201 KAR 3:045. Recordkeeping and accounting.

 

      RELATES TO: KRS 330.110(5)

      STATUTORY AUTHORITY: KRS 330.050(8)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 330.050(8) authorizes the Board of Auctioneers to promulgate administrative regulations concerning recordkeeping and accounting. This administrative regulation establishes requirements to protect the public through adequate recordkeeping and accounting.

 

      Section 1. Proceeds of a personal property auction not disbursed to the owner on auction day shall be deposited in an auction escrow account by the auctioneer or auction firm no later than three (3) banking days following the date of auction or sale of the goods, whichever occurs first.

 

      Section 2. Auctioneers and auction firms shall use federally insured depositories in the Commonwealth of Kentucky.

 

      Section 3. Proceeds due from the sale of goods, other than real property, shall be disbursed to the owner no later than thirty (30) days after the date of each auction.

 

      Section 4. Funds from a real estate auction shall be held in escrow until settlement in accordance with the agreement of sale.

 

      Section 5. If the owner’s goods are not sold in a single auction, proceeds due shall be disbursed to the owner within thirty (30) days after each auction for goods, other than real property, or in accordance with the agreement of sale for the sale of real property. Notice shall be given to the owner of the tentative date of auction of the remaining goods.

 

      Section 6. The auction escrow account shall be used solely for the preservation and guarantee of auction proceeds until disbursed at settlement. Funds for any other purpose shall not be commingled with the auction escrow account. Moneys due to the auctioneer or auction firm shall not be withdrawn from the auction escrow account until final settlement is made with the owner.

 

      Section 7. Auction records, including lists of buyers and their addresses, and clerk sheets showing the items sold including the buyers' numbers or names and the selling prices, and the final settlement papers, shall be retained for a period of five (5) years from the date of settlement. These business records shall be available for inspection by the board or its designees. (5 Ky.R. 695; eff. 6-6-79; 37 Ky.R. 2891; 38 Ky.R 736; eff. 11-4-11.)