Bill Text: NY A03858 | 2019-2020 | General Assembly | Introduced
Bill Title: Extends the term for claiming unclaimed property from three to five years.
Spectrum: Partisan Bill (Democrat 24-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A03858 Detail]
Download: New_York-2019-A03858-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3858 2019-2020 Regular Sessions IN ASSEMBLY January 31, 2019 ___________ Introduced by M. of A. MAGNARELLI -- read once and referred to the Committee on Ways and Means AN ACT to amend the abandoned property law, in relation to extending the term for claiming unclaimed property from three to five years The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs (a), (b), (c), (d), (e), (f), (g), (i) and (k) 2 of subdivision 1 of section 300 of the abandoned property law, para- 3 graphs (a), (b) and (k) as amended by section 1 of part A of chapter 61 4 of the laws of 2011, paragraph (c) as amended by section 5 of part T of 5 chapter 62 of the laws of 2006, paragraph (d) as amended by chapter 48 6 of the laws of 1978, paragraphs (e) and (f) as amended by chapter 41 of 7 the laws of 1987 and paragraphs (g) and (i) as added by chapter 15 of 8 the laws of 1983, are amended to read as follows: 9 (a) Any amounts due on deposits or any amounts to which a shareholder 10 of a savings and loan association or a credit union is entitled, held or 11 owing by a banking organization, which shall have remained unclaimed for 12 [three] five years by the person or persons appearing to be entitled 13 thereto, including any interest or dividends credited thereon, excepting 14 (i) any such amount which has been reduced or increased, exclusive of 15 dividend or interest payment, within [three] five years, or 16 (ii) any such amount which is represented by a passbook not in the 17 possession of the banking organization, which has been presented for 18 entry of dividend or interest credit within [three] five years, or 19 (iii) any such amount with respect to which the banking organization 20 has on file written evidence received within [three] five years that the 21 person or persons appearing to be entitled to such amounts had knowledge 22 thereof, or 23 (iv) any such amount payable only at or by a branch office located in 24 a foreign country, or payable in currency other than United States 25 currency, or 26 (v) any such amount that is separately identifiable and has been set 27 aside to meet the burial and related expenses of an individual, provided 28 however that said amount shall be deemed abandoned property where it EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08296-01-9A. 3858 2 1 remains unclaimed for [three] five years subsequent to the death of the 2 individual for whom the amount was deposited. 3 (b) Any amounts, together with all accumulations of interest or other 4 increment thereon, held or owing by a banking organization for the 5 payment of an interest in a bond and mortgage apportioned or transferred 6 by it pursuant to subdivision seven of former section one hundred eight- 7 y-eight of the banking law as it existed prior to July first, nineteen 8 hundred thirty-seven, which shall have remained unclaimed by the person 9 or persons appearing to be entitled thereto for [three] five years after 10 the full and final liquidation of such mortgage, excepting 11 (i) any such amount which has been reduced by payment to the person or 12 persons appearing to be entitled thereto within [three] five years, or 13 (ii) any such amount which is represented by a certificate of share 14 ownership not in the possession of the banking organization, which 15 certificate has been presented for transfer within [three] five years, 16 or 17 (iii) any such amount with respect to which the banking organization 18 has on file written evidence received within [three] five years that the 19 person or persons appearing to be entitled to such amount had knowledge 20 thereof. 21 (c) Any amount held or owing by a banking organization for the payment 22 of a negotiable instrument under article three of the uniform commercial 23 code or a certified check whether negotiable or not, on which such 24 organization is directly liable, which instrument shall have been 25 outstanding for more than [three] five years from the date it was paya- 26 ble or from the date of its issuance, if payable on demand; provided, 27 however, the provisions of this paragraph shall not apply 28 (i) to any negotiable instrument payable outside the continental 29 limits of the United States, or 30 (ii) to any instrument payable in currency other than United States 31 currency. 32 (d) After the expiration of [three] five years from the opening of any 33 vault, safe deposit box or other receptacle by a banking organization 34 pursuant to the provisions of the banking law, any surplus amounts aris- 35 ing from a sale by such banking organization of the contents of such 36 vault, safe deposit box or other receptacle pursuant to the provisions 37 of the banking law, the balance remaining of any United States coin or 38 currency among the contents of such vault, safe deposit box or other 39 receptacle and the balance remaining of the proceeds of the principal of 40 or interest or dividends on any securities among the contents of such 41 vault, safe deposit box or other receptacle or the securities themselves 42 which have remained unsold by the banking organization. 43 (e) Any amount or security representing a dividend or other payment 44 received (i) after June thirtieth, nineteen hundred forty, by a banking 45 organization or its nominee as the record holder of any stock, bond, or 46 other security of any corporation, association or joint stock company to 47 which amount or security an unknown person (except a person entitled to 48 such dividend or other payment upon the surrender of other outstanding 49 securities) is entitled or (ii) on or after July first, nineteen hundred 50 seventy-four by a banking organization or its nominee other than as a 51 holder of record or as holder of record for known persons on any stock, 52 bond or other security of any corporation, association or joint stock 53 company or (iii) on or after July first, nineteen hundred eighty-four by 54 a banking organization or its nominee on any stock, bond, or other secu- 55 rity of a governmental or other public issuer, (1) which shall have 56 remained unclaimed by the person entitled thereto for [three] five yearsA. 3858 3 1 after receipt thereof by such banking organization or its nominee, or 2 (2) when the stock, bond or other security with respect to which such 3 amount or security representing a dividend or other payment is payable 4 has been deemed abandoned. 5 (f) Except as provided in paragraph (e) of this subdivision, any 6 stock, bond or other security of any corporation, association or joint 7 stock company received on or after July first, nineteen hundred seven- 8 ty-seven or any stock, bond or other security of any governmental or 9 other public issuer received on or after July first, nineteen hundred 10 eighty-four by a banking organization or its nominee and held by such 11 banking organization or its nominee (1) as holder of record of such 12 stock, bond or other security, or (2) as custodian, trustee or fiduciary 13 for a person other than the issuer with respect to such stock, bond or 14 other security, or (3) for unknown persons where, for [three] five 15 successive years, (i) all amounts payable upon such stocks, bonds, or 16 other securities of any corporation, association or joint stock company 17 and received by such banking organization or its nominee on or after 18 July first, nineteen hundred seventy-seven or all amounts payable upon 19 such stocks, bonds, or other securities of any governmental or other 20 public issuer and received by such banking organization or its nominee 21 on or after July first, nineteen hundred eighty-four have remained 22 unclaimed by the person entitled thereto, and (ii) no written communi- 23 cation concerning such stock, bond or other security has been received 24 from the person entitled thereto by such banking organization or its 25 nominee. 26 (g) Any stock, bond, or other security held by a banking organization 27 in any vault or other storage area in any capacity other than as set 28 forth in paragraphs (d), (e) or (f) of this subdivision where, for 29 [three] five successive years, (i) such stock, bond, or other security 30 has remained unclaimed by the person entitled thereto, and (ii) no writ- 31 ten communication concerning such stock, bond or other security has been 32 received from the person entitled thereto by such banking organization. 33 (i) Any amount or security which shall have become payable or deliver- 34 able by a banking organization, as agent or trustee for a corporation, 35 association or joint stock company which shall have discontinued the 36 conduct of its business, or the corporate existence of which shall have 37 terminated, without the right to receive such amount having passed to a 38 successor or successors, and which shall have remained unpaid or unde- 39 livered to the person or persons entitled thereto for [three] five 40 years. 41 (k) Lost property or instruments as defined in section two hundred 42 fifty-one of the personal property law which shall have been held by a 43 safe deposit company or bank for [three] five years pursuant to the 44 provisions of section two hundred fifty-six of the personal property 45 law. 46 § 2. Subdivisions 1, 2 and 3 of section 501 of the abandoned property 47 law, subdivisions 1 and 2 as added by chapter 166 of the laws of 1991, 48 paragraph (b) of subdivision 1 as amended by section 2 of part T of 49 chapter 62 of the laws of 2006, paragraph (a) of subdivision 2 as 50 amended by section 3 of part T of chapter 62 of the laws of 2006, 51 subparagraph (i) of paragraph (b) of subdivision 2 as amended by section 52 4 of part T of chapter 62 of the laws of 2006 and subdivision 3 as 53 amended by chapter 61 of the laws of 1989, are amended to read as 54 follows: 55 1. (a) Any amount which, on or after January first, nineteen hundred 56 forty-seven, shall have become payable or distributable by a domestic,A. 3858 4 1 foreign or public corporation or by a fiduciary to a resident as the 2 owner or former owner of a security as defined in paragraph (a) of 3 subdivision two of section five hundred of this article, shall be deemed 4 abandoned when the security with respect to which such amount is payable 5 or distributable has been deemed abandoned, or when such amount: 6 (i) is payable or distributable to such resident as the owner or 7 former owner of such security; and 8 (ii) has, on the thirty-first day of December in any year, remained 9 unpaid to or unclaimed by such resident for a period of [three] five 10 years. For the purposes of this article, a security as defined in para- 11 graph (a) of subdivision two of section five hundred of this article 12 shall not be deemed abandoned until a period of [three] five years has 13 elapsed from the earlier of the maturity date of such security or the 14 date such security has been called for redemption. 15 (b) Any amount which, on or after January first, nineteen hundred 16 forty-seven shall have become payable or distributable by a domestic or 17 foreign corporation or a fiduciary to a resident as the owner or former 18 owner of a security as defined in paragraph (b) of subdivision two of 19 section five hundred of this article, shall be deemed abandoned when the 20 security with respect to which such amount is payable or distributable 21 has been deemed abandoned or when such amount: 22 (i) is payable or distributable to such resident as the owner or 23 former owner of such security; and 24 (ii) has, on the thirty-first day of December in any year, remained 25 unpaid to or unclaimed by such resident for a period of [three] five 26 years. 27 2. (a) Except as provided in paragraph (b) of this subdivision, any 28 security, as defined in paragraph (b) of subdivision two of section five 29 hundred of this article, of any domestic corporation or foreign corpo- 30 ration owned by or formerly owned by a resident shall be deemed aban- 31 doned where, for [three] five successive years: 32 (i) all amounts, if any, payable or distributable thereon or with 33 respect thereto have remained unpaid to or unclaimed by such resident, 34 and 35 (ii) no written communication has been received from such resident by 36 the holder. 37 (b) (i) Any security, as defined in paragraph (b) of subdivision two 38 of section five hundred of this article, of any domestic or foreign 39 corporation in which a resident has an ownership interest and which is 40 enrolled in a plan that provides for the automatic reinvestment of divi- 41 dends, distributions, or other sums payable as the result of such inter- 42 est shall be deemed abandoned when any security owned by such resident 43 which is not enrolled in the plan has been deemed abandoned pursuant to 44 paragraph (a) of this subdivision or when, for [three] five successive 45 years: 46 (1) all amounts, if any, payable thereon or with respect thereto have 47 remained unpaid to or unclaimed by such resident, and 48 (2) no written communication has been received from such resident by 49 the holder, and 50 (3) the holder does not know the location of such resident at the end 51 of such [three] five year period. 52 (ii) For purposes of this paragraph, the reinvestment of any dividend, 53 distribution or other sum payable shall not be considered as payment of 54 an amount for the purpose of extending the statutory period of inactiv- 55 ity after the expiration of which securities enrolled in a reinvestment 56 plan are deemed abandoned.A. 3858 5 1 (iii) Any corporation or fiduciary holding or evidencing on its books 2 and records securities enrolled in a reinvestment plan shall notify the 3 apparent owner by certified mail that such securities will be delivered 4 to the state comptroller as abandoned property, pursuant to the 5 provisions of section five hundred two of this article, unless such 6 corporation or fiduciary receives written communication from the appar- 7 ent owner of such securities indicating knowledge of such securities 8 prior to the date that such securities are required to be delivered to 9 the state comptroller. Such letter by certified mail shall be sent 10 during the calendar year prior to the year in which such property would 11 be required to be delivered to the state comptroller, but no later than 12 the thirty-first day of December of such year. For purposes of this 13 subdivision, a signed return receipt shall constitute written communi- 14 cation received by the holder from the apparent owner. 15 (iv) All corporations or fiduciaries holding or evidencing on its 16 books and records securities enrolled in a reinvestment plan shall 17 retain, for a period of five years following the thirty-first day of 18 December of the year for which a report of abandoned property has been 19 filed, a list of (1) the dates and nature of any and all corporate 20 notices which have been sent via first class mail to owners of such 21 securities during the period to which such report relates, and (2) the 22 names and addresses of all owners of such securities for whom postal 23 authorities have returned any first class mail sent by the holder during 24 the period to which such report relates, and the dates on which such 25 mail was returned for each such owner. Nothing contained herein or in 26 any other provision of this chapter shall preclude the state comp- 27 troller, in the performance of his duties under this chapter, from veri- 28 fying that all such notices have been sent and whether or not such 29 notices have been returned to the holder by the postal authorities. 30 3. Any wages payable on or after July first, nineteen hundred sixty- 31 three by a domestic or foreign corporation and held for a resident by 32 such issuing corporation or held and payable by a fiduciary other than a 33 broker or dealer as defined in section five hundred ten of this chapter 34 for a resident shall be deemed to be abandoned property, where for 35 [three] five successive years: 36 (a) All such wages have remained unpaid to such resident, and 37 (b) No written communication has been received from such resident by 38 the holder, and 39 (c) Notice regarding such wages has been sent by the corporation or 40 fiduciary, via first class mail, to such resident at his last known 41 address and such notice has been returned to the corporation or fiduci- 42 ary by the postal authorities for inability to locate such resident. 43 § 3. Subdivisions 1, 1-a, 2, 3, 4 and 5 of section 511 of the aban- 44 doned property law, subdivisions 1, 2, 3 and 4 as amended by chapter 617 45 of the laws of 1973 and subdivisions 1-a and 5 as amended by chapter 767 46 of the laws of 1983, are amended to read as follows: 47 1. Any amount (a) received in this state after June thirtieth, nine- 48 teen hundred forty-six by a broker or dealer or nominee of such broker 49 or dealer as the holder of record of a security remaining unpaid to the 50 person entitled thereto for [three] five years following the receipt 51 thereof, or (b) when paid to such broker, dealer or nominee on or with 52 respect to a security which has been deemed abandoned. 53 1-a. Any amount (a) received in this state on or after July first, 54 nineteen hundred seventy-four by a broker or dealer or nominee of such 55 broker or dealer other than as the holder of record of a security 56 remaining unpaid to the person entitled thereto for [three] five yearsA. 3858 6 1 following the receipt thereof, or (b) when paid to such broker, dealer 2 or nominee on or with respect to a security which has been deemed aban- 3 doned. 4 2. Any amount (a) received in this state after June thirtieth, nine- 5 teen hundred forty-six due from a broker or dealer or nominee of such 6 broker or dealer to a customer which has remained unpaid to the customer 7 for [three] five years after the date of the last entry, other than the 8 receipt of dividends or interest in the account of such broker, dealer 9 or nominee with such customer, or (b) payable on or with respect to a 10 security which has been deemed abandoned. 11 3. Any security held in this state by a broker or dealer, or nominee 12 of such broker or dealer, as the holder of record of a security for a 13 customer or for a person or persons unknown to such broker or dealer or 14 nominee where, for [three] five successive years, all amounts paid ther- 15 eon or with respect thereto and received after June thirtieth, nineteen 16 hundred forty-six by such broker or dealer or nominee have remained 17 unclaimed. Provided, however, that if any amount or security specified 18 in this subdivision or subdivision one[,] or subdivision two [or three] 19 of this section is reflected, recorded, or included in an account with 20 respect to which such broker or dealer has on file evidence in writing 21 received within the [three] five years immediately preceding the thir- 22 ty-first day of December preceding the date such amount or security 23 would otherwise be payable or deliverable pursuant to section five 24 hundred twelve of this article that the person entitled thereto had 25 knowledge of such account, then such amount or security shall not be 26 deemed abandoned property. 27 4. Any security held by a broker or dealer or nominee of such broker 28 or dealer reflected, recorded, or included in an account with respect to 29 which, for [three] five successive years, all statements of account or 30 other communications which have been sent, via first class mail, to the 31 customer at his last known address have been returned to such broker, 32 dealer or nominee by the postal authorities for inability to locate the 33 customer, and no written communication has been received from the 34 customer by such broker, dealer or nominee, provided such security was 35 received or is held in this state by such broker, dealer or nominee or 36 the last known address of the customer is located in this state. 37 5. Any wages held and payable on or after July first, nineteen hundred 38 sixty-six by a broker or dealer, as defined in section five hundred ten 39 of this article, for the benefit of a person or persons, known or 40 unknown shall be deemed to be abandoned property, where for [three] five 41 successive years: 42 (a) All such wages have remained unpaid to such person, and 43 (b) No written communication has been received from such person by the 44 holder, and 45 (c) Notice regarding such wages, if sent by the broker or dealer, via 46 first class mail, to such person at his last known address has been 47 returned to the broker or dealer by the postal authorities for inability 48 to locate such person. 49 § 4. Subdivision 1 of section 700 of the abandoned property law, as 50 amended by chapter 695 of the laws of 1964, paragraphs (a) and (c) as 51 amended by chapter 78 of the laws of 1976, paragraph (b) as amended by 52 section 13 of part A of chapter 61 of the laws of 2011, paragraph (d) as 53 amended by chapter 767 of the laws of 1983 and paragraph (e) as added 54 and paragraph (f) as amended by chapter 61 of the laws of 1989, is 55 amended to read as follows:A. 3858 7 1 1. The following unclaimed property held or owing by life insurance 2 corporations shall be deemed abandoned property: 3 (a) Any moneys held or owing by any life insurance corporation which 4 shall have remained unclaimed for [three] five years by the person or 5 persons appearing to be entitled thereto under matured life insurance 6 policies on the endowment plan and which are payable to any person whose 7 last-known address, according to the records of the corporation, is 8 within this state. 9 (b) Any moneys held or owing by any life insurance corporation which 10 are payable under other kinds of life insurance policies to any person 11 whose last-known address, according to the records of the corporation, 12 is within this state, where the insured, if living, would have attained 13 the limiting age under the mortality table on which the reserves are 14 based, exclusive of 15 (i) any policy which has within [three] five years been assigned, 16 readjusted, kept in force by payment of premium, reinstated or subjected 17 to loan, or 18 (ii) any policy with respect to which such corporation has on file 19 written evidence received within [three] five years that the person or 20 persons apparently entitled to claim thereunder have knowledge thereof. 21 (c) Any moneys held or owing by any life insurance corporation due to 22 beneficiaries or other persons entitled thereto under policies on the 23 lives of persons who have died where the last-known address, according 24 to the records of the corporation, of the person or persons appearing to 25 be entitled thereto is within this state, which moneys shall have 26 remained unclaimed by the person or persons entitled thereto for [three] 27 five years. 28 (d) Any other moneys which are held or owing by any life insurance 29 corporation on or after July first, nineteen hundred sixty-seven consti- 30 tuting or representing refunds of any kind due upon or in connection 31 with life insurance policies payable to any person whose last known 32 address, according to the records of the corporation, is within this 33 state, which moneys shall have remained unclaimed by the person entitled 34 thereto for [three] five years. 35 (e) Any moneys held or owing by any life insurance corporation on or 36 after July first, nineteen hundred eighty-three upon or in connection 37 with an annuity contract payable to any person whose last-known address, 38 according to the records of the corporation, is within this state, which 39 moneys shall have remained unclaimed by the person entitled thereto for 40 [three] five years. 41 (f) If no address of the person or persons appearing to be entitled to 42 the unclaimed funds pursuant to paragraph (a), (b), (c), (d) or (e) of 43 this subdivision is known to such corporation, or if it is not definite 44 and certain from the records of such corporation what person is entitled 45 to such funds, it shall be presumed that the last-known address of the 46 person entitled to such funds is the same as the last-known address of 47 the insured or annuitant according to the records of such corporation. 48 Where no address can be ascertained, pursuant to this paragraph, for the 49 insured, annuitant or person or persons entitled to the unclaimed funds, 50 such person's last-known address shall be presumed to be within this 51 state if the unclaimed funds are held or owing by life insurance corpo- 52 ration organized under the laws of this state. 53 § 5. This act shall take effect immediately.
