Local Rule 3011-1: Payment of Unclaimed Funds.

Rule 3011-1. Payment of Unclaimed Funds.

(a) Application. An applicant shall fully complete, sign, date, and file an application for payment of unclaimed funds that substantially conforms to Appendix 3H, which is a fillable version of Director's Form 1340.

(b) Supporting documents. The applicant shall provide supporting documents establishing the claimant's entitlement to the funds. Any personal identifying information, such as a Social Security number, a date of birth, or a full account number, must be redacted from the supporting documents before they are filed. The applicant may provide the supporting documents by referencing a specific proof of claim that contains the supporting documents or by filing the supporting documents, as described below based on the classification of the claimant, as an attachment to the application:

(1) Individual. Documents establishing the individual's entitlement to the funds, including, if the individual is a successor claimant, documents establishing the transfer of the claim from the owner of record to the individual.

(2) Business entity. Documents establishing the business entity's entitlement to the funds, including, if the business entity is a successor claimant, documents establishing the transfer of the claim from the owner of record to the business entity.

(3) Decedent's estate:

(A) Documents establishing the decedent's identity and entitlement to the funds, including, if the decedent is a successor claimant, documents establishing the transfer of the claim from the owner of record to the decedent; and

(B) A certified copy of the document establishing the decedent's administrator's, executor's, or representative's right to act on behalf of the decedent.

(4) Claimant's representative, including an attorney, a funds locator service, or other agent:

(A) A notarized power of attorney signed by the claimant on whose behalf the agent or the funds locator service is acting; and

(B) Documents establishing the claimant's entitlement to the funds, including, if the claimant is a successor claimant, documents establishing the transfer of the claim from the owner of record to the claimant.

(c) Required identifying information. The applicant shall provide the required identifying information described below. The Clerk or an attorney electronically filing the required identifying information shall use the CM/ECF event "Unclaimed Funds Identifying Information" found under "Bankruptcy-Other," so the identifying information is not viewable on the public docket.

(1) A completed Vendor Information/TIN Certification (AO Form 213) or an Internal Revenue Service W-9 form or, for a foreign claimant, a completed Request to Determine Foreign Vendor Tax Payments (AO Form 215) and an Internal Revenue Service W-8 form; and

(2) For each claimant, agent for a claimant, or applicant who is an individual, a copy of a current government-issued identification that includes a photograph and a current address, such as a driver's license or a passport.

(d) Service. The applicant shall serve a copy of the application, the supporting documents, and the required identifying information on the United States Attorney for the District of South Dakota at Post Office Box 2638, Sioux Falls, SD 57101-2638, and shall serve a copy of the application on the current and any prior holder or owner of the claim.

(e) Notice. The Court will enter and serve on parties in interest an order that sets a last date for objections that is 24 days after service of the order. The order will constitute the notice of the application.

(f) Payment of funds. If an order is entered authorizing the payment of unclaimed funds, the Clerk will pay the funds only after the order is final. Any payment of funds by the Clerk involving a claimant and a funds locator service shall be issued jointly payable to the claimant and the funds locator service.

REFERENCES: 11 U.S.C. § 347(a); 28 U.S.C. § 2042; Fed.R.Bankr.P. 3011.

Practice Pointers: Unclaimed funds may be located at ucf.uscourts.gov. Select "SDB - South Dakota" for the United States Bankruptcy Court for the District of South Dakota from the drop-down list and then enter the applicable search criteria. A link is also available on the Court's website at www.sdb.uscourts.gov.

Instructions for the unclaimed funds process and Director's Form 1340 are located under "Links and Resources – Unclaimed Funds Information" on the Court's website at www.sdb.uscourts.gov.

The Internal Revenue Service forms may be located at www.irs.gov. The federal court's Administrative Office (AO) forms may be obtained from www.uscourts.gov/services-forms.

A business entity may, through an authorized agent, file an application for payment of unclaimed funds. The business entity is not required to utilize an attorney for this particular application. If an attorney files an application, however, it must be filed electronically.

A closed bankruptcy case does not need to be reopened for an application for payment of unclaimed funds to be filed.

The Court will prepare the order setting the objection deadline and the order granting or denying the application.

If the Court grants the application, the Clerk will not disburse the funds until the 14-day appeal time on the order has expired.

Unclaimed funds are subject to the Treasury Offset Program administered by the Bureau of the Fiscal Service's Debt Management Services. Under it, the bureau will collect delinquent debts owed to federal agencies and states in accordance with, for example, 26 U.S.C. § 6402(d) and 31 U.S.C. § 3720A.