(a)     Requirements of the Application, Affidavit and Order. Authority to employ a professional shall be sought by presentation of an application, affidavit and proposed order.

                    (1)     Application. An order approving the employment of a professional person pursuant to 11 U.S.C. 327 shall be made only on application by the trustee, debtor in possession or committee. The original application, plus two copies, shall be filed with the court. The application shall fully disclose the reason the professional should be hired, the professional services to be rendered, the proposed terms and conditions of employment including any arrangement for a retainer, the source of any retainer, the hourly rates for professionals and paraprofessionals, any contingent fee arrangement and all of the professional's connections with the debtor or any party in interest, including disclosure of the terms of any guaranty agreement with respect to payment of the professional's fee by a third party. A copy of any written retainer agreement, and of any written guaranty agreement, shall be filed with, and appended to, each copy of the application.

                    (2)     Affidavit. The application shall be accompanied by an affidavit of the professional, setting forth any facts which might reasonably lead to the conclusion that the professional may not be disinterested or may hold an interest adverse to the debtor as defined in 11 U.S.C. 101(14).

                    (3)     Order. The order of appointment shall clearly state that no fees will be paid to the professional, including the use of any retainer received for postpetition services without prior approval of the court.

          (b)     Auctioneers. In addition to the requirements of subsection (a)(1) of this rule, an application seeking an order of appointment of an auctioneer shall:

                    (1)     set forth in the application that the auctioneer is duly licensed, the license number and the place of the auctioneer's business;

                    (2)     provide a copy of the surety bond referred to in Local Bankruptcy Rule 6005-1(c) intended to cover the assets of the estate; and

                    (3)     where a blanket bond has been approved by the United States trustee and is on file with the court, shall disclose whether or not the applicant has been appointed as auctioneer in any other case, including case name(s) and case number(s) thereof, and set forth whether or not the applicant has or will, within a reasonable period of time, come into possession of property of any other estate in which the applicant has been appointed auctioneer, together with a reasonable estimation of the value of all such property.
 
 

          This rule is intended to supplement FRBP 2014(a), and information required by this rule must be submitted contemporaneous with the information required therein. As required by Local Bankruptcy Rule 9034-1, the United States trustee must be served with a copy of the application and proposed order. FRBP 5002 sets forth certain restrictions applicable to professional appointments. Debtor's counsel must comply with the continuing disclosure requirements of FRBP 2016(b).

          The amendment to subsection (a)(1) requiring filing with the court conforms the practice in the Albany and Utica divisions. The clerk will forward a copy of the application to the United States trustee.

          Subsection (a)(3) requires that the proposed order approving the appointment make clear the necessity of obtaining court approval before any fees for postpetition services are paid. This includes the application of any prepetition retainer received to cover postpetition services.

          When an application for employment is approved by the court, the appointment may be deemed effective as of the date of the initial receipt of the application by the court, or by office of the United States trustee, as provided by FRBP 5005(c).