officer in the Accountant’s Office as shall have been appointed by the Accountant for that purpose.

(b) The name of every officer authorised to countersign directions in pursuance of paragraph (a) hereof shall be notified to the Institution and to any other person required to act on such directions together with the time for which, in the case of temporary appointment, the same are to continue; and such notification shall be signed by the Accountant or the Chief Clerk of the Accountant’s office.

(3) An officer countersigning any such direction shall compare it with the copy of the schedule as filed in the Accountant’s Office, and shall satisfy himself that such direction is authorised by and in conformity with such schedule. Such officer shall note the directions which he countersigns, and the date of countersigning, in the copy of the schedule.

(4) The name of every officer authorised to sign directions in pursuance of sub rule 1 hereof and of every officer authorised to countersign directions in pursuance of sub rule 2 hereof shall be notified to the Institution and to any other company required to act on such directions together with the time for which, in the case of temporary appointment, the same are to continue; and such notification shall be under the hand of the Accountant or the Chief Clerk of the Accountant’s office.

(5) Directions countersigned by any such officer during the continuance of his authority shall be sufficient, although the same shall not be presented to be acted on until after his authority shall have ended.

(6) The Accountant may effect payment or transfer of funds out of Court electronically in such form and manner as the President may from time to time direct.

(7) In this rule the word “direction” means a cheque, draft, warrant, or other authority to the Institution to pay or receive money lodged or to be lodged in Court or an instrument transferring any stocks or shares standing in the name of the Accountant.

8. (1) Where the Accountant is required by order or otherwise to pay any dividend, annuity or other periodical payment, he shall, at the expiry of eleven months from the date of the first such payment, and at intervals of not more than twelve months thereafter, cause inquiries to be made for the purpose of reviewing the relevant particulars of the payee and revising his records where appropriate.

(2) Unless the order or authority for payment directs otherwise, where a person (in this rule referred to as “the payee”) is entitled under an order or authority for payment to receive a payment, the following provisions shall apply:

(a)       where --

(i)        within fourteen days from the date of the order or other authority for payment the Accountant receives a request in writing from the payee that the direction for payment be delivered to the payee at the Office of the Accountant, and

(ii)       the payee thereafter attends personally at the Office of the Accountant,

the Accountant may deliver the direction for payment to the payee at the Office of the Accountant;

(b)       where a power of attorney in executed by the payee and attached in accordance with the instructions appended to such form, is sent or delivered to the Accountant, he may deliver the direction for payment to the attorney nominated by the payee -

(i)             in person,

(ii)            by transfer to an account in the name of the attorney, as the attorney may, by request made in writing, require, or

(iii)           by post, to an address specified in writing by the attorney.

(3) (a) Before directing any payment whether authorised by order or other authority, the Accountant may require evidence of the identity of the payee or, as the case may be, any attorney nominated by a power of attorney in accordance with sub rule (2) (b) of this rule to accept such payment, sufficient to satisfy the Accountant.

(b) Where the direction for payment is a draft, the same shall be payable to the payee, and crossed so as to be payable only through a banker.

V. Audit of accounts

9. (1) On or before the 31st day of January in each year the Accountant shall prepare an account, in such form as may be prescribed by him with the approval of the President, showing the total amount of funds paid or transferred into and out of Court in the year ended on the 30th day of September then last year past and the balance of funds in Court at the commencement and close of such year.

(2) The Accountant shall, not later than the 31st day of January in each year, arrange for an audit of the account referred to in sub rule 1 hereof to be carried out by an independent auditor not later than the 31st day of March in each year immediately following the year to which the account relates.

(3) Copies of the said account, audited in accordance with sub rule 2 hereof, shall be forwarded to the Minister for Justice, Equality and Law Reform and the Minister for Finance.”

(iii) by the substitution in Order 41, rule 2 thereof for sub rule (3) thereof of the following:

“(3) The plaintiff may at any time before the day fixed for the hearing accept the amount so lodged, and thereupon the said amount may be paid to him or her, without the necessity of any formal decree or order by the Judge, upon the plaintiff lodging with the Clerk or (where the amount concerned has been lodged with the Accountant) with the Accountant and the Clerk, a signed notice of acceptance of the amount lodged in respect thereof in full satisfaction of the claim, save as to costs; such costs, in default of agreement, to be measured by the Judge.”

Given this 11th day of April 2005

EXPLANATORY NOTE

(This does not form part of the instrument and does not purport to be a legal interpretation)

These Rules facilitate the centralised management of certain categories of District Court funds.