S.F. _____ Section 1. NEW SECTION . 556.9B United States savings bonds 1 —— escheatment procedures. 2 1. Notwithstanding any provision of this chapter to the 3 contrary, the escheat of United States savings bonds and 4 proceeds from such bonds to the state shall be governed by this 5 section. 6 2. United States savings bonds held or owing in this state 7 by any person, or issued or owed in the course of a holder’s 8 business, or issued or owed by a state or other government, 9 governmental subdivision, agency, or instrumentality, and all 10 proceeds from such bonds, shall escheat to the state three 11 years after such bonds are presumed abandoned property under 12 section 556.9, subsection 1. All property rights and legal 13 title to and ownership of such United States savings bonds 14 or proceeds from such bonds, including all rights, powers, 15 and privileges of survivorship of any owner, co-owner, or 16 beneficiary, shall vest solely in the state. 17 3. Within one hundred eighty days after the three-year 18 period referred to in subsection 2, if a claim has not been 19 filed in accordance with the provisions of section 556.19 for 20 the United States savings bonds, the treasurer of state shall 21 commence a civil action in the district court of Polk county 22 for a determination that the savings bonds shall escheat to 23 the state. The treasurer of state may postpone the bringing 24 of such an action until sufficient United States savings bonds 25 have accumulated in the treasurer of state’s custody to justify 26 the expense of the civil action. 27 4. a. In lieu of the notice and publication provisions 28 specified in section 556.12, the treasurer of state or the 29 treasurer of state’s attorney must file an affidavit or a 30 declaration stating all of the following that apply: 31 (1) That personal service of notice or notification by 32 certified mail has been attempted at the last known address of 33 all named defendants unless the treasurer or the treasurer’s 34 attorney has reason to believe that the address submitted 35 -1- LSB 6133XC (5) 85 rn/sc 1/ 4

S.F. _____ by the holder is unknown or not otherwise sufficient to 1 ensure that personal service or delivery of such notice will 2 likely occur. The notice shall notify the defendant of the 3 information in paragraph “b” , subparagraphs (1), (2), and (3). 4 (2) That a reasonable effort has been made to ascertain the 5 names and addresses of any defendants sought to be served as 6 unknown parties. 7 (3) That service of summons pursuant to subparagraph (1) or 8 (2) has been unsuccessful. 9 b. Following the filing of the affidavit or declaration 10 pursuant to paragraph “a” , the treasurer of state shall serve 11 notice by publication. Publication of the notice shall be made 12 once each week for three consecutive weeks in a newspaper of 13 general circulation published in the county where the petition 14 is filed. Such notice shall name any defendant to be served 15 and shall notify the defendant of the following: 16 (1) The defendant has been sued in a named court. 17 (2) The defendant must answer the petition or other pleading 18 or otherwise defend, on or before a specified date that is 19 less than forty-one days after the date the notice is first 20 published. 21 (3) If the defendant does not answer or otherwise defend, 22 the petition or other pleading will be taken as true and 23 judgment, the nature of which must be stated, will be rendered 24 accordingly. 25 5. If a person does not file a claim or appear at the 26 hearing to substantiate a claim, or if the court determines 27 that a claimant is not entitled to the property claimed by 28 the claimant, the court, if satisfied by evidence that the 29 treasurer of state has substantially complied with the laws 30 of this state, shall enter a judgment that the United States 31 savings bonds have escheated to the state, and all property 32 rights and legal title to and ownership of such savings bonds 33 or proceeds from such bonds, including all rights, powers, 34 and privileges of survivorship of any owner, co-owner, or 35 -2- LSB 6133XC (5) 85 rn/sc 2/ 4

S.F. _____ beneficiary, have vested solely in the state. 1 6. The treasurer of state shall redeem United States 2 savings bonds escheated to the state and the proceeds from the 3 redemption shall be deposited into the general fund of the 4 state in accordance with section 556.18. 5 7. Any person making a claim for the United States savings 6 bonds escheated to the state under this section, or for the 7 proceeds from such bonds, may file a claim in accordance 8 with section 556.19. Upon providing sufficient proof of the 9 validity of the person’s claim, the treasurer of state may pay 10 such claim in accordance with the provisions of section 556.20. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill provides a procedure for the escheatment to the 15 state of United States savings bonds presumed to be abandoned. 16 The bill provides that if a claim has not been filed for the 17 United States savings bonds within three years and 180 days 18 after the savings bonds were presumed abandoned under current 19 law, the treasurer of state shall commence a civil action in 20 the district court of Polk county for a determination that 21 the savings bonds shall escheat to the state. The treasurer 22 of state may postpone the bringing of such an action until 23 sufficient United States savings bonds have accumulated in the 24 treasurer of state’s custody to justify the expense of the 25 civil action. 26 The bill provides that, in lieu of existing notice 27 provisions, and after either personal service or service by 28 mail has been attempted or there is reason to believe that 29 such service or delivery will be unsuccessful, the treasurer 30 of state shall serve notice of the civil action by publication 31 in a newspaper of general circulation published in the county 32 where the petition is filed, naming any defendant remaining to 33 be served. The notice shall notify each defendant that the 34 defendant has been sued in a named court, that the defendant 35 -3- LSB 6133XC (5) 85 rn/sc 3/ 4

S.F. _____ must answer the petition or other pleading or otherwise 1 defend, on or before a specified date not less than 41 days 2 after the date the notice is first published and that if the 3 defendant does not answer or otherwise defend, the petition 4 or other pleading will be taken as true and judgment rendered 5 accordingly. The bill additionally requires that prior to 6 service by publication, the treasurer of state or the treasurer 7 of state’s attorney must file an affidavit or a declaration 8 relating to efforts undertaken to identify and serve notice 9 upon known and unknown defendants. 10 The bill provides that if a claim for the United States 11 savings bonds is not filed or no one appears at the hearing 12 to substantiate a claim, or if the court determines that 13 a claimant is not entitled to the property claimed by the 14 claimant, the court, if satisfied that the treasurer of state 15 has substantially complied with the required process, shall 16 enter a judgment that the savings bonds have escheated to 17 the state. The treasurer of state shall redeem the savings 18 bonds escheated and the proceeds from the redemption shall be 19 deposited into the general fund of the state. 20 The bill provides that any person making a claim for the 21 United States savings bonds escheated to the state or for the 22 proceeds from such bonds may file a claim for the bonds and 23 proceeds and, if sufficient proof of the validity of the claim 24 is determined to exist, the treasurer of state may pay the 25 claim in accordance with current law. 26 -4- LSB 6133XC (5) 85 rn/sc 4/ 4