Local Rule 6005-1: Auctioneers

Local Rule 6005-1 Auctioneers

(a) Conditions Precedent to Employment. A trustee may employ and compensate an auctioneer if the following conditions are satisfied in advance:

(1) The auctioneer must be licensed and in good standing with the North Carolina Auctioneers Commission consistent with North Carolina General Statute § 85B-4 or in such other jurisdiction where the auctioneer's services are to be performed;

(2) The auctioneer must provide the trustee and the Bankruptcy Administrator with a bond in favor of the United States sufficient to cover 100% of the estimated sales proceeds;

(3) The auctioneer must maintain adequate insurance for loss to the estate; and

(4) The affidavit included with the application to employ shall be executed by the auctioneer and must affirmatively set out compliance with the conditions above.

(b) Employment Without Application to the Court. In a Chapter 7 case where the gross sales proceeds of an auction conducted pursuant to this rule are reasonably anticipated by the trustee to be less than $50,000, the trustee may elect to employ an auctioneer without application to the court and shall be authorized to pay the auctioneer a commission of up to 15 percent of gross sales of the auction and for reimbursement of expenses of up to 10 percent of gross sale proceeds. Where employment is without application under this paragraph, the auctioneer's affidavit referred to above shall be delivered to the trustee and the Bankruptcy Administrator in lieu of filing with the court.

(c) Trustee's Report of Sale. The trustee shall file a report of sale within 30 days following the conclusion of an auction.