We report temperature dependent resistivity, specific heat, magnetic susceptibility and thermoelectric power measurements made on the heavy fermion system YbNi2B2C, for both as grown and annealed single crystals. Our results demonstrate a significant variation in the temperature dependent electrical resistivity and thermoelectric power between as grown crystals and crystals that have undergone optimal (150 hour, 950• C) annealing, whereas the thermodynamic properties: (cp(T ) and χ(T )) remain almost unchanged. We interpret these results in terms of redistributions of local Kondo temperatures associated with ligandal disorder for a small (∼ 1%) fraction of the Yb sites.PACS numbers: 74.70. Dd,75.30.Mb,72.15.Qm Among the rich variety of physical phenomena displayed by the RNi 2 B 2 C nickel boro-carbide family 1,2,3,4 , YbNi 2 B 2 C (Yb-1221) is unique so far in its behavior as a heavy fermion system 5,6 with an electronic specific heat coefficient, γ ≈ 500mJ/molK 2 , and a Kondo temperature, T K ≈ 10K: a temperature scale that is conveniently isolated from other characteristic temperatures such as superconducting or magnetic condensates (T c , T N < 0.03K, if they exist at all), and crystal electric field splitting (T cef ≈ 100K) 7,8 . The heavy fermion behavior is understood as a consequence of the fact that the ytterbium 4f levels easily hybridize with the electronic conduction band levels near the Fermi surface. Such heavy electron systems often display many unusual physical properties 9 , one common example being disorderrelated variation in the behavior of different samples of the same compound 9,10 .Recently the effects of annealing on the electrical resistivity of R-1221 single crystals (R = Y, Gd-Lu) were studied 11 , and once again Yb-1221 showed anomalous properties in comparison to other members of the series. Whereas annealing of crystals with R = Y, Lu, Tm-Gd simply leads only to changes in the residual resistivity, radical changes in R(T ) behavior were observed for Yb-1221 over the full (2K − 300K) temperature range. The change in R(T ) was so dramatic that comparison of normalized resistance curves R(T )/R(300) became highly questionable.To overcome this problem and better understand what is happening to the Yb-1221 crystals as they go through annealing processes, in the present work careful resistivity measurements were made on Yb-1221 crystals cut into well-defined geometries, such that no normalization is necessary and direct comparison of ρ(T ) for different samples and annealing procedures is possible. The results, in combination with measurements of specific heat, magnetic susceptibility and thermoelectric power, allow us to propose a mechanism in which optimal annealing is essentially affecting the ligandal disorder associated with a small fraction (∼ 1%) of the Yb sites. But given that Yb is a hybridizing rare earth ion, it is far more sensitive to such disorder than its non-hybridizing neighbors. Yb-1221 then presents a model heavy fermion system that allows for the study of how small...