House Journal: Page 1379: Monday, April 23, 2001
Page 58
1 including third-party claims. Distribution of assets
2 in kind may be made at valuations set by agreement
3 between the liquidator and the creditor and approved
4 by the court.
5 21. UNCLAIMED AND WITHHELD FUNDS.
6 a. Unclaimed funds subject to distribution
7 remaining in the liquidator's hands when the
8 liquidator is ready to apply to the court for
9 discharge, including the amount distributable to a
10 creditor, owner, or other person who is unknown or
11 cannot be found, shall be deposited with the treasurer
12 of the state, and shall be paid without interest,
13 except as provided in subsection 18, to the person
14 entitled or to the person's legal representative upon
15 proof satisfactory to the treasurer of state of the
16 right to the funds. Any amount on deposit not claimed
17 within six years from the discharge of the liquidator
18 is deemed to have been abandoned and shall become the
19 property of the state without formal escheat
20 proceedings and be transferred to the insurance
21 division regulatory fund.
22 b. Funds withheld under subsection 14 and not
23 distributed shall upon discharge of the liquidator be
24 deposited with the treasurer of state and paid
25 pursuant to subsection 18. Sums remaining which under
26 subsection 18 would revert to the undistributed assets
27 of the establishment shall be transferred to the
28 insurance division regulatory fund and become the
29 property of the state as provided under paragraph "a",
30 unless the commissioner in the commissioner's
31 discretion petitions the court to reopen the
32 liquidation pursuant to subsection 23.
33 c. Notwithstanding any other provision of this
34 chapter, funds as identified in paragraph "a", with
35 the approval of the court, shall be made available to
36 the commissioner for use in the detection and
37 prevention of future insolvencies. The commissioner
38 shall hold these funds in the insurance division
39 regulatory fund and shall pay without interest, except
40 as provided in subsection 18, to the person entitled
41 to the funds or to the person's legal representative
42 upon proof satisfactory to the commissioner of the
43 person's right to the funds. The funds shall be held
44 by the commissioner for a period of two years at which
45 time the rights and duties to the unclaimed funds
46 shall vest in the commissioner.
47 22. TERMINATION OF PROCEEDINGS.
48 a. When all assets justifying the expense of
49 collection and distribution have been collected and
50 distributed under this chapter, the liquidator shall
© 2001 Cornell College and
League of Women Voters of Iowa
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