Text: S05853 Text: S05855 Text: S05800 - S05899 Text: S Index Bills and Amendments: General Index Bill History: General Index
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1 1 Amend House File 2500, as passed by the House, as
1 2 follows:
1 3 #1. Page 1, by inserting after line 28 the
1 4 following:
1 5 "Sec. . NEW SECTION. 633.800 SHORT TITLE –
1 6 RULES OF CONSTRUCTION.
1 7 1. This division shall be known and may be cited
1 8 as the uniform transfer on death security registration
1 9 Act.
1 10 2. The provisions of this division shall be
1 11 liberally construed and applied to promote its
1 12 underlying purposes and policy and to make uniform the
1 13 laws with respect to the subject of its provisions
1 14 among states enacting this uniform Act.
1 15 3. Unless displaced by the particular provisions
1 16 of this division, the principles of law and equity
1 17 supplement the provisions of this division.
1 18 Sec. . NEW SECTION. 633.801 DEFINITIONS.
1 19 As used in this division, unless the context
1 20 otherwise requires:
1 21 1. "Beneficiary form" means a registration of a
1 22 security which indicates the present owner of the
1 23 security and the intention of the owner regarding the
1 24 person who will become the owner of the security upon
1 25 the death of the owner.
1 26 2. "Devisee" means any person designated in a will
1 27 to receive a disposition of real or personal property.
1 28 3. "Heir" means a person, including the surviving
1 29 spouse, who is entitled under the statutes of
1 30 intestate succession to the property of a decedent.
1 31 4. "Register" means to issue a certificate showing
1 32 the ownership of a certificated security or, in the
1 33 case of an uncertificated security, to initiate or
1 34 transfer an account showing ownership of the security.
1 35 5. "Registering entity" means a person who
1 36 originates or transfers a security title by
1 37 registration, including a broker maintaining security
1 38 accounts for customers and a transfer agent or other
1 39 person acting for or as an issuer of securities.
1 40 6. "Security" means a share, participation, or
1 41 other interest in property, in a business, or in an
1 42 obligation of an enterprise or other issuer, including
1 43 a certificated security, an uncertificated security,
1 44 and a security account.
1 45 7. "Security account" means either of the
1 46 following:
1 47 a. Any of the following:
1 48 (1) A reinvestment account associated with a
1 49 security.
1 50 (2) A securities account with a broker.
2 1 (3) A cash balance in a brokerage account.
2 2 (4) Cash, interest, earnings, or dividends earned
2 3 or declared on a security in an account, a
2 4 reinvestment account, or a brokerage account, whether
2 5 or not credited to the account before the owner's
2 6 death.
2 7 b. A cash balance or other property held for or
2 8 due to the owner of a security as a replacement for or
2 9 product of an account security, whether or not
2 10 credited to the account before the owner's death.
2 11 8. "State" includes any state of the United
2 12 States, the District of Columbia, the Commonwealth of
2 13 Puerto Rico, and any territory or possession subject
2 14 to the legislative authority of the United States.
2 15 Sec. . NEW SECTION. 633.802 REGISTRATION IN
2 16 BENEFICIARY FORM – SOLE OR JOINT TENANCY OWNERSHIP.
2 17 Only an individual whose registration of a security
2 18 shows sole ownership by one individual or multiple
2 19 ownership by two or more individuals with a right of
2 20 survivorship, rather than as tenants in common, may
2 21 obtain registration in beneficiary form. Multiple
2 22 owners of a security registered in beneficiary form
2 23 shall hold as joint tenants with rights of
2 24 survivorship, tenants by the entireties, or owners of
2 25 community property held in survivorship form and not
2 26 as tenants in common.
2 27 Sec. . NEW SECTION. 633.803 REGISTRATION IN
2 28 BENEFICIARY FORM – APPLICABLE LAW.
2 29 1. A security may be registered in beneficiary
2 30 form if the form is authorized by this division or a
2 31 similar statute of the state of any of the following:
2 32 a. The state of organization of the issuer or
2 33 registering entity.
2 34 b. The state of location of the registering
2 35 entity's principal office.
2 36 c. The state of location of the office of the
2 37 entity's transfer agent or the office of the entity
2 38 making the registration.
2 39 d. The state of the address listed as the owner's
2 40 at the time of registration.
2 41 2. A registration governed by the law of a
2 42 jurisdiction in which this division or a similar
2 43 statute is not in force or was not in force when a
2 44 registration in beneficiary form was made is presumed
2 45 to be valid and authorized as a matter of contract
2 46 law.
2 47 Sec. . NEW SECTION. 633.804 ORIGINATION OF
2 48 REGISTRATION IN BENEFICIARY FORM.
2 49 A security, whether evidenced by a certificate or
2 50 account, is registered in beneficiary form when the
3 1 registration includes a designation of a beneficiary
3 2 to take the ownership at the death of the owner or the
3 3 deaths of all multiple owners.
3 4 Sec. . NEW SECTION. 633.805 FORM OF
3 5 REGISTRATION IN BENEFICIARY FORM.
3 6 Registration in beneficiary form may be shown by
3 7 any of the following, appearing after the name of the
3 8 registered owner and before the name of a beneficiary:
3 9 1. The words "transfer on death" or the
3 10 abbreviation "TOD".
3 11 2. The words "pay on death" or the abbreviation
3 12 "POD".
3 13 Sec. . NEW SECTION. 633.806 EFFECT OF
3 14 REGISTRATION IN BENEFICIARY FORM.
3 15 The designation of a transfer on death or pay on
3 16 death beneficiary on a registration in beneficiary
3 17 form has no effect on ownership until the owner's
3 18 death. A registration of a security in beneficiary
3 19 form may be canceled or changed at any time by the
3 20 sole owner or all surviving owners without the consent
3 21 of the beneficiary.
3 22 Sec. . NEW SECTION. 633.807 UNPAID CLAIMS.
3 23 1. If other assets of the estate of a deceased
3 24 owner are insufficient, a transfer at death of a
3 25 security registered in beneficiary form is not
3 26 effective against the estate of the deceased owner to
3 27 the extent needed to pay claims against the estate and
3 28 statutory allowances to the surviving spouse and
3 29 children.
3 30 2. A beneficiary of a transfer on death security
3 31 registration under this chapter is liable to account
3 32 to the personal representative of the deceased owner
3 33 for the value of the security as of the time of the
3 34 deceased owner's death to the extent necessary to
3 35 discharge these unpaid claims and allowances. A
3 36 proceeding against a beneficiary to assert liability
3 37 shall not be commenced unless the personal
3 38 representative has received a written demand by the
3 39 surviving spouse, a creditor, a child, or a person
3 40 acting for a minor child of the deceased owner. The
3 41 proceeding must be commenced within one year after the
3 42 death of the owner.
3 43 3. A beneficiary against whom a proceeding to
3 44 account is brought may join a beneficiary of any other
3 45 security registered in beneficiary form by the
3 46 deceased owner as a party to the proceeding.
3 47 Sec. . NEW SECTION. 633.808 THE DEATH OF THE
3 48 OWNER.
3 49 On the death of a sole owner or on the death of the
3 50 sole surviving owner of multiple owners, the ownership
4 1 of securities registered in beneficiary form passes to
4 2 the beneficiary or beneficiaries who survive all
4 3 owners. On proof of death of all owners and
4 4 compliance with any applicable requirements of the
4 5 registering entity, a security registered in
4 6 beneficiary form may be reregistered in the name of
4 7 the beneficiary or beneficiaries who survived the
4 8 death of all owners. A registering entity shall
4 9 provide notice to the department of revenue and
4 10 finance of all reregistrations made pursuant to this
4 11 division. The notice shall include the name, address,
4 12 and social security number of the descendant and all
4 13 transferees. Until the division of the security after
4 14 the death of all owners, multiple beneficiaries
4 15 surviving the death of all owners hold their interests
4 16 as tenants in common. If no beneficiary survives the
4 17 death of all owners, the security belongs to the
4 18 estate of the deceased sole owner or the estate of the
4 19 last to die of multiple owners.
4 20 Sec. . NEW SECTION. 633.809 PROTECTION OF
4 21 REGISTERING ENTITY.
4 22 1. A registering entity is not required to offer
4 23 or to accept a request for security registration in
4 24 beneficiary form. If a registration in beneficiary
4 25 form is offered by a registering entity, the owner
4 26 requesting registration in beneficiary form assents to
4 27 the protections provided to the registering entity by
4 28 this division.
4 29 2. By accepting a request for registration of a
4 30 security in beneficiary form, the registering entity
4 31 agrees that the registration in beneficiary form shall
4 32 be implemented on the death of the deceased owner as
4 33 provided in this division.
4 34 3. A registering entity is discharged from all
4 35 claims to a security by the estate, creditors, heirs,
4 36 or devisees of a deceased owner if the registering
4 37 entity registers a transfer of the security in
4 38 accordance with section 633.807 and does so in good
4 39 faith reliance on all of the following:
4 40 a. The registration.
4 41 b. The provisions of this division.
4 42 c. Information provided by affidavit of the
4 43 personal representative of the deceased owner, the
4 44 surviving beneficiary, or the surviving beneficiary's
4 45 representative, or other information available to the
4 46 registering entity.
4 47 The protections of this division do not extend to a
4 48 reregistration or payment made after a registering
4 49 entity has received written notice from any claimant
4 50 to any interest in the security objecting to
5 1 implementation of a registration in beneficiary form.
5 2 No other notice or other information available to the
5 3 registering entity affects its right to protection
5 4 under this division.
5 5 4. The protection provided by this division to the
5 6 registering entity of a security does not affect the
5 7 rights of beneficiaries in disputes between themselves
5 8 and other claimants to ownership of the transferred
5 9 security, its value, or its proceeds.
5 10 Sec. . NEW SECTION. 633.810 NONTESTAMENTARY
5 11 TRANSFER ON DEATH.
5 12 1. A transfer on death resulting from a
5 13 registration in beneficiary form shall be effective by
5 14 reason of the contract regarding the registration
5 15 between the owner and the registering entity under the
5 16 provisions of this division, and is not testamentary.
5 17 2. The provisions of this division do not limit
5 18 the rights of creditors or security owners against
5 19 beneficiaries and other transferees under other laws
5 20 of this state.
5 21 Sec. . NEW SECTION. 633.811 TERMS,
5 22 CONDITIONS, AND FORMS FOR REGISTRATION.
5 23 1. A registering entity offering to accept
5 24 registrations in beneficiary form may establish the
5 25 terms and conditions under which the registering
5 26 entity receives requests for either of the following:
5 27 a. Registration in beneficiary form.
5 28 b. Implementation of registrations in beneficiary
5 29 form, including requests for cancellation of
5 30 previously registered transfer on death or pay on
5 31 death beneficiary designations and requests for
5 32 reregistration to effect a change of beneficiary.
5 33 2. a. The terms and conditions established by the
5 34 registering entity may provide for proving death,
5 35 avoiding or resolving problems concerning fractional
5 36 shares, designating primary and contingent
5 37 beneficiaries, and substituting a named beneficiary's
5 38 descendants to take in place of the name beneficiary
5 39 in the event of the beneficiary's death. Substitution
5 40 may be indicated by appending to the name of the
5 41 beneficiary the letters "LDPS" standing for "lineal
5 42 descendants per stirpes". This designation shall
5 43 substitute a deceased beneficiary's descendants who
5 44 survive the owner for a beneficiary who fails to
5 45 survive, with the descendants to be identified and to
5 46 share in accordance with the law of the beneficiary's
5 47 domicile at the owner's death governing inheritance by
5 48 descendants of an intestate. Other forms of
5 49 identifying beneficiaries who are to take on one or
5 50 more contingencies, and rules for providing proofs and
6 1 assurances needed to satisfy reasonable concerns by
6 2 registering entities regarding conditions and
6 3 identities relevant to accurate implementation of
6 4 registrations in beneficiary form, may be contained in
6 5 a registering entity's terms and conditions.
6 6 b. The following are illustrations of
6 7 registrations in beneficiary form which a registering
6 8 entity may authorize:
6 9 (1) Sole owner-sole beneficiary: OWNER'S NAME
6 10 transfer on death (TOD) or pay on death (POD) to
6 11 BENEFICIARY'S NAME.
6 12 (2) Multiple owners-sole beneficiary: OWNERS'
6 13 NAMES, as joint tenants or tenants in the entirety,
6 14 transfer on death (TOD) or pay on death (POD) to
6 15 BENEFICIARY'S NAME.
6 16 (3) Multiple owners-primary and secondary
6 17 (substituted) beneficiaries: OWNERS' NAMES as joint
6 18 tenants or tenants in the entirety, transfer on death
6 19 (TOD) or pay on death (POD) to BENEFICIARY'S NAME, or
6 20 lineal descendants per stirpes.
6 21 Sec. . APPLICATION. The provisions of this
6 22 division relating to the uniform transfer on death
6 23 security registration Act apply to registrations of
6 24 securities in beneficiary form made before, on, or
6 25 after the effective date of this Act, by decedents
6 26 dying on or after the effective date of this Act."
6 27 #2. Title page, line 1, by inserting after the
6 28 word "for" the following: "registration of securities
6 29 in a transfer-on-death form, and".
6 30 #3. By renumbering as necessary.
6 31
6 32
6 33
6 34 MARY LOU FREEMAN
6 35 HF 2500.301 76
6 36 jls/cf
Text: S05853 Text: S05855 Text: S05800 - S05899 Text: S Index Bills and Amendments: General Index Bill History: General Index
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