payment into court

A payment into court may be made for a number of reasons during the course of litigation and dispute resolution. Once money is paid into court (through the Court Funds Office) , it may not be paid out without a further court order. 

payments are not limited to money; securities may also be lodged with the Office.

Money may be paid into court for any number of reasons. Common purposes for payments include (amongst many others):

1. to make out a defence of tender;
2. to comply with an order to pay security for costs;
3. to set up a fund to support an offer of settlement by a defendant.

Where a payment is made, every other party to the proceedings must be notified, and a certificate of service filed with the court.  The fund bears interest at the rate prescribed by the Lord Chancellor, and belongs to the person paying the money in until the date of judgment, provided that the sum ordered to be paid does not exceed the sum paid in.

Usage: In order to continue the legal proceedings, the claimant was required to make a payment into court within 21 days by way of security for costs.

Related Words: security for costs; application notice; litigation; injunction; specific performance; court order.