CHAPTER 8. AUCTIONEER RECOVERY FUND
IC 25-6.1-8
Chapter 8. Auctioneer Recovery Fund
IC 25-6.1-8-1
Establishment of fund; administration; investments
Sec. 1. (a) The auctioneer recovery fund is established for thepurpose set out in this chapter. The fund shall be administered by theauctioneer commission.
(b) The treasurer of state shall invest the money in the fund notcurrently needed to meet the obligations of the fund in the samemanner as other public funds may be invested. Interest that accruesfrom these investments shall be deposited in the fund.
(c) Money in the fund at the end of a fiscal year does not revert tothe state general fund, except as provided in section 2.1 of thischapter.
As added by P.L.256-1987, SEC.4. Amended by P.L.143-1990,SEC.1.
IC 25-6.1-8-2
Surcharge; formula; assessment
Sec. 2. (a) If the total amount in the auctioneer recovery fund(including principal and interest) is less than three hundred sixtythousand dollars ($360,000) on June 30 in an odd-numbered yearafter the payment of all claims and expenses, the auctioneercommission shall assess a surcharge according to the followingformula in order to maintain the fund at an approximate level of fourhundred thousand dollars ($400,000):
STEP ONE: Determine the amount remaining in the fund onJune 30 of the current year after all expenses and claims havebeen paid.
STEP TWO: Subtract the amount determined under STEP ONEfrom four hundred thousand dollars ($400,000).
STEP THREE: Determine the number of licensees who hadlicenses in effect on June 30 of the current year.
STEP FOUR: Divide the number determined under STEP TWOby the number determined under STEP THREE.
(b) The auctioneer commission shall assess the surchargedescribed in subsection (a) against each licensee who:
(1) receives an initial license;
(2) receives a renewal license; or
(3) receives a temporary permit.
(c) The auctioneer commission shall assess the surchargedescribed in subsection (a) for the two (2) year period beginning onJuly 1 of the current year through June 30 of the next odd-numberedyear.
(d) The surcharge assessed under this section is in addition to anyother fee under this article.
As added by P.L.256-1987, SEC.4. Amended by P.L.143-1990,SEC.2; P.L.214-1993, SEC.17.
IC 25-6.1-8-2.1
Reversion of excess funds
Sec. 2.1. If the total amount in the auctioneer recovery fund(including principal and interest) exceeds five hundred fifty thousanddollars ($550,000) at the end of a state fiscal year after the paymentof all claims and expenses, the amount in excess of five hundred fiftythousand dollars ($550,000) reverts to the state general fund.
As added by P.L.143-1990, SEC.3.
IC 25-6.1-8-3
Interest credited; payment of expenses
Sec. 3. Any interest earned on investment of money in theauctioneer recovery fund shall be credited at least annually to thefund. No money may be appropriated from the state general fund forpayment of any expenses incurred under this chapter, and none ofthese expenses may be charged against the state.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-4
Claims against fund; applications; amount of loss; limitation onrecovery
Sec. 4. (a) If any aggrieved person obtains a final judgment in anycourt against any licensee to recover damages for failure to meet theobligations of a licensee under this article and the rules adoptedunder this article (with or without findings by the auctioneercommission) that results in an actual cash loss to the aggrievedperson, the person may, upon termination of all proceedingsincluding appeals and proceedings supplemental to judgment forcollection purposes, file a verified application in the court in whichthe judgment was entered for an order directing payment out of theauctioneer recovery fund of the amount of actual and direct loss inthe transaction that remains unpaid upon the judgment. The amountof actual and direct loss may include court costs but may not includeattorney's fees or punitive damages awarded. The amount that maybe paid from the auctioneer recovery fund may not exceed twentythousand dollars ($20,000) per judgment and an aggregate lifetimelimit of fifty thousand dollars ($50,000) with respect to any one (1)licensee.
(b) This section applies only to a final judgment that awardsdamages for an act by the licensee described in subsection (a) thatarises directly out of any transaction:
(1) that occurred when the licensee was licensed;
(2) for which a license was required under IC 25-6.1; and
(3) that occurred after December 31, 1987.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-5
Claims against single licensee in excess of dollar limitation; joinderof claims; payment; insufficient funds
Sec. 5. (a) If the payment in full of two (2) or more pending valid
claims that have been filed by aggrieved persons against a singlelicensee would exceed the fifty thousand dollars ($50,000) limit setforth in section 4 of this chapter, the fifty thousand dollars ($50,000)shall be distributed among the aggrieved persons in the ratio thattheir respective claims bear to the aggregate of all valid claims or inany other manner that a court of record may determine equitable.This money shall be distributed among the persons entitled to sharein it without regard to the order of priority in which their respectivejudgments have been obtained or their claims have been filed.
(b) Upon petition of the commission, the court may require allclaimants and prospective claimants against one (1) licensee to bejoined in one (1) action, to the end that the respective rights of all theclaimants to the commission may be equitably adjudicated andsettled.
(c) On June 30 and December 31 of each year, the auctioneercommission shall identify each claim that the court orders to be paidduring the six (6) month period that ended on that day. Thecommission shall pay the part of each claim that is so identifiedwithin fifteen (15) days after the end of the six (6) month period inwhich the claim is ordered paid. However, if the balance in the fundis insufficient to pay the full payable amount of each claim that isordered to be paid during a six (6) month period, the commissionshall pay a prorated portion of each claim that is ordered to be paidduring the period. Any part of the payable amount of a claim leftunpaid due to the prorating of payments under this subsection mustbe paid (subject to the fifty thousand dollar ($50,000) limit describedin section 4 of this chapter) before the payment of claims ordered tobe paid during the following six (6) month period.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-6
Agents for service of process
Sec. 6. Any auctioneer, auction company, or auction house that islicensed or renews a license under this article after December 31,1987, and upon whom personal service cannot be made withreasonable diligence shall be considered to have appointed thecommission as the licensee's agent for service of process forpurposes of actions filed under section 4 of this chapter for recoveryfrom the auctioneer recovery fund. Service of process under thissection shall be made as nearly as practicable in the mannerprescribed by the Indiana Rules of Trial Procedure for service oncorporations.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-7
Limitation of actions; notice of commencement of action
Sec. 7. An order for payment from the auctioneer recovery fundmay not be issued unless the action to recover from the auctioneerrecovery fund was commenced within one (1) year after thetermination of all proceedings against the licensee for failure to meet
the obligations of a licensee under this article and the rules adoptedunder this article, including appeals and proceedings supplementalto judgment. When any person commences an action for a judgmentthat may result in an order for payment from the fund, the personshall notify the commission in writing of the commencement of theaction.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-8
Commission as defendant; hearings; order of payment of claim
Sec. 8. When any person files an application for an order directingpayment from the auctioneer recovery fund, the commission shall bemade a party defendant to the proceedings. The court shall conducta hearing on the application, and it may issue an order directingpayment out of the auctioneer recovery fund, as provided in section9 of this chapter, subject to the limitation of section 4 of this chapter,if the court finds:
(1) that there is no collusion between the judgment creditor andthe judgment debtor;
(2) that the judgment creditor is making application not morethan one (1) year after the termination of all proceedings inconnection with the judgment, including appeals andproceedings supplemental to judgment for collection purposes;
(3) that the judgment creditor has caused to be issued a writ ofexecution on the judgment and the officer executing the writhas made a return showing that no personal or real property ofthe judgment debtor liable to be levied upon in satisfaction ofthe judgment could be found or that the amount realized on thesale under the execution was insufficient to satisfy thejudgment;
(4) that the judgment creditor has diligently pursued thecreditor's remedies against all the judgment debtors and allother persons liable to the creditor in the transaction for whichthe creditor seeks recovery from the auctioneer recovery fund;
(5) that the failure to meet the obligations of a licensee underthis article and the rules adopted under this article arose directlyout of a transaction that occurred when the judgment debtor waslicensed and acted in a capacity for which a license is requiredunder this article and that the transaction occurred afterDecember 31, 1987; and
(6) that, in the event of a default judgment or a judgmententered upon stipulation of the parties, the judgment debtor'sacts constituted failure to meet the obligations of a licenseeunder this article and the rules adopted under this article.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-9
Payment of claim
Sec. 9. Upon a final order of the court directing that payment bemade out of the auctioneer recovery fund, the commission shall,
subject to sections 4 through 5 of this chapter, make the payment outof the auctioneer recovery fund as provided in section 5 of thischapter.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-10
Suspension of judgment debtor's license; repayment by licensee;interest
Sec. 10. If the commission is required to make any payment fromthe auctioneer recovery fund in settlement of a claim or toward thesatisfaction of a judgment under this chapter, the commission shallsuspend the judgment debtor's license. The licensee is not eligible tobe licensed again as either an auctioneer, auction company, orauction house until the licensee has repaid in full the amount paidfrom the auctioneer recovery fund with interest of twelve percent(12%) per annum.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-11
Subrogation
Sec. 11. When, upon order of any court, the commission hascaused payment to be made from the auctioneer recovery fund to ajudgment creditor, the commission is subrogated to the rights of thejudgment creditor with respect to the amount paid.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-12
Expenditure of interest
Sec. 12. Subject to the approval of the state budget agency, theauctioneer commission may expend the interest earned by theauctioneer recovery fund for publications that provide:
(1) information concerning the commission's activities andadministrative rulings; and
(2) other educational information concerning the practice ofauctioneering.
As added by P.L.256-1987, SEC.4.
IC 25-6.1-8-13
Attorney general; assistance to commission; expenses
Sec. 13. (a) The office of the attorney general shall provide thestaff assistance necessary to:
(1) enable the auctioneer commission to perform its dutiesunder this chapter; and
(2) enforce this chapter.
(b) Expenses incurred by the office of the attorney general underthis section shall be paid from the auctioneer recovery fund.
As added by P.L.256-1987, SEC.4.