Local Rule 6004-2: Liquidators/Auctioneers and Appraisers
Bankr. S.D. Ill. — Civil rule
L.R. 6004-2 – Liquidators/Auctioneers and Appraisers. A. Bond Required. It is the responsibility of the Trustee to monitor the auctioneer or other liquidator and unless otherwise ordered by the Court, to assure that any auctioneer or other liquidator who will come into possession or control of any asset or proceeds of any asset of an estate, posts a bond with the United States Trustee on behalf of the United States of America, for the full value of the assets in the possession or control of the auctioneer or liquidator.
B. Report of Sale. The Trustee shall file a report of sale within 14 days of any sale. At the time of filing, the Trustee shall transmit a copy of the report of sale to the United States Trustee along with an itemized list of the property sold, the name of each purchaser, and the price received for each item or lot of inventory. The Trustee shall make available upon request said itemized list.
C. Application for Compensation. In the event the auctioneer or liquidator seeks compensation and costs of sale, an application for compensation containing a detailed itemization of requested compensation and actual expenses shall be filed with the Court.
D. Remittance of Gross Proceeds. Upon filing an application to employ an auctioneer or other liquidator and receiving Court approval, it is the responsibility of the Trustee to monitor the auctioneer or other liquidator, and to assure that, unless otherwise ordered by the Court, all gross sale proceeds are remitted to the Trustee within 14 days of the sale. Upon motion of any party in interest and for good cause shown, the Court may authorize the auctioneer or other liquidator to submit the net proceeds or to turn over to a secured creditor the net proceeds realized from the sale of that creditor's collateral.
E. Validity of Checks. The validity of any checks or bank drafts accepted by the auctioneer or other liquidator shall be the sole responsibility of the auctioneer or liquidator.
F. Separate Escrow Account. It is the responsibility of the Trustee to monitor the auctioneer or other liquidator, and to assure that, if the auctioneer or liquidator does not remit the entire sale proceeds to the Trustee within 14 days, and the proceeds of the property sold are $50,000.00 or more, the auctioneer or liquidator shall open a segregated escrow or trust account for deposit of the sale proceeds. This account shall be designated by the bankruptcy estate case name and shall require the co-signature of the Trustee for any withdrawals. If the proceeds of the sale are less than $50,000.00, the proceeds may be deposited in the auctioneer's or liquidator's trust or client fund account.
G. Appraiser Serving as Auctioneer or Liquidator. No appraiser, agent or employee of an appraiser who has been employed in a bankruptcy case may serve as the auctioneer or liquidator in that same case without the approval of the Court.
H. Auctioneer or Liquidator Purchasing at Sale. It is the responsibility of the Trustee to monitor and to assure that no auctioneer or other liquidator, or any agent, employee or family member of the auctioneer or liquidator employed in a case, purchase any asset from the estate.