§ 85B-4.2. Grounds for payment; notice and application to Commission. - North Carolina Statutes

§85B‑4.2.  Grounds for payment; notice and application to Commission.

An aggrieved person who hassuffered a monetary loss as a direct result of the conversion of funds orproperty or other fraudulent act or conduct by a licensed auctioneer,apprentice auctioneer, or auction firm shall be eligible to seek compensationfrom the Fund subject to the limitations of this Chapter and the amount of losswhich is otherwise unrecoverable provided that:

(1)        The aggrieved personhas sued the licensee in a court of competent jurisdiction and has filed withthe Commission written notice of such lawsuit within 60 days after itscommencement unless the total loss claimed excluding attorneys' fees is lessthan two thousand five hundred dollars ($2,500), in which case the notice maybe filed within 90 days after the termination of all judicial proceedings,including appeals;

(2)        The aggrieved personhas obtained final judgment in a court of competent jurisdiction against thelicensee based upon conversion or other fraudulent conduct arising out of atransaction which occurred when the licensee was licensed by the Commission andwas acting in a capacity for which a North Carolina license is required, whichjudgment shall show the amount owed the aggrieved person;

(3)        The aggrieved personwas not engaged in any act or conduct for which an auctioneer license isrequired and was not acting in violation of any of the laws of the State ofNorth Carolina or of the United States; and

(4)        Execution on thejudgment has been issued and has been returned unsatisfied in whole or in part.

Upon the termination of alljudicial proceedings including appeals, and for a period of one yearthereafter, a person eligible for recovery may file a verified application withthe Commission for payment out of the Fund of the amount remaining unpaid uponthe judgment which represents the actual and direct loss sustained by reason ofconversion or other fraudulent conduct. A certified copy of the judgment andreturn of execution shall be attached to the application and filed with theCommission. The applicant shall serve upon the judgment debtor a copy of theapplication and shall file with the Commission an affidavit or certificate ofservice, in accordance with the procedures specified by rule by the Commission.(1983, c. 603, s. 2; 1989, c. 732, s. 3; 1991 (Reg. Sess., 1992), c.819, s. 6.)