Indiana has the nation’s second-largest automotive industry and is leading the U.S. in manufacturing job growth. According to the Indiana Economic Development Corporation, one in five Hoosiers work in advanced manufacturing. Knowing these facts is an indicator that this state is a good place to nourish an auction company. See how they implement their auction laws here.
Every individual, before acting as an auctioneer, must obtain a license from the commission. An applicant for a license must be at least eighteen years of age and have completed at least eighty (80) actual hours of auction instruction from a course provider approved by the commission.
Must not have a conviction for an act which would constitute a ground for disciplinary sanction or a felony that has a direct bearing on the applicant’s ability to practice competently. An individual seeking an initial license as an auctioneer under this article shall file with the commission a completed application on the form prescribed by the commission. When filing an application for an auctioneer license, each individual shall pay a nonrefundable examination fee established by the commission
Auction House Licensing
Every person, before operating an auction house, must obtain a license from the commission for that auction house. Before applying for a license from the commission to operate an auction house, the following must obtain a license as an auctioneer.
Every applicant seeking to operate an auction house shall file with the commission a completed application on a form provided by the commission for a license for each auction house to be operated by that person. Each application shall be accompanied by the license fee.
Upon the receipt of a completed application for an initial or a renewal license, the commission shall examine the application and may verify the information contained therein. If the commission determines that the application has been completed and that the statements made therein by the applicant are true, the commission shall issue a license, in such form as it may prescribe, for such auction house.
Cease and Desist Order
When the commission determines that a person not licensed under this article is engaged in or is believed to be engaged in activities for which a license is required under this article, the commission may issue an order to that person requiring him to show cause why he should not be ordered to cease and desist from such activities. The show cause order shall set forth a time and place for a hearing at which the affected person may appear and show cause as to why he should not be subject to licensing under this article.
If the commission, after a hearing, determines that the activities in which the person is engaged are subject to licensing under this article, the commission may issue a cease and desist order which shall describe the person and activities which are the subject of the order. A cease and desist order issued under this section shall be enforceable in the circuit courts of this state.
Records and Accounts
Each licensee shall keep and maintain in a place of safety for a period of not less than two (2) years complete and correct records and accounts pertaining to that licensee’s licensed activity, including the name and address of the owner or consignor of all goods and real estate involved in such activities, a description of such goods and real estate, the terms and conditions of the acceptance and sale of such goods and real estate, and accounts of all monies received and paid out, whether on the licensee’s own behalf or as agent, as a result of such activities.
Except with respect to goods sold through an auction house, no licensee shall sell goods or real estate at auction until the auctioneer or auction company involved has first entered into a written contract with the owner or consignor of such goods or real estate, which contract sets forth the terms and conditions upon which such auctioneer or auction company accepts the goods or real estate for sale. A copy of every written contract shall be retained for a period of two (2) years from the date of the auction.
Each licensee shall keep in one or more trust accounts (interest or noninterest bearing) all funds belonging to others that come into the possession of the licensee and are held by the licensee for more than twenty-four hours after the funds become available for use by the licensee; and shall clearly identify any account containing those funds as a trust account. The trust accounts shall contain all auction proceeds not yet disbursed and all other funds belonging to others.
The licensee shall not use any trust account for the deposit of any personal funds or other business funds and shall keep a detailed record of the funds and any interest accrued in each trust account that identifies the amount of funds held for each beneficiary. Any interest earned shall be held for the beneficiary. Upon the death or termination of a licensee or the expiration or revocation of the licensee’s license, the commission shall take custody of each trust account and may appoint a successor trustee to protect and distribute the proceeds of that account.
Performance by Auctioneer
In performing the duties of an auctioneer, every auctioneer shall follow all reasonable requests of the owner or consignor of the goods or real estate being sold at the auction, shall perform his duties so that the highest or most favorable offer made by a member of his audience is accepted, and shall otherwise perform his duties in accordance with the highest standards of the auctioneering profession.
Every licensee, within thirty days after the sale transaction, shall account to, or see to an accounting for, those persons who own or who are acting as consignor of goods or real estate which is the subject of an auction engaged in or conducted by such licensee or upon such licensee’s premises.
Every licensee, within thirty days after a sale transaction of goods shall pay over, or see to the paying over of, all monies and proceeds due to the owner or the consignor of goods or real estate which was the subject of an auction engaged in or conducted by such licensee or upon such licensee’s premises.