Text: SF02172                           Text: SF02174
Text: SF02100 - SF02199                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index



Senate File 2173

Partial Bill History

Bill Text

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 the state
  1  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 the state treasurer 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 be deposited with the
  1 16 general fund made 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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