Local Rule 3011-1: DISBURSEMENT OF UNCLAIMED FUNDS

Rule 3011-1 DISBURSEMENT OF UNCLAIMED FUNDS

(a) DEPOSIT OF UNCLAIMED FUNDS INTO THE COURT. Funds deposited into the court as unclaimed funds pursuant to 11 U.S.C. § 347(a) shall be deposited via ACH through pay.gov.

(b) PROCEDURE FOR COLLECTING UNCLAIMED FUNDS. The following shall apply to the deposit and release of unclaimed funds:

(1) DEPOSIT OF UNCLAIMED FUNDS INTO UNITED STATES TREASURY. All unclaimed funds collected by the court shall be deposited into the United States Treasury.

(2) APPLICATION FOR PAYMENT OF UNCLAIMED FUNDS. An Application for Payment of Unclaimed Funds (Director's Form B 1340) shall be filed with the Clerk. The form can be found on the Forms page of the court's website, www.nceb.uscourts.gov.

(3) PROOF OF IDENTITY AND RIGHT TO FUNDS. In addition to the Application for Payment of Unclaimed Funds, the claimant's identity and right to funds must be shown through at least one of the following methods:

(A) All claimants must provide with the application: (i) a copy of an unexpired passport or valid driver's license to establish identity of an individual claimant; (ii) the last four digits of the social security number or tax identification number of the claimant; and (iii) any additional documentation that establishes the claimant's right to the unclaimed funds and evidences its identity (e.g., a copy of a proof of claim or a copy of a utility bill from an old address).

(B) Successor claimants (those other than the owner of record of the claim who have become legally entitled to the funds) must specifically provide with the application the following additional information:

(i) PROOF OF IDENTITY. Successor claimants shall provide proof of identity as follows: a. Proof of identity of the owner of record, proof of identity of the successor claimant, and documentation evidencing the transfer of claim and the successor's entitlement to collect the funds; or b. Representatives of estates must provide proof of identity of the owner of record, proof of identity of the estate's representative and certified copies of documents establishing the representative's right to act on behalf of the estate.

(ii) SERVICE. When an application for payment of unclaimed funds is based on succession, the successor claimant is required to: a. provide proof of service showing that the application for payment of unclaimed funds was sent to the previous owner(s) of the claim at their current address; or b. include a statement of why service on the previous owner(s) is not possible or necessary.

(C) The Clerk at their discretion may require additional evidence to support the identity of an Applicant. This may include, but is not limited to, a recorded video conference meeting, at which the Bankruptcy Administrator may participate, wherein the Applicant may be required to further substantiate their identity or authorization to file the Application.

(c) CLAIMANT REPRESENTATIVES.

(1) The Application for Payment of Unclaimed Funds must be filed on behalf of claimant representatives by an attorney who is a member in good standing of the North Carolina State Bar and who has been admitted to practice before the United States District Court for the Eastern District of North Carolina.

(2) In addition to compliance with subparagraph (b)(2) and (3) above, claimant representatives must provide to their attorney who shall file as a separate entry with the court: (A) proof of the identity of the owner of record and any successor claimant; (B) a notarized original power of attorney signed by the claimant on whose behalf the representative is acting, acknowledging the representative's authorization to seek funds on behalf of the claimant and acknowledging that the claimant is aware of the right to seek collection of the funds without the assistance of the representative; (C) proof of identity of the representative; and (D) a copy of the letter of engagement with the claimant, or other documentation of the agreement between the claimant and the claimant representative, disclosing the fee to be collected by the claimant representative and/or the attorney for the claimant representative.

(3) Unclaimed funds requested by claimant representatives will be paid by check made payable jointly to the claimant and the attorney for the claimant representative.

(d) AO-213P or W-9 REQUIRED. Pursuant to the Vendor Administration and 1099 Issuance Procedures, the court requires the claimant to complete either an AO-213P or a W-9 form that includes the claimant's social security or tax identification number and signature. These forms may be found on the court's website and must be provided to the court at the time of the filing of the Application for Payment of Unclaimed Funds. If the application is being electronically filed, the AO-213P or W-9 shall be filed as "Unclaimed Funds Supporting Documents." Failure to complete, sign, and return this form may result in non-payment.