Registry of Court and Custodial Accounts
Certain funds may be ordered by the courts to be deposited into the Registry of the Court account or into separate or interest bearing accounts. The County Clerk acts only in a custodial capacity in relation to these accounts and is not the trustee for the beneficial owner of these funds. A court order signed by the Judge is required prior to any funds being deposited.
Requirements for Investment of Funds: Pursuant to Chapter 117 of the Local Government Code and requirements of the County's financial institution, the following requirements must be met before any funds can be invested in interest bearing accounts. Placing funds in the Registry of the Court does not automatically place the funds in an interest bearing account. The Registry of the Court is not an interest bearing account. An interest bearing account may be established if the following requirements are met.
1. Signed Judgment or Order directing funds be invested in an interest bearing account as opposed to just "Registry of the Court".
2. Completed "Data Required for Investment of Funds" form which may be obtained from the County Clerk.*
3. Funds to be invested.*
*Please provide the form and funds together if possible.
Upon filing of the required Judgment or Order and receipt of the completed ‘data' form and funds, the clerk will open the account(s) at the County's depository. The county depository cannot pay interest on funds that are not accompanied by a Tax ID number or Social Security number of the person to whom the interest income shall be taxed by the Federal Government. Funds cannot be deposited in interest bearing accounts under Johnson County's Tax ID number.
The beneficiary and other interested parties will be notified of account information within 10 days of opening of the account(s). The beneficiary (or beneficiary's guardian) will receive a 1099 form annually from this office. Change of address information should be provided in writing to the County Clerk, Court Section, PO Box 662, Cleburne, Texas 76033. If the beneficiary or beneficiary's guardian does not receive notice of the opening of the account or the annual 1099, such beneficiary or beneficiary's guardian should promptly contact the County Clerk's office.
Requirements for Withdrawal: Funds may only be withdrawn from the Registry of Court account or an interest bearing account upon filing of a recently signed "Order to Release Funds". A judgment or order to deposit funds stating when the funds may be released to the beneficiary is not sufficient for the depository to release the funds to the beneficiary. The County Clerk will release the funds to the beneficiary only upon presentation of a current, valid form of identification (driver's license, picture ID, or two forms of ID without a picture). The funds may be released to the beneficiary's attorney. As only two clerks in the office are authorized to open or close accounts, please allow 2 to 3 days from the date the order is received for administering these accounts.
Administrative/Accounting fees: To compensate the county for the accounting and administrative expenses incurred for maintaining the accounts the following fees will be withheld at the time of withdrawal:
- 5% of total withdrawn not to exceed $50.00 on funds in the Registry account. (Local Government Code 117.055)
- 10% of total interest earned in any separate or interest bearing account. (Local Government Code 117.054)
It is the responsibility of the beneficiary, the beneficiaries guardian, or his/her attorney to ensure that the proper documents, information required for investment of funds, and the funds themselves are received by the clerk.
For further information contact Karen Alexander at (817)556-6323 Ext 1302.