§4358. Online auction companies

            A. The sheriff may, in accordance with law, engage an auction company to perform an online auction pursuant to Code of Civil Procedure Article 2344, but the sheriff remains responsible for the performance or nonperformance of the duties delegated to that company. The sheriff shall not delegate the duties to serve notices required by law, to receive and obtain appraisals of the property, to determine the amount of the minimum bid required by law, to ascertain the existence of superior encumbrances, to release inferior encumbrances, to file the proces verbal of the sale or the act of sale in favor of the purchaser, or to distribute the proceeds of the sale.

            B. The agreement between the sheriff and the auction company shall provide for the payment to the auction company of a fixed fee, which shall be taxed as costs of the sale, in an agreed amount not exceeding three hundred seventy-five dollars per adjudication.

            C. Upon motion of the sheriff or either of the parties, the court may, in a specific case having exceptional circumstances and after a hearing, authorize a fee in excess of that provided in Subsection B of this Section.

            D. The auction company conducting the sale shall not be entitled to any fee or compensation other than the fee authorized by this Section, and the auction company shall not be entitled to reimbursement of any expenses incurred in connection with the sale. Any contrary stipulation shall be absolutely null.

            E. Any stipulation by which the auction company agrees to share any portion of its fee with the sheriff or otherwise provide a financial benefit of any nature to the sheriff shall be absolutely null.

            F. The contract by which the sheriff engages an auction company to conduct an online auction under this Section shall contain such requirements as the sheriff may impose concerning data security and liability insurance. If the auction company will receive funds from bidders, other than fees earned by the auction company under this Section, the contract shall require the auction company to furnish a fidelity bond in an amount deemed appropriate by the sheriff.

            G. The auction company shall segregate any funds received from bidders, other than fees earned by the auction company under this Section, from funds of the auction company and shall hold the funds received in a separate escrow, trust, or similar transaction settlement bank account holding funds as restricted cash separate from the general funds of the auction company. The auction company may use this account to conduct settlements, in which case the internet-based platform may collect bidder funds from sales into this account and then settle the transaction.

            Acts 2023, No. 390, §2.