Pre Sale -2 The Judge Heller memorandums: Disclosure

• (i) Attorneys and trustees shall have written agreements with licensed auctioneers providing for the amount of auctioneers’ commissions on third party sales, lender buy-ins and cancelled sales, outlining the advertising services to be performed by the auctioneers, e.g., any commissions paid by newspapers if payment is made within a specific number of days from being billed. Agreements may be blanket agreements or on a case-by-case basis.

• (ii) Auctioneers shall forward invoices from newspapers for publication of notices or advertisements to trustees and attorneys as soon as received from the newspapers. Such invoices shall be included with the vouchers supplied to the auditor stating the account.

• (iii) Any compensation which an auctioneer has received or is entitled to receive either as a commission or discount from a newspaper shall be prominently disclosed on the auctioneer’s invoice substantially as follows: “The auctioneer has received a commission or discount of $___________ on the advertising for the sale in consideration of advertising, payment and collection services.”

• (iv) Auditors shall indicate next to the advertising cost, on the account that is filed with their report, the following, if appropriate: *includes service commission to auctioneer.

• (v) Auditors shall allow in the audit the stated amount invoiced by the auctioneer to the trustee or attorney, provided the auctioneer’s invoice is prepared in accordance with item (iii) above, and is otherwise reasonable and in accordance with charges allowed by Art. 2, §11 of Baltimore City Code (1976 ed., 1983 Repl. Vol.). The auctioneer’s invoice shall be filed by the auditor with the audit.