Indiana Auctioneer Recovery Fund

Indiana Statutes
Title 25. PROFESSIONS AND OCCUPATIONS
Article 6.1. AUCTIONEERS AND AUCTIONS
Chapter 8. AUCTIONEER RECOVERY FUND

§ 25-6.1-8-1. Establishment of fund; administration; investments

(a)    The auctioneer recovery fund is established for the purpose set out in this chapter. The fund shall be administered by the auctioneer commission.
(b)    The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the fund.
(c)    Money in the fund at the end of a fiscal year does not revert to the state general fund, except as provided in section 2.1 of this chapter.

Cite as IC 25-6.1-8-1

Sec. 2. (a) If the total amount in the auctioneer recovery fund (including principal and interest) is less than three hundred sixty thousand dollars ($360,000) on June 30 in an odd-numbered year after the payment of all claims and expenses, the auctioneer commission shall assess a surcharge according to the following formula in order to maintain the fund at an approximate level of four hundred thousand dollars ($400,000):STEP ONE: Determine the amount remaining in the fund on June 30 of the current year after all expenses and claims have been paid.STEP TWO: Subtract the amount determined under STEP ONE from four hundred thousand dollars ($400,000).STEP THREE: Determine the number of licensees who had licenses in effect on June 30 of the current year.STEP FOUR: Divide the number determined under STEP TWO by the number determined under STEP THREE.(b) The auctioneer commission shall assess the surcharge described in subsection (a) against each licensee who:(1) receives an initial license; or(2) receives a renewal license.(c) The auctioneer commission shall assess the surcharge described in subsection (a) for the two (2) year period beginning on July 1 of the current year through June 30 of the next odd-numbered year.(d) The surcharge assessed under this section is in addition to any other fee under this article.

Ind. Code  § 25-6.1-8-2 
§ 25-6.1-8-2.1. Reversion of excess funds

If the total amount in the auctioneer recovery fund (including principal and interest) exceeds five hundred fifty thousand dollars ($550,000) at the end of a state fiscal year after the payment of all claims and expenses, the amount in excess of five hundred fifty thousand dollars ($550,000) reverts to the state general fund.

Cite as IC 25-6.1-8-2.1

§ 25-6.1-8-3. Interest credited; payment of expenses

Any interest earned on investment of money in the auctioneer recovery fund shall be credited at least annually to the fund. No money may be appropriated from the state general fund for payment of any expenses incurred under this chapter, and none of these expenses may be charged against the state.

Cite as IC 25-6.1-8-3

§ 25-6.1-8-4. Claims against fund; applications; amount of loss; limitation on recovery

(a)    If any aggrieved person obtains a final judgment in any court against any licensee to recover damages for failure to meet the obligations of a licensee under this article and the rules adopted under this article (with or without findings by the auctioneer commission) that results in an actual cash loss to the aggrieved person, the person may, upon termination of all proceedings including appeals and proceedings supplemental to judgment for collection purposes, file a verified application with the commission for an order directing payment out of the auctioneer recovery fund of the amount of actual and direct loss in the transaction that remains unpaid upon the judgment. The amount of actual and direct loss may include court costs but may not include attorney's fees or punitive damages awarded. The amount that may be paid from the auctioneer recovery fund may not exceed twenty thousand dollars ($20,000) per judgment and an aggregate lifetime limit of fifty thousand dollars ($50,000) with respect to any one (1) licensee.
(b)    This section applies only to a final judgment that awards damages for an act by the licensee described in subsection (a) that arises 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.

Cite as IC 25-6.1-8-4

§ 25-6.1-8-5. Claims against single licensee in excess of dollar limitation; joinder of claims; payment; insufficient funds

(a)    If the payment in full of two (2) or more pending valid claims that have been filed by aggrieved persons against a single licensee would exceed the fifty thousand dollar ($50,000) limit set forth in section 4 of this chapter, the fifty thousand dollars ($50,000) shall be distributed among the aggrieved persons in the ratio that their respective claims bear to the aggregate of all valid claims or in any other manner that the commission may determine equitable. This money shall be distributed among the persons entitled to share in it without regard to the order of priority in which their respective judgments have been obtained or their claims have been filed.
(b)    The commission shall consider pending applications filed by all claimants and prospective claimants against one (1) licensee jointly to the end that the respective rights of all the claimants to the commission may be equitably adjudicated and settled.
(c)    On June 30 and December 31 of each year, the auctioneer commission shall identify each claim that the commission orders to be paid during the six (6) month period that ended on that day. The commission shall pay the part of each claim that is so identified within fifteen (15) days after the end of the six (6) month period in which the claim is ordered paid. However, if the balance in the fund is insufficient to pay the full payable amount of each claim that is ordered to be paid during a six (6) month period, the commission shall pay a prorated portion of each claim that is ordered to be paid during the period. Any part of the payable amount of a claim left unpaid due to the prorating of payments under this subsection must be paid (subject to the fifty thousand dollar ($50,000) limit described in section 4 of this chapter) before the payment of claims ordered to be paid during the following six (6) month period.

Cite as IC 25-6.1-8-5

25-6.1-8-6 Agents for service of process

Sec. 6. Any auctioneer or auction company that is licensed or renews a license under this article after December 31, 1987, and upon whom personal service cannot be made with reasonable diligence shall be considered to have appointed the commission as the licensee's agent for service of process for purposes of actions filed under section 4 of this chapter for recovery from the auctioneer recovery fund. Service of process under this section shall be made as nearly as practicable in the manner prescribed by the Indiana Rules of Trial Procedure for service on corporations.

Ind. Code  § 25-6.1-8-6 

§ 25-6.1-8-7. Limitation of actions; notice of commencement of action

An order for payment from the auctioneer recovery fund may not be issued unless the action to recover from the auctioneer recovery fund was commenced within one (1) year after the termination of all proceedings against the licensee for failure to meet the obligations of a licensee under this article and the rules adopted under this article, including appeals and proceedings supplemental to judgment. When any person commences an action for a judgment that may result in an order for payment from the fund, the person shall notify the commission in writing of the commencement of the action.

Cite as IC 25-6.1-8-7

§ 25-6.1-8-8. Commission as defendant; hearings; order of payment of claim

(a)    When any person files an application for an order directing payment from the auctioneer recovery fund, the commission shall promptly review and consider the application, and it may issue an order directing payment out of the auctioneer recovery fund, as provided in section 9 of this chapter, subject to the limitation of section 4 of this chapter, if the commission finds:
(1)    that there is no collusion between the judgment creditor and the judgment debtor;
(2)    that the judgment creditor is making application not more than one (1) year after the termination of all proceedings in connection with the judgment, including appeals and proceedings supplemental to judgment for collection purposes;
(3)    that the judgment creditor has diligently pursued all available creditor's remedies, including proceedings supplemental, against the licensee who is the subject of the application filed under section 4 of this chapter, against all the judgment debtors, and against all other persons liable to the creditor in the transaction for which the creditor seeks recovery from the auctioneer recovery fund, but that the diligent pursuit did not result in satisfaction of the judgment;
(4)    that the failure to meet the obligations of a licensee under this article and the rules adopted under this article arose directly out of a transaction that occurred when the judgment debtor was licensed and acted in a capacity for which a license is required under this article and that the transaction occurred after December 31, 1987; and
(5)    that, in the event of a default judgment or a judgment entered upon stipulation of the parties, the judgment debtor's acts constituted failure to meet the obligations of a licensee under this article and the rules adopted under this article.
(b)    A person who is dissatisfied by:
(1)    an order issued under subsection (a) directing payment out of the auctioneer recovery fund; or
(2)    a denial of an application filed under section 4 of this chapter; may petition for review under IC 4-21.5-3-7.

Cite as IC 25-6.1-8-8

§ 25-6.1-8-9. Payment of claim

Upon an order of the commission directing that payment be made out of the auctioneer recovery fund, the commission shall, subject to sections 4 through 5 of this chapter, make the payment out of the auctioneer recovery fund as provided in section 5 of this chapter.

Cite as IC 25-6.1-8-9
   
§ 25-6.1-8-11. Subrogation

When the commission has ordered and caused payment to be made from the auctioneer recovery fund to a judgment creditor, the commission is subrogated to the rights of the judgment creditor with respect to the amount paid.

Cite as IC 25-6.1-8-11

25-6.1-8-12 Expenditure of interest.

Sec. 12. Subject to the approval of the state budget agency, the auctioneer commission may expend the interest earned by the auctioneer recovery fund for:
(1) information concerning the commission's activities and administrative rulings;
(2) other educational information concerning the practice of auctioneering; and
(3) expenses related to the continuing education program.

§ 25-6.1-8-13. Attorney general; assistance to commission; expenses

(a)    The office of the attorney general shall provide the staff assistance necessary to:
(1)    enable the auctioneer commission to perform its duties under this chapter; and
(2)    enforce this chapter.
(b)    Expenses incurred by the office of the attorney general under this section shall be paid from the auctioneer recovery fund.

Cite as IC 25-6.1-8-13