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Indiana Auctioneer Exam Study Guide 100%
Verified.
Absolute Auction - Answer✔also known as a no-reserve auction, it is an auction in which there
is no reserve or restriction on price. Goods cannot be withdrawn once bidding is opened
UNLESS no bid is made within a reasonable time.
Reserve Auction - Answer✔an auction in which a seller reserves the right to accept or reject the
highest bid within a predetermined time. ALL AUCTIONS ARE WITH RESERVE UNLESS
OTHERWISE STATED. Auctioneers can withdraw goods at any time until the completion of the
sale. Auctioneer can bid on behalf of the seller up to amount of reserve price.
trust or escrow account - Answer✔Must be a separate account from the auctioneer's personal
bank account, used for all funds belonging to others. Deposits must be within 48 hours or the
next business day
Recovery Fund - Answer✔maintained by the Auction Committee, requirements for payment
out of the fund, required amounts in the fund
Escrow account violations - Answer✔commingling of funds, using or borrowing from the
account, inadequate records for account activity, and not having an escrow account
Auction licenses - Answer✔Auction houses need their own license, need auctioneer license,
Chapter 7 Bankruptcy - Answer✔LIQUIDATION. debtor unable/unwilling to pay debt. All non-
exempt property is lost to creditors, discharge of debts given quickly, not discharged-taxes,
education, fraud, fines, damages. May file at beginning of every seventh year
Chapter 13 Bankruptcy - Answer✔RE-ORGANIZATION. Debtor desires to repay creditors, must
have regular income for repayment plan, able to keep property if debt cured in reasonable
time, discharge at end of plan, not discharged- support and long term secured debt
Chapter 12 Bankruptcy - Answer✔FARMS
Chapter 11 Bankruptcy - Answer✔BUSINESS reorganization.
1
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The bankruptcy court system - Answer✔district court with 13 region (they handle appeals from
bankruptcy court,) U.S. Trustee program. The goal of the Bankruptcy court is to maximize
return for unsecured creditors
secure creditors - Answer✔The secured creditor holds priority on debt collection from the
property on which it holds a lien, backed by collateral. Creditors must be notified within 45 days
before the auction date.
unsecure creditors - Answer✔The unsecured creditor gets no such protection; its best method
of repayment from its debtor is voluntary repayment. Somebody that lends money out without
collateral
Bankruptcy advertising requirements - Answer✔must notify the creditors of sale date at least
20 days prior, leased equipment-what can be sold, lease purchase,
Bankruptcy proceeds - Answer✔must go to trustee and list accounts receivable
Problems with bankruptcy auctions - Answer✔debts exceed property, threat of lawsuit,
retained rights, transfers to insiders.
Zoning Codes - Answer✔Dictate the types of businesses and buildings allowed in specific
geographic areas
Tie bids - Answer✔open up bidding to only those two bidders only, not the whole crowd
Types of licenses - Answer✔auctioneer (individual,) auction house license, auction company or
business, apprentice, real estate sales,
Record Keeping - Answer✔Auction companies must keep their records (written contracts) for a
period of two years from the date of the auction.
Contracts - Answer✔must be in writing to be enforceable (only under the statute of frauds,)
should have time limitations, and must be communicated to the offeree. Signee must be of
legal age, must be mentally competent, and must not be intoxicated or under the influence.
Required notices to the auctioneer commission - Answer✔address change
Does a sign of the auctioneer's license number need to be visible in the auction house? -
Answer✔True
How much can be taken out of the auctioneer recovery fund? - Answer✔No more than $20,000
per judgement and $50,000 per lifetime.
Secured Claims - Answer✔Creditors obtain property if debt is not paid
Unsecured Claims - Answer✔Debts not tied to any property of the debtor
Priority Claims - Answer✔Special creditors paid first in bankruptcy (wages, rent, taxes)
2
Indiana Auctioneer Exam Study Guide 100%
Verified.
Absolute Auction - Answer✔also known as a no-reserve auction, it is an auction in which there
is no reserve or restriction on price. Goods cannot be withdrawn once bidding is opened
UNLESS no bid is made within a reasonable time.
Reserve Auction - Answer✔an auction in which a seller reserves the right to accept or reject the
highest bid within a predetermined time. ALL AUCTIONS ARE WITH RESERVE UNLESS
OTHERWISE STATED. Auctioneers can withdraw goods at any time until the completion of the
sale. Auctioneer can bid on behalf of the seller up to amount of reserve price.
trust or escrow account - Answer✔Must be a separate account from the auctioneer's personal
bank account, used for all funds belonging to others. Deposits must be within 48 hours or the
next business day
Recovery Fund - Answer✔maintained by the Auction Committee, requirements for payment
out of the fund, required amounts in the fund
Escrow account violations - Answer✔commingling of funds, using or borrowing from the
account, inadequate records for account activity, and not having an escrow account
Auction licenses - Answer✔Auction houses need their own license, need auctioneer license,
Chapter 7 Bankruptcy - Answer✔LIQUIDATION. debtor unable/unwilling to pay debt. All non-
exempt property is lost to creditors, discharge of debts given quickly, not discharged-taxes,
education, fraud, fines, damages. May file at beginning of every seventh year
Chapter 13 Bankruptcy - Answer✔RE-ORGANIZATION. Debtor desires to repay creditors, must
have regular income for repayment plan, able to keep property if debt cured in reasonable
time, discharge at end of plan, not discharged- support and long term secured debt
Chapter 12 Bankruptcy - Answer✔FARMS
Chapter 11 Bankruptcy - Answer✔BUSINESS reorganization.
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:08PM.
The bankruptcy court system - Answer✔district court with 13 region (they handle appeals from
bankruptcy court,) U.S. Trustee program. The goal of the Bankruptcy court is to maximize
return for unsecured creditors
secure creditors - Answer✔The secured creditor holds priority on debt collection from the
property on which it holds a lien, backed by collateral. Creditors must be notified within 45 days
before the auction date.
unsecure creditors - Answer✔The unsecured creditor gets no such protection; its best method
of repayment from its debtor is voluntary repayment. Somebody that lends money out without
collateral
Bankruptcy advertising requirements - Answer✔must notify the creditors of sale date at least
20 days prior, leased equipment-what can be sold, lease purchase,
Bankruptcy proceeds - Answer✔must go to trustee and list accounts receivable
Problems with bankruptcy auctions - Answer✔debts exceed property, threat of lawsuit,
retained rights, transfers to insiders.
Zoning Codes - Answer✔Dictate the types of businesses and buildings allowed in specific
geographic areas
Tie bids - Answer✔open up bidding to only those two bidders only, not the whole crowd
Types of licenses - Answer✔auctioneer (individual,) auction house license, auction company or
business, apprentice, real estate sales,
Record Keeping - Answer✔Auction companies must keep their records (written contracts) for a
period of two years from the date of the auction.
Contracts - Answer✔must be in writing to be enforceable (only under the statute of frauds,)
should have time limitations, and must be communicated to the offeree. Signee must be of
legal age, must be mentally competent, and must not be intoxicated or under the influence.
Required notices to the auctioneer commission - Answer✔address change
Does a sign of the auctioneer's license number need to be visible in the auction house? -
Answer✔True
How much can be taken out of the auctioneer recovery fund? - Answer✔No more than $20,000
per judgement and $50,000 per lifetime.
Secured Claims - Answer✔Creditors obtain property if debt is not paid
Unsecured Claims - Answer✔Debts not tied to any property of the debtor
Priority Claims - Answer✔Special creditors paid first in bankruptcy (wages, rent, taxes)
2
