Local Rule 3011-1: Disbursement of Unclaimed Funds

Local Rule 3011-1 Disbursement of Unclaimed Funds Procedure for Disbursing Unclaimed Funds. The following procedure shall apply to the disbursement of unclaimed funds:

(a) Deposit of Unclaimed Funds into United States Treasury. All unclaimed funds collected by the court shall be deposited into the United States Treasury.

(b) Motion for Disbursement of Unclaimed Funds. Claimants shall use Local Form 5 ("Motion for Disbursement of Unclaimed Funds") to request disbursement of unclaimed funds, including the attached notice of hearing.

(c) Service/Notice. The claimant shall serve a copy of Local Form 5 on the United States Attorney, the Bankruptcy Administrator, the trustee, the debtor, and the debtor's attorney (if any) at least 14 days prior to the hearing date.

(d) Claimants. All claimants shall establish proof of their right to the unclaimed funds by filing Local Form 5 and appearing at a hearing. A claimant may be required to present testimony in open court that convinces the court of the claimant's right to the unclaimed funds.

A Motion for Disbursement of Unclaimed Funds should include the following:

(1) An affidavit explaining the claimant's entitlement to the requested funds and bearing the seal and certificate of a notary public;

(2) A copy of the claimant's unexpired passport or valid driver's license to establish identity;

(3) The last four digits of the claimant's Social Security number or tax identification number; and

(4) Any additional documentation that establishes proof of the claimant's right to the unclaimed funds and evidences identity such as a copy of a proof of claim or a copy of a utility bill from an old address.

(e) Individual Claimants.

(1) An individual claimant may file Local Form 5 pro se.

(2) In cases of hardship, individual claimants may request a waiver of the requirement that they appear in person at the hearing on the Motion for Disbursement of Unclaimed Funds. Such requests will be considered by the court on a case-by-case basis and must establish to the court's satisfaction the claimant's identity and entitlement to the unclaimed funds.

(f) Non-individual claimants. All non-individual claimants (such as partnerships, corporations, and governmental agencies) must be represented 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 Western District of North Carolina. A non-individual claimant may establish proof of its right to the unclaimed funds by having a designee personally appear at the hearing and present testimony in open court that convinces the court of the claimant's right to the unclaimed funds. In lieu of appearing in court, the non-individual claimant may file an affidavit of its designated officer or general/managing agent stating the factual and legal basis for its claim to the funds in question.

(g) Successor Claimants. Successor claimants (claimants other than the owner of record who have become legally entitled to the unclaimed funds) shall provide documents establishing the chain of ownership of the original claimant as proof of entitlement to the claim. The following specific information should be provided:

(1) 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;

(2) If the successor claimant is a representative of an estate, he or she must provide proof of identity of the claimant of record, proof of identity of the estate representative, and certified copies of documents establishing the representative's right to act on behalf of the estate.

(h) Funds Locators. The court does not issue payment solely to funds locators. Payments will be issued in the name of the owner of record and mailed in care of the funds locator.

(i) Vendor Administration and 1099 Issuance. Pursuant to the Vendor Administration and 1099 Issuance Procedures, the court requires all claimants to complete a Request for Vendor Information and TIN Certification form that includes the claimant's Social Security number or tax identification number and signature prior to receiving payment. This form can be found on the court's website (www.ncwb.uscourts.gov) and should be returned to the court by U.S. or electronic mail; this form should not be filed in CM/ECF. FAILURE TO COMPLETE, SIGN, AND RETURN THIS FORM MAY RESULT IN NON-PAYMENT.