Text: SF02172 Text: SF02174 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 507C.45, subsection 1, Code 1997, is 1 2 amended to read as follows: 1 3 1. Unclaimed funds subject to distribution remaining in 1 4 the liquidator's hands when the liquidator is ready to apply 1 5 to the court for discharge, including the amount distributable 1 6 to a creditor, shareholder, member, or other person who is 1 7 unknown or cannot be found, shall be deposited with thestate1 8 treasurer of state, and shall be paid without interest, except 1 9 in accordance with section 507C.42, to the person entitled to 1 10 the funds or to the person's legal representative upon proof 1 11 satisfactory to thestatetreasurer of state of the right to 1 12 the funds. An amount on deposit not claimed within six years 1 13 from the discharge of the liquidator is deemed to have been 1 14 abandoned and shall become the property of the state without 1 15 formal escheat proceedings and shall bedeposited with the1 16general fundmade available to the commissioner for use in the 1 17 detection and prevention of future insolvencies. 1 18 Sec. 2. Section 507C.45, subsection 3, Code 1997, is 1 19 amended by striking the subsection. 1 20 EXPLANATION 1 21 This bill provides that funds remaining on deposit with the 1 22 treasurer of state after six years from the date of discharge 1 23 of a liquidator associated with the liquidation of an 1 24 insurance company under Code chapter 507C, and which are 1 25 deemed to be abandoned, are to be made available to the 1 26 insurance commissioner for use in detecting and preventing 1 27 future insolvencies of insurance companies. The bill 1 28 eliminates an additional two-year waiting period before such 1 29 funds might be made available to the commissioner. 1 30 Currently, such funds are to be deposited in the general 1 31 fund of the state, unless, with the approval of the court, 1 32 such funds are to be made available to the insurance 1 33 commissioner for use in the detection and prevention of future 1 34 insolvencies. Prior to being able to use these funds, 1 35 however, the commissioner must hold the funds for an 2 1 additional two years for the payment to persons entitled to 2 2 the funds. After this two-year period, the rights and duties 2 3 to the remaining unclaimed funds vest in the commissioner. 2 4 LSB 3982XS 77 2 5 mj/sc/14
Text: SF02172 Text: SF02174 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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