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Senate File 2313 - IntroducedA Bill ForAn Act 1relating to communication methods regarding the
2disposition of unclaimed property and including
3applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 556.1, Code 2022, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 3A. “Electronic messaging” means
4communication conducted through electronic mail, text message,
5or other electronic means, including but not limited to an
6online banking website application.
7 Sec. 2. Section 556.2, subsection 1, paragraph b, Code 2022,
8is amended to read as follows:
9b. Corresponded in writing or through electronic messaging
10 with the banking organization concerning the deposit.
11 Sec. 3. Section 556.2, subsection 1, paragraph d,
12subparagraphs (1) and (2), Code 2022, are amended to read as
13follows:
14(1) Communicated in writing or through electronic messaging
15 with the bank.
16(2) Otherwise indicated an interest as evidenced by a
17memorandum or other record on file prepared by an employee of
18the bank and if the bank communicates in writing or through
19electronic messaging with the owner with regard to the property
20that would otherwise be abandoned under this subsection at the
21physical address, electronic mail address, or phone number on
22file with the banking organization to which communications
23regarding the other relationship are regularly sent, including
24electronic messaging.
25 Sec. 4. Section 556.2, subsection 1, paragraph e, Code 2022,
26is amended to read as follows:
27e. Been sent any written correspondence, notice, or
28information by first class mail regarding the deposit by
29the banking organization on or after July 1, 1992, if the
30correspondence, notice, or information requests an address
31correction on the face of the envelope, and is not returned
32to the bank organization for nondelivery, and if the bank
33organization maintains a record of all returned mail, or
34been sent any correspondence, notice, or information through
35electronic messaging, and is not returned electronically to
-1-1the banking organization for nondelivery, and if the bank
2organization maintains a record of all returned electronic
3messaging.
4 Sec. 5. Section 556.2, subsection 2, paragraph b, Code 2022,
5is amended to read as follows:
6b. Corresponded in writing or through electronic messaging
7 with the financial organization concerning the funds or
8deposit.
9 Sec. 6. Section 556.2, subsection 2, paragraph d,
10subparagraphs (1) and (2), Code 2022, are amended to read as
11follows:
12(1) Communicated in writing or through electronic messaging
13 with the financial organization.
14(2) Otherwise indicated an interest as evidenced by a
15memorandum or other record on file prepared by an employee of
16the financial organization and if the financial organization
17communicates in writing or through electronic messaging with
18the owner with regard to the property that would otherwise
19be abandoned under this subsection at the physical address
20or electronic mail address or phone number on file with the
21financial organization to which communications regarding the
22other relationship are regularly sent, or messages sent through
23other electronic means.
24 Sec. 7. Section 556.2, subsection 2, paragraph e, Code 2022,
25is amended to read as follows:
26e. Been sent any written correspondence, notice, or
27information by first class mail regarding the funds or deposits
28by the financial organization on or after July 1, 1992, if the
29correspondence, notice, or information requests an address
30correction on the face of the envelope, and is not returned
31to the financial organization for nondelivery, and if the
32financial organization maintains a record of all returned mail,
33or been sent any correspondence, notice, or information through
34electronic messaging, and is not returned electronically to the
35financial organization for nondelivery, and if the financial
-2-1organization maintains a record of all returned electronic
2messaging.
3 Sec. 8. Section 556.2, subsection 3, Code 2022, is amended
4to read as follows:
53. Any property described in subsections 1 and 2 which is
6automatically renewable is matured for purposes of subsections
71 and 2 upon the expiration of its initial time period, but in
8the case of any renewal to which the owner consents at or about
9the time of renewal by communicating in writing or through
10electronic messaging with the banking or financial organization
11or otherwise indicating consent as evidenced by a memorandum
12or other record on file prepared by an employee of the
13organization, the property is matured upon the expiration of
14the last time provided for which consent was given. However,
15consent to renewal is deemed to have been given if the owner is
16sent written notice of the renewal by first class mail which
17requests an address correction on the face of the envelope,
18the notice is not returned for nondelivery, and the banking
19or financial organization maintains a record of all returned
20mail, or if the owner is sent written notice of the renewal
21through electronic messaging and the banking or financial
22organization maintains a record of all returned electronic
23messaging and the notice is not returned to the banking or
24financial organization. If at the time period for delivery
25in section 556.13, a penalty or forfeiture in the payment of
26interest would result from the delivery of the property, the
27time period for delivery is extended until the time when no
28penalty or forfeiture would result.
29 Sec. 9. Section 556.2, subsection 5, paragraphs a and b,
30Code 2022, are amended to read as follows:
31a. A banking organization or financial organization shall
32send to the owner of each account, to which none of the actions
33specified in subsection 1, paragraphs “a” through “e” or
34subsection 2, paragraphs “a” through “e” have occurred during
35the preceding three calendar years, a notice by certified
-3-1mail or through electronic messaging stating in substance the
2following:
3According to our records, we have had no contact with you
4regarding (describe account) for more than three years. Under
5Iowa law, if there is a period of three years without contact,
6we may be required to transfer this account to the custody of
7the treasurer of state of Iowa as unclaimed property. You
8may prevent this by taking some action, such as a deposit or
9withdrawal, which indicates your interest in this account or by
10signing this form and returning it to us.
11I desire to keep the above account open and active.
12.........
13Your signature
14b. The notice required under this section shall be mailed
15 sent within thirty days of the lapse of the three-year period
16in which there is no activity. The cost of the certified mail
17of the notice required in this section may be deducted from the
18account by the banking or financial organization.
19 Sec. 10. APPLICABILITY. This Act applies to electronic
20messaging sent or received on or after the effective date of
21this Act.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill relates to electronic communication regarding
26property that is assumed to be abandoned for purposes of
27property held by a bank, financial institution, or business
28association.
29The bill defines “electronic messaging” to mean
30electronic mail, text messaging, or other electronic means of
31communication, including an online banking website application.
32The bill provides that methods of communication between
33an owner of specified forms of property and a banking or
34financial organization or by a business association that can,
35if certain circumstances are met, prevent the property from
-4-1being considered abandoned include electronic messaging along
2with correspondence in writing. The bill also provides that
3consent for renewal of previously held property between an
4owner and a banking or financial organization or a business
5association can be considered effective if notice was sent by
6electronic messaging and the notice is not returned to the bank
7for nondelivery.
8The bill applies to electronic messaging sent or received on
9or after the effective date of the bill.
-5-es/rn
2disposition of unclaimed property and including
3applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 556.1, Code 2022, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 3A. “Electronic messaging” means
4communication conducted through electronic mail, text message,
5or other electronic means, including but not limited to an
6online banking website application.
7 Sec. 2. Section 556.2, subsection 1, paragraph b, Code 2022,
8is amended to read as follows:
9b. Corresponded in writing or through electronic messaging
10 with the banking organization concerning the deposit.
11 Sec. 3. Section 556.2, subsection 1, paragraph d,
12subparagraphs (1) and (2), Code 2022, are amended to read as
13follows:
14(1) Communicated in writing or through electronic messaging
15 with the bank.
16(2) Otherwise indicated an interest as evidenced by a
17memorandum or other record on file prepared by an employee of
18the bank and if the bank communicates in writing or through
19electronic messaging with the owner with regard to the property
20that would otherwise be abandoned under this subsection at the
21physical address, electronic mail address, or phone number on
22file with the banking organization to which communications
23regarding the other relationship are regularly sent, including
24electronic messaging.
25 Sec. 4. Section 556.2, subsection 1, paragraph e, Code 2022,
26is amended to read as follows:
27e. Been sent any written correspondence, notice, or
28information by first class mail regarding the deposit by
29the banking organization on or after July 1, 1992, if the
30correspondence, notice, or information requests an address
31correction on the face of the envelope, and is not returned
32to the bank organization for nondelivery, and if the bank
33organization maintains a record of all returned mail, or
34been sent any correspondence, notice, or information through
35electronic messaging, and is not returned electronically to
-1-1the banking organization for nondelivery, and if the bank
2organization maintains a record of all returned electronic
3messaging.
4 Sec. 5. Section 556.2, subsection 2, paragraph b, Code 2022,
5is amended to read as follows:
6b. Corresponded in writing or through electronic messaging
7 with the financial organization concerning the funds or
8deposit.
9 Sec. 6. Section 556.2, subsection 2, paragraph d,
10subparagraphs (1) and (2), Code 2022, are amended to read as
11follows:
12(1) Communicated in writing or through electronic messaging
13 with the financial organization.
14(2) Otherwise indicated an interest as evidenced by a
15memorandum or other record on file prepared by an employee of
16the financial organization and if the financial organization
17communicates in writing or through electronic messaging with
18the owner with regard to the property that would otherwise
19be abandoned under this subsection at the physical address
20or electronic mail address or phone number on file with the
21financial organization to which communications regarding the
22other relationship are regularly sent, or messages sent through
23other electronic means.
24 Sec. 7. Section 556.2, subsection 2, paragraph e, Code 2022,
25is amended to read as follows:
26e. Been sent any written correspondence, notice, or
27information by first class mail regarding the funds or deposits
28by the financial organization on or after July 1, 1992, if the
29correspondence, notice, or information requests an address
30correction on the face of the envelope, and is not returned
31to the financial organization for nondelivery, and if the
32financial organization maintains a record of all returned mail,
33or been sent any correspondence, notice, or information through
34electronic messaging, and is not returned electronically to the
35financial organization for nondelivery, and if the financial
-2-1organization maintains a record of all returned electronic
2messaging.
3 Sec. 8. Section 556.2, subsection 3, Code 2022, is amended
4to read as follows:
53. Any property described in subsections 1 and 2 which is
6automatically renewable is matured for purposes of subsections
71 and 2 upon the expiration of its initial time period, but in
8the case of any renewal to which the owner consents at or about
9the time of renewal by communicating in writing or through
10electronic messaging with the banking or financial organization
11or otherwise indicating consent as evidenced by a memorandum
12or other record on file prepared by an employee of the
13organization, the property is matured upon the expiration of
14the last time provided for which consent was given. However,
15consent to renewal is deemed to have been given if the owner is
16sent written notice of the renewal by first class mail which
17requests an address correction on the face of the envelope,
18the notice is not returned for nondelivery, and the banking
19or financial organization maintains a record of all returned
20mail, or if the owner is sent written notice of the renewal
21through electronic messaging and the banking or financial
22organization maintains a record of all returned electronic
23messaging and the notice is not returned to the banking or
24financial organization. If at the time period for delivery
25in section 556.13, a penalty or forfeiture in the payment of
26interest would result from the delivery of the property, the
27time period for delivery is extended until the time when no
28penalty or forfeiture would result.
29 Sec. 9. Section 556.2, subsection 5, paragraphs a and b,
30Code 2022, are amended to read as follows:
31a. A banking organization or financial organization shall
32send to the owner of each account, to which none of the actions
33specified in subsection 1, paragraphs “a” through “e” or
34subsection 2, paragraphs “a” through “e” have occurred during
35the preceding three calendar years, a notice by certified
-3-1mail or through electronic messaging stating in substance the
2following:
3According to our records, we have had no contact with you
4regarding (describe account) for more than three years. Under
5Iowa law, if there is a period of three years without contact,
6we may be required to transfer this account to the custody of
7the treasurer of state of Iowa as unclaimed property. You
8may prevent this by taking some action, such as a deposit or
9withdrawal, which indicates your interest in this account or by
10signing this form and returning it to us.
11I desire to keep the above account open and active.
12.........
13Your signature
14b. The notice required under this section shall be mailed
15 sent within thirty days of the lapse of the three-year period
16in which there is no activity. The cost of the certified mail
17of the notice required in this section may be deducted from the
18account by the banking or financial organization.
19 Sec. 10. APPLICABILITY. This Act applies to electronic
20messaging sent or received on or after the effective date of
21this Act.
22EXPLANATION
23The inclusion of this explanation does not constitute agreement with
24the explanation’s substance by the members of the general assembly.
25This bill relates to electronic communication regarding
26property that is assumed to be abandoned for purposes of
27property held by a bank, financial institution, or business
28association.
29The bill defines “electronic messaging” to mean
30electronic mail, text messaging, or other electronic means of
31communication, including an online banking website application.
32The bill provides that methods of communication between
33an owner of specified forms of property and a banking or
34financial organization or by a business association that can,
35if certain circumstances are met, prevent the property from
-4-1being considered abandoned include electronic messaging along
2with correspondence in writing. The bill also provides that
3consent for renewal of previously held property between an
4owner and a banking or financial organization or a business
5association can be considered effective if notice was sent by
6electronic messaging and the notice is not returned to the bank
7for nondelivery.
8The bill applies to electronic messaging sent or received on
9or after the effective date of the bill.
-5-es/rn