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PAG LIN 1 1 Section 1. Section 556.1, subsection 2, Code Supplement 1 2 1995, is amended to read as follows: 1 3 2. "Business association" meansanya corporationother1 4than a public corporation, joint stock company, business 1 5 trust, investment company, partnership, limited liability 1 6 company, trust company, mutual fund, orany association for1 7business purposes of two or more individualsother business 1 8 entity consisting of one or more persons, whether or not for 1 9 profit. 1 10 Sec. 2. Section 556.1, Code Supplement 1995, is amended by 1 11 adding the following new subsection: 1 12 NEW SUBSECTION. 8A. "Property" means a fixed and certain 1 13 interest in or right in an intangible that is held, issued, or 1 14 owed in the course of a holder's business, or by a government 1 15 or governmental entity, and all income or increment therefrom, 1 16 including that which is referred to as or evidenced by any of 1 17 the following: 1 18 a. Money, check, draft, deposit, interest, dividend, and 1 19 income. 1 20 b. Credit balance, customer overpayment, gift certificate, 1 21 security deposit, refund, credit memorandum, unpaid wage, 1 22 unused airline ticket, unused ticket, mineral proceeds, and 1 23 unidentified remittance and electronic fund transfer. 1 24 c. Stock or other evidence of ownership interests in a 1 25 business association. 1 26 d. Bond, debenture, note, or other evidence of 1 27 indebtedness. 1 28 e. Money deposited to redeem stocks, bonds, coupons, and 1 29 other securities, or to make distributions. 1 30 f. An amount due and payable under the terms of an 1 31 insurance policy, including policies providing life insurance, 1 32 property and casualty insurance, workers' compensation 1 33 insurance, or health and disability benefits insurance. 1 34 g. An amount distributable from a trust or custodian fund 1 35 established under a plan to provide health, welfare, pension, 2 1 vacation, severance, retirement, death, stock purchase, profit 2 2 sharing, employee savings, supplemental unemployment 2 3 insurance, or similar benefits. 2 4 h. Amounts distributable from a mineral interest in land. 2 5 i. Any other fixed and certain interest or right in an 2 6 intangible that is held, issued, or owing in the course of a 2 7 holder's business, or by a government or governmental entity. 2 8 Sec. 3. Section 556.2, subsection 4, Code Supplement 1995, 2 9 is amended by striking the subsection. 2 10 Sec. 4. NEW SECTION. 556.2A TRAVELER'S CHECKS AND MONEY 2 11 ORDERS. 2 12 1. Subject to subsection 4, any sum payable on a 2 13 traveler's check that has been outstanding for more than 2 14 fifteen years after its issuance is deemed abandoned unless 2 15 the owner, within fifteen years, has communicated in writing 2 16 with the issuer concerning it or otherwise indicated an 2 17 interest as evidenced by a memorandum or other record on file 2 18 prepared by an employee of the issuer. 2 19 2. Subject to subsection 4, any sum payable on a money 2 20 order that has been outstanding for more than seven years 2 21 after its issuance is deemed abandoned unless the owner, 2 22 within seven years, has communicated in writing with the 2 23 issuer concerning it or otherwise indicated an interest as 2 24 evidenced by a memorandum or other record on file prepared by 2 25 an employee of the issuer. 2 26 3. A holder shall not deduct from the amount of a 2 27 traveler's check or money order any charge imposed by reason 2 28 of the failure to present the instrument for payment unless 2 29 there is a valid and enforceable written contract between the 2 30 issuer and the owner of the instrument pursuant to which the 2 31 issuer may impose a charge and the issuer regularly imposes 2 32 such charges and does not regularly reverse or otherwise 2 33 cancel them. 2 34 4. A sum payable on a traveler's check or money order 2 35 described in subsection 1 or 2 shall not be subjected to the 3 1 custody of this state as unclaimed property unless any of the 3 2 following apply: 3 3 a. The records of the issuer show that the traveler's 3 4 check or money order was purchased in this state. 3 5 b. The issuer has its principal place of business in this 3 6 state and the records of the issuer do not show the state in 3 7 which the traveler's check or money order was purchased. 3 8 c. The issuer has its principal place of business in this 3 9 state, the records of the issuer show the state in which the 3 10 traveler's check or money order was purchased, and the laws of 3 11 the state of purchase do not provide for the escheat or 3 12 custodial taking of the property or its escheat or unclaimed 3 13 property law is not applicable to the property. 3 14 Sec. 5. NEW SECTION. 556.2B CHECKS, DRAFTS, AND SIMILAR 3 15 INSTRUMENTS ISSUED OR CERTIFIED BY BANKING AND FINANCIAL 3 16 ORGANIZATIONS. 3 17 1. Any sum payable on a check, draft, or similar 3 18 instrument, except those subject to section 556.2A, on which a 3 19 banking or financial organization is directly liable, 3 20 including a cashier's check and a certified check, which has 3 21 been outstanding for more than three years after it was 3 22 payable or after its issuance if payable on demand, is deemed 3 23 abandoned, unless the owner, within three years, has 3 24 communicated in writing with the banking or financial 3 25 organization concerning it or otherwise indicated an interest 3 26 as evidenced by a memorandum or other record on file prepared 3 27 by an employee of the banking or financial organization. 3 28 2. A holder shall not deduct from the amount of any 3 29 instrument subject to this section any charge imposed by 3 30 reason of the failure to present the instrument for payment 3 31 unless there is a valid and enforceable written contract 3 32 between the holder and the owner of the instrument pursuant to 3 33 which the holder may impose a charge and the holder regularly 3 34 imposes such charges and does not regularly reverse or 3 35 otherwise cancel them. 4 1 Sec. 6. Section 556.5, Code 1995, is amended by striking 4 2 the section and inserting in lieu thereof the following: 4 3 556.5 STOCKS AND OTHER INTANGIBLE INTERESTS IN BUSINESS 4 4 ASSOCIATIONS. 4 5 1. Any stock, shareholding, or other intangible ownership 4 6 interests in a business association, the existence of which is 4 7 evidenced by records available to the association, is deemed 4 8 abandoned and, with respect to the interest, the association 4 9 is the holder, if both of the following apply: 4 10 a. The interest in the association is owned by a person 4 11 who for more than three years has neither claimed a dividend, 4 12 distribution, nor other sum payable as a result of the 4 13 interest, or who has not communicated with the association 4 14 regarding the interest or a dividend, distribution, or other 4 15 sum payable as the result of the interest, as evidenced by a 4 16 memorandum or other record on file with the association 4 17 prepared by an employee of the association. 4 18 b. The association does not know the location of the owner 4 19 at the end of the three-year period. 4 20 2. The return of official shareholder notifications or 4 21 communications by the postal service as undeliverable shall be 4 22 evidence that the association does not know the location of 4 23 the owner. 4 24 3. This section shall be applicable to both the underlying 4 25 stock, shareholdings, or other intangible ownership interests 4 26 of an owner, and any stock, shareholdings, or other intangible 4 27 ownership interest of which the business association is in 4 28 possession of the certificate or other evidence or indicia of 4 29 ownership, and to the stock, shareholdings, or other 4 30 intangible ownership interests of dividend and nondividend 4 31 paying business associations whether or not the interest is 4 32 represented by a certificate. 4 33 4. At the time an interest is deemed abandoned under this 4 34 section, any dividend, distribution, or other sum then held 4 35 for or owing to the owner as a result of the interest, and not 5 1 previously deemed abandoned, is deemed abandoned. 5 2 5. This section does not apply to any stock or other 5 3 intangible ownership interest enrolled in a plan that provides 5 4 for the automatic reinvestment of dividends, distributions, or 5 5 other sums payable as a result of the interest unless one or 5 6 more of the following applies: 5 7 a. The records available to the administrator of the plan 5 8 show, with respect to any intangible ownership interest not 5 9 enrolled in the reinvestment plan that the owner has not 5 10 within three years communicated in any manner described in 5 11 subsection 1. 5 12 b. Three years have elapsed since the location of the 5 13 owner became unknown to the association, as evidenced by the 5 14 return of official shareholder notifications or communications 5 15 by the postal service as undeliverable, and the owner has not 5 16 within those three years communicated in any manner described 5 17 in subsection 1. The three-year period from the return of 5 18 official shareholder notifications or communications shall 5 19 commence from the earlier of the return of the second such 5 20 mailing or the time the holder discontinues mailings to the 5 21 shareholder. 5 22 Sec. 7. Section 556.13, Code 1995, is amended by striking 5 23 the section and inserting in lieu thereof the following: 5 24 556.13 PAYMENT OR DELIVERY OF ABANDONED PROPERTY. 5 25 1. Except for property held in a safe deposit box or other 5 26 safekeeping depository, upon filing the report required by 5 27 section 556.11, the holder of property presumed abandoned 5 28 shall pay, deliver, or cause to be paid or delivered to the 5 29 administrator the property described in the report as 5 30 unclaimed, but if the property is an automatically renewable 5 31 deposit, and a penalty or forfeiture in the payment of 5 32 interest would result, the time for compliance is extended 5 33 until a penalty or forfeiture would no longer result. 5 34 Tangible property held in a safe deposit box or other 5 35 safekeeping depository shall not be delivered to the treasurer 6 1 of state until one hundred twenty days after filing the report 6 2 required in section 556.11. 6 3 2. If the property report to the treasurer of state is a 6 4 security or security entitlement under the Uniform Commercial 6 5 Code, chapter 554, article 8, the treasurer of state is an 6 6 appropriate person to make an endorsement, instruction, or 6 7 entitlement order on behalf of the apparent owner to invoke 6 8 the duty of the issuer or its transfer agent or the securities 6 9 intermediary to transfer or dispose of the security or the 6 10 security entitlement in accordance with the Uniform Commercial 6 11 Code, chapter 554, article 8. 6 12 3. If the holder of property reported to the treasurer of 6 13 state is the issuer of a certificated security, the treasurer 6 14 of state has the right to obtain a replacement certificate 6 15 pursuant to section 554.8408 but an indemnity bond is not 6 16 required. 6 17 4. An issuer, the holder, and any transfer agent or other 6 18 person acting pursuant to the instructions of and on behalf of 6 19 the issuer or holder in accordance with this section is not 6 20 liable to the apparent owner and shall be indemnified against 6 21 claims of any person in accordance with section 556.14. 6 22 EXPLANATION 6 23 This bill provides for changes in the definitions, 6 24 reporting, and remittance guidelines in chapter 556 relating 6 25 to the disposition of unclaimed property. 6 26 The bill broadens the definition of a business association 6 27 to include mutual funds, investment companies, limited 6 28 liability companies, trust companies, and not-for-profit 6 29 organizations. Section 556.1 presently contains a definition 6 30 of a business association which lists a smaller number of 6 31 organizations. 6 32 The bill adds the word "property" to the definition section 6 33 of chapter 556. The definition refers to property as a fixed 6 34 and certain interest or right in an intangible held, issued, 6 35 or owned in the course of business, or by a government or 7 1 governmental entity, including income or increment therefrom. 7 2 A list of types of interests evidencing property ownership or 7 3 rights is supplied. 7 4 The bill provides reporting guidelines for holders of 7 5 traveler's checks, money orders, banking and financial 7 6 organization instruments, stock, and other intangible 7 7 interests in business associations. The duration that 7 8 unclaimed amounts due or payable may remain outstanding before 7 9 being considered abandoned are specified, together with the 7 10 required form of communication for maintaining an interest 7 11 during that time, and the circumstances under which service 7 12 charges may be imposed. 7 13 The bill also provides for the remittance of unclaimed 7 14 property by the holder of the property upon filing a report of 7 15 abandoned property required by section 556.11. Securities or 7 16 security entitlements under the Uniform Commercial Code, 7 17 chapter 554, article 8, can be ordered transferred, remitted, 7 18 or disposed of by the treasurer of state on behalf of the 7 19 apparent owner. An issuer, holder, or any transfer agent, or 7 20 individuals acting on their instructions, shall not be liable 7 21 to the apparent owner of the property and shall be indemnified 7 22 against claims in accordance with section 556.14. 7 23 LSB 4453YH 76 7 24 rn/cf/24
Text: HF02498 Text: HF02500 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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