§ 85B-7.1. Handling clients' funds. - North Carolina Statutes

§ 85B‑7.1.  Handlingclients' funds.

(a)        Each licensee whodoes not disburse all funds to the seller on auction day shall maintain a trustor escrow account and shall deposit in the account all funds that are receivedfor the benefit of another person and are not disbursed to the seller onauction day. The licensee shall deposit funds that are not disbursed on auctionday with an insured bank or savings and loan association located in NorthCarolina. At or before the time of all final settlements, the auctioneer shallprovide the seller or consignor with a settlement statement, which includes adescription of all goods sold, the selling price of the goods sold, the netproceeds due to the seller or consignor, the name and address of the personreceiving the disbursement, and the amount of the disbursement. All settlementstatements shall be signed by the licensee or the licensee's agent and by theperson receiving the disbursement.

(b)        Each licensee shallmaintain, for not less than five years, complete records showing the deposit,maintenance, and withdrawal of trust or escrow funds and the disbursement offunds on auction day. Records of the disbursement of funds on auction day shallinclude a copy of each receipt or settlement statement issued when the fundswere disbursed. The Commission or its designated agent may inspect theserecords periodically, without prior notice, and may also inspect these recordswhenever the Commission determines that they are pertinent to an investigationof any specific complaint against a licensee. (1991 (Reg. Sess., 1992), c. 819, s. 20; 1993, c. 421,s. 2; 2005‑330, s. 6.)