Any settlement that purports to "forfeit" property binds only the parties to it and forfeits only that interest in the property that the claimant possesses. The following procedures must be followed to ensure that a valid and complete civil judicial forfeiture by settlement occurs:

1. • A civil verified complaint for forfeiture of the property must be filed in the U.S. District Court to establish the court's jurisdiction. Filing an action as a "Miscellaneous Docket" and other attempts to short-cut the process will not be recognized as a valid forfeiture.
2. • All known parties in interest must be given written notice, and notice by publication must be made.
3. • If no timely claim has been filed pursuant to the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions, a default judgment must be sought, pursuant to Federal Rule of Civil Procedure 55, against known interested parties and unknown parties who were notified by publication.
4. • Proposed orders of forfeiture must be filed with the settlement agreement and include the terms of the settlement agreement. See Chapter 11 of the Asset Forfeiture Policy Manual ("Settlements in Civil Judicial Forfeiture Cases").

[updated May 2010]