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PAG LIN
1 1 Amend House File 2500 as follows:
1 2 #1. Page 1, by inserting after line 28 the
1 3 following:
1 4 "Sec. . NEW SECTION. 633.800 SHORT TITLE –
1 5 RULES OF CONSTRUCTION.
1 6 1. This division shall be known and may be cited
1 7 as the uniform transfer on death security registration
1 8 Act.
1 9 2. The provisions of this division shall be
1 10 liberally construed and applied to promote its
1 11 underlying purposes and policy and to make uniform the
1 12 laws with respect to the subject of its provisions
1 13 among states enacting this uniform Act.
1 14 3. Unless displaced by the particular provisions
1 15 of this division, the principles of law and equity
1 16 supplement the provisions of this division.
1 17 Sec. . NEW SECTION. 633.801 DEFINITIONS.
1 18 As used in this division, unless the context
1 19 otherwise requires:
1 20 1. "Beneficiary form" means a registration of a
1 21 security which indicates the present owner of the
1 22 security and the intention of the owner regarding the
1 23 person who will become the owner of the security upon
1 24 the death of the owner.
1 25 2. "Devisee" means any person designated in a will
1 26 to receive a disposition of real or personal property.
1 27 3. "Heir" means a person, including the surviving
1 28 spouse, who is entitled under the statutes of
1 29 intestate succession to the property of a decedent.
1 30 4. "Register" means to issue a certificate showing
1 31 the ownership of a certificated security or, in the
1 32 case of an uncertificated security, to initiate or
1 33 transfer an account showing ownership of the security.
1 34 5. "Registering entity" means a person who
1 35 originates or transfers a security title by
1 36 registration, including a broker maintaining security
1 37 accounts for customers and a transfer agent or other
1 38 person acting for or as an issuer of securities.
1 39 6. "Security" means a share, participation, or
1 40 other interest in property, in a business, or in an
1 41 obligation of an enterprise or other issuer, including
1 42 a certificated security, an uncertificated security,
1 43 and a security account.
1 44 7. "Security account" means either of the
1 45 following:
1 46 a. Any of the following:
1 47 (1) A reinvestment account associated with a
1 48 security.
1 49 (2) A securities account with a broker.
1 50 (3) A cash balance in a brokerage account.
2 1 (4) Cash, interest, earnings, or dividends earned
2 2 or declared on a security in an account, a
2 3 reinvestment account, or a brokerage account, whether
2 4 or not credited to the account before the owner's
2 5 death.
2 6 b. A cash balance or other property held for or
2 7 due to the owner of a security as a replacement for or
2 8 product of an account security, whether or not
2 9 credited to the account before the owner's death.
2 10 8. "State" includes any state of the United
2 11 States, the District of Columbia, the Commonwealth of
2 12 Puerto Rico, and any territory or possession subject
2 13 to the legislative authority of the United States.
2 14 Sec. . NEW SECTION. 633.802 REGISTRATION IN
2 15 BENEFICIARY FORM – SOLE OR JOINT TENANCY OWNERSHIP.
2 16 Only an individual whose registration of a security
2 17 shows sole ownership by one individual or multiple
2 18 ownership by two or more individuals with a right of
2 19 survivorship, rather than as tenants in common, may
2 20 obtain registration in beneficiary form. Multiple
2 21 owners of a security registered in beneficiary form
2 22 shall hold as joint tenants with rights of
2 23 survivorship, tenants by the entireties, or owners of
2 24 community property held in survivorship form and not
2 25 as tenants in common.
2 26 Sec. . NEW SECTION. 633.803 REGISTRATION IN
2 27 BENEFICIARY FORM – APPLICABLE LAW.
2 28 1. A security may be registered in beneficiary
2 29 form if the form is authorized by this division or a
2 30 similar statute of the state of any of the following:
2 31 a. The state of organization of the issuer or
2 32 registering entity.
2 33 b. The state of location of the registering
2 34 entity's principal office.
2 35 c. The state of location of the office of the
2 36 entity's transfer agent or the office of the entity
2 37 making the registration.
2 38 d. The state of the address listed as the owner's
2 39 at the time of registration.
2 40 2. A registration governed by the law of a
2 41 jurisdiction in which this division or a similar
2 42 statute is not in force or was not in force when a
2 43 registration in beneficiary form was made is presumed
2 44 to be valid and authorized as a matter of contract
2 45 law.
2 46 Sec. . NEW SECTION. 633.804 ORIGINATION OF
2 47 REGISTRATION IN BENEFICIARY FORM.
2 48 A security, whether evidenced by a certificate or
2 49 account, is registered in beneficiary form when the
2 50 registration includes a designation of a beneficiary
3 1 to take the ownership at the death of the owner or the
3 2 deaths of all multiple owners.
3 3 Sec. . NEW SECTION. 633.805 FORM OF
3 4 REGISTRATION IN BENEFICIARY FORM.
3 5 Registration in beneficiary form may be shown by
3 6 any of the following, appearing after the name of the
3 7 registered owner and before the name of a beneficiary:
3 8 1. The words "transfer on death" or the
3 9 abbreviation "TOD".
3 10 2. The words "pay on death" or the abbreviation
3 11 "POD".
3 12 Sec. . NEW SECTION. 633.806 EFFECT OF
3 13 REGISTRATION IN BENEFICIARY FORM.
3 14 The designation of a transfer on death or pay on
3 15 death beneficiary on a registration in beneficiary
3 16 form has no effect on ownership until the owner's
3 17 death. A registration of a security in beneficiary
3 18 form may be canceled or changed at any time by the
3 19 sole owner or all surviving owners without the consent
3 20 of the beneficiary.
3 21 Sec. . NEW SECTION. 633.807 UNPAID CLAIMS.
3 22 1. If other assets of the estate of a deceased
3 23 owner are insufficient, a transfer at death of a
3 24 security registered in beneficiary form is not
3 25 effective against the estate of the deceased owner to
3 26 the extent needed to pay claims against the estate and
3 27 statutory allowances to the surviving spouse and
3 28 children.
3 29 2. A beneficiary of a transfer on death security
3 30 registration under this chapter is liable to account
3 31 to the personal representative of the deceased owner
3 32 for the value of the security as of the time of the
3 33 deceased owner's death to the extent necessary to
3 34 discharge these unpaid claims and allowances. A
3 35 proceeding against a beneficiary to assert liability
3 36 shall not be commenced unless the personal
3 37 representative has received a written demand by the
3 38 surviving spouse, a creditor, a child, or a person
3 39 acting for a minor child of the deceased owner. The
3 40 proceeding must be commenced within one year after the
3 41 death of the owner.
3 42 3. A beneficiary against whom a proceeding to
3 43 account is brought may join a beneficiary of any other
3 44 security registered in beneficiary form by the
3 45 deceased owner as a party to the proceeding.
3 46 Sec. . NEW SECTION. 633.808 THE DEATH OF THE
3 47 OWNER.
3 48 On the death of a sole owner or on the death of the
3 49 sole surviving owner of multiple owners, the ownership
3 50 of securities registered in beneficiary form passes to
4 1 the beneficiary or beneficiaries who survive all
4 2 owners. On proof of death of all owners and
4 3 compliance with any applicable requirements of the
4 4 registering entity, a security registered in
4 5 beneficiary form may be reregistered in the name of
4 6 the beneficiary or beneficiaries who survived the
4 7 death of all owners. A registering entity shall
4 8 provide notice to the department of revenue and
4 9 finance of all reregistrations made pursuant to this
4 10 division. The notice shall include the name, address,
4 11 and social security number of the descendant and all
4 12 transferees. Until the division of the security after
4 13 the death of all owners, multiple beneficiaries
4 14 surviving the death of all owners hold their interests
4 15 as tenants in common. If no beneficiary survives the
4 16 death of all owners, the security belongs to the
4 17 estate of the deceased sole owner or the estate of the
4 18 last to die of multiple owners.
4 19 Sec. . NEW SECTION. 633.809 PROTECTION OF
4 20 REGISTERING ENTITY.
4 21 1. A registering entity is not required to offer
4 22 or to accept a request for security registration in
4 23 beneficiary form. If a registration in beneficiary
4 24 form is offered by a registering entity, the owner
4 25 requesting registration in beneficiary form assents to
4 26 the protections provided to the registering entity by
4 27 this division.
4 28 2. By accepting a request for registration of a
4 29 security in beneficiary form, the registering entity
4 30 agrees that the registration in beneficiary form shall
4 31 be implemented on the death of the deceased owner as
4 32 provided in this division.
4 33 3. A registering entity is discharged from all
4 34 claims to a security by the estate, creditors, heirs,
4 35 or devisees of a deceased owner if the registering
4 36 entity registers a transfer of the security in
4 37 accordance with section 633.807 and does so in good
4 38 faith reliance on all of the following:
4 39 a. The registration.
4 40 b. The provisions of this division.
4 41 c. Information provided by affidavit of the
4 42 personal representative of the deceased owner, the
4 43 surviving beneficiary, or the surviving beneficiary's
4 44 representative, or other information available to the
4 45 registering entity.
4 46 The protections of this division do not extend to a
4 47 reregistration or payment made after a registering
4 48 entity has received written notice from any claimant
4 49 to any interest in the security objecting to
4 50 implementation of a registration in beneficiary form.
5 1 No other notice or other information available to the
5 2 registering entity affects its right to protection
5 3 under this division.
5 4 4. The protection provided by this division to the
5 5 registering entity of a security does not affect the
5 6 rights of beneficiaries in disputes between themselves
5 7 and other claimants to ownership of the transferred
5 8 security, its value, or its proceeds.
5 9 Sec. . NEW SECTION. 633.810 NONTESTAMENTARY
5 10 TRANSFER ON DEATH.
5 11 1. A transfer on death resulting from a
5 12 registration in beneficiary form shall be effective by
5 13 reason of the contract regarding the registration
5 14 between the owner and the registering entity under the
5 15 provisions of this division, and is not testamentary.
5 16 2. The provisions of this division do not limit
5 17 the rights of creditors or security owners against
5 18 beneficiaries and other transferees under other laws
5 19 of this state.
5 20 Sec. . NEW SECTION. 633.811 TERMS,
5 21 CONDITIONS, AND FORMS FOR REGISTRATION.
5 22 1. A registering entity offering to accept
5 23 registrations in beneficiary form may establish the
5 24 terms and conditions under which the registering
5 25 entity receives requests for either of the following:
5 26 a. Registration in beneficiary form.
5 27 b. Implementation of registrations in beneficiary
5 28 form, including requests for cancellation of
5 29 previously registered transfer on death or pay on
5 30 death beneficiary designations and requests for
5 31 reregistration to effect a change of beneficiary.
5 32 2. a. The terms and conditions established by the
5 33 registering entity may provide for proving death,
5 34 avoiding or resolving problems concerning fractional
5 35 shares, designating primary and contingent
5 36 beneficiaries, and substituting a named beneficiary's
5 37 descendants to take in place of the name beneficiary
5 38 in the event of the beneficiary's death. Substitution
5 39 may be indicated by appending to the name of the
5 40 beneficiary the letters "LDPS" standing for "lineal
5 41 descendants per stirpes". This designation shall
5 42 substitute a deceased beneficiary's descendants who
5 43 survive the owner for a beneficiary who fails to
5 44 survive, with the descendants to be identified and to
5 45 share in accordance with the law of the beneficiary's
5 46 domicile at the owner's death governing inheritance by
5 47 descendants of an intestate. Other forms of
5 48 identifying beneficiaries who are to take on one or
5 49 more contingencies, and rules for providing proofs and
5 50 assurances needed to satisfy reasonable concerns by
6 1 registering entities regarding conditions and
6 2 identities relevant to accurate implementation of
6 3 registrations in beneficiary form, may be contained in
6 4 a registering entity's terms and conditions.
6 5 b. The following are illustrations of
6 6 registrations in beneficiary form which a registering
6 7 entity may authorize:
6 8 (1) Sole owner-sole beneficiary: OWNER'S NAME
6 9 transfer on death (TOD) or pay on death (POD) to
6 10 BENEFICIARY'S NAME.
6 11 (2) Multiple owners-sole beneficiary: OWNERS'
6 12 NAMES, as joint tenants or tenants in the entirety,
6 13 transfer on death (TOD) or pay on death (POD) to
6 14 BENEFICIARY'S NAME.
6 15 (3) Multiple owners-primary and secondary
6 16 (substituted) beneficiaries: OWNERS' NAMES as joint
6 17 tenants or tenants in the entirety, transfer on death
6 18 (TOD) or pay on death (POD) to BENEFICIARY'S NAME, or
6 19 lineal descendants per stirpes.
6 20 Sec. . APPLICATION. The provisions of this
6 21 division relating to the uniform transfer on death
6 22 security registration Act apply to registrations of
6 23 securities in beneficiary form made before, on, or
6 24 after the effective date of this Act, by decedents
6 25 dying on or after the effective date of this Act."
6 26 #2. Title page, line 1, by inserting after the
6 27 word "for" the following: "registration of securities
6 28 in a transfer-on-death form, and".
6 29 #3. By renumbering as necessary.
6 30
6 31
6 32
6 33 HALVORSON of Clayton
6 34 HF 2500.701 76
6 35 jls/sc
Text: H06037 Text: H06039 Text: H06000 - H06099 Text: H Index Bills and Amendments: General Index Bill History: General Index
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