Local Rule 3011-1: DISPOSITION OF UNCLAIMED FUNDS
Bankr. D.S.C. — General rule
LOCAL RULE 3011-1: DISPOSITION OF UNCLAIMED FUNDS a. Depositing of Unclaimed Funds. The party submitting the unclaimed funds shall certify that the claim remains unsatisfied, describe the party's efforts to locate claimant, and, pursuant to Fed. R. Bankr. P. 3011, state the last known address for the claimant. The Clerk's Office maintains a searchable database of unclaimed funds deposited with the Court pursuant to 11 U.S.C. § 347.
b. Chapter 11 Liquidating Plan. A chapter 11 liquidating plan may provide that any unclaimed funds or undistributable funds1 may be:
1. Redistributed to other creditors or administrative claimants, or 2. Donated to a not-for-profit organization, which shall be identified in the plan or disclosure statement accompanying the plan. In order for any donation pursuant to this rule to be effective, counsel for the proponent of the plan shall, at the confirmation hearing, call the Court's attention to the provision.
c. Application for Payment of Unclaimed Funds. Any party2 who seeks the release of unclaimed funds held pursuant to 11 U.S.C. § 347(a) must file an Application for Payment of Unclaimed Funds in substantial conformance with Director's Form 1340 and serve a copy of the Application on the United States Attorney for the District of South Carolina.
d. Identifying Information. The applicant shall also submit the Court's local form, which requires information confirming the applicant's identity along with a Form W-9, AO 213P, or AO 213.3 e. Supporting Documentation. The following supporting documentation, if applicable, shall be filed with the Application:
1. For Owners of Record.
A. Proof of Identity.
2. For Successor Claimants. A successor claimant is a party entitled to the unclaimed funds as the result of a transfer, assignment, purchase, merger, acquisition, or succession by other means.
A. Business Non-Individual Claimants.
(i) Proof of identity of owner of record;
(ii) A notarized power of attorney signed by an officer of the successor business;
(iii) A statement of the signing officer's authority;
(iv) Documentation establishing chain of ownership from the original business claimant; and
(v) A certificate of service pursuant to SC LBR 9013-3(a) indicating the Application was served on the owner of record and all previous owner(s) of the claim at their current address, or an affidavit or declaration consistent with 28 U.S.C. § 1746 explaining why service on the owner of record and all previous owner(s) is not possible or necessary.
B. Individual Claimants.
(i) Proof of identity of the owner of record;
(ii) Proof of identity of the successor claimant;
(iii) Documentation evidencing the transfer of claim; and
(iv) A certificate of service pursuant to SC LBR 9013-3(a) indicating the Application was served on the owner of record and all previous owner(s) of the claim at their current address, or an affidavit or declaration consistent with 28 U.S.C. § 1746 explaining why service on the owner of record and all previous owner(s) is not possible or necessary.
3. For Decedent's Estate.
A. Proof of identity of the owner of record;
B. Proof of personal identity of the estate administrator; and C. Certified copies of probate documents establishing the representative's right to act on behalf of the decedent's estate.
4. For Claimant Representatives 4 A. Proof of identity of the owner of record;
B. A notarized, original power of attorney signed by the claimant on whose behalf the representative is acting;
C. Proof of identity of the representative; and D. Documentation sufficient to establish the claimant's entitlement to the funds.
f. Objection. Any party objecting to the relief sought in the application shall, within twenty-one (21) days after service thereof, serve upon the applicant and other appropriate parties and file with the Court an objection to the application. If no objection is filed with the Court within twenty-one (21) days after the filing and service of the application, the application and accompanying documents may be considered by the Court without hearing.
Notes:
(2023) Paragraph (a) was amended to note the unclaimed funds searchable database maintained by the Clerk's Office to conform to amendments to Fed. R. Bankr. P. 3011.
(2025) Paragraph (e)(2) was amended to require successor claimants serve the Application on the previous owner(s) of the claim or provide a sworn statement as to why service is not possible or necessary.
1 For purposes of this rule, undistributable funds are any funds other than unclaimed funds, including, but not limited to, funds that cannot be disbursed because (a) a creditor has affirmatively rejected a distribution, (b) the administrative costs of distribution effectively interfere with distribution, or (c) all creditors, including administrative claimants, have been paid in full and there is no one that has a right to the funds. 2 For purposes of this rule, the "applicant" is the party filing the application and the "claimant" is the party entitled to the unclaimed funds. The applicant and the claimant may be the same. Parties other than individuals must be represented by an attorney admitted to practice in this Court. See SC LBR 2090-1 and 9011-2(c). 3 These forms shall be filed in CM/ECF and public access shall be restricted. Form W-9 is available at www.irs.gov and Forms AO 213P and AO 213 are available at www.uscourts.gov/services-forms/forms. 4 The court will only issue payment to the owner of record.