CLERK'S USE OF OUTSIDE SERVICES AND AGENTS; CLAIMS AND NOTICING AGENTS – Amended December 1, 2016

(a)       The Court may direct, subject to the supervision of the Clerk, the use of agents either on or off the Court's premises to file Court records, either by paper or electronic means, to issue notices, to maintain case dockets, to maintain Judges' calendars, and to maintain and disseminate other administrative information where the costs of such facilities or services are paid for by the estate.

(b)       Estate Retention of Claims and Noticing Agent

(1)        In a case in which the number of creditors and equity security holders, in the aggregate, is 250 or more, the estate shall retain, subject to approval of the Court, a claims and noticing agent in accordance with the Protocol for the Employment of Claims And Noticing Agents under 28 U.S.C. §156(c), which shall be available on the Court’s website (http://www.nysb.uscourts.gov/sites/default/files/pdf/newClaimsAgentsProtocol.pdf).

(2)       With court approval, the estate may retain a claims and noticing agent in accordance with such protocol in a case in which the number of creditors and equity security holders, in the aggregate, is less than 250. 

(3)       The costs of services provided by such agent must be paid by the estate.  When the case is closed, the claims and noticing agent must deliver to the Clerk a copy of the claims register.

(c)       Upon request of the Clerk, the agent shall provide a copy of all electronic records maintained by the agent to the Clerk and shall provide public access to the Claims Registers, including complete proofs of claim with attachments, if any, without charge.

(d)       The order providing for the retention of an agent under this rule shall provide for (i) the discharge of the agent at the conclusion of the case, or as otherwise provided by entry of an additional order by the Court, and (ii) the disposition of any records, documents and the like, that have been provided or delivered to such agent, whether in paper or electronic form in accordance with the Protocol for the Employment of Claims Agents.

Comment

            This rule complements 28 U.S.C.  §156(c).  Pursuant to the guidelines of the Judicial Conference of the United States, the Clerk is responsible for the security and integrity of all Court records.

            This rule was amended in 2013 to add as new subdivision (b) the provisions of General Order M-409, relating to the use of claims and noticing agents, and to state in the rule the link to the Court’s website where practitioners may access the governing protocols.  The substance of former subdivision (b) has been deleted.  The Clerk does not maintain duplicate electronic records of the claims register held by the claims and noticing agent.  Such claims register is delivered to the Clerk upon the closing of the case.  General Order M-409 was abrogated and replaced by this local rule in 2013.

            Subsection (b) of this rule was stylistically revised in 2016.  No substantive change was intended.

Subsection (c) of this rule was amended and subsection (d) was added in 2016 to require open access to claims registries in accordance with existing requirements and Clerk’s Office procedures, as well as section 107 of the Bankruptcy Code and Bankruptcy Rules 3002(b) and 5005(a).