SB 231: "An Act shortening the time periods after which certain unclaimed property is presumed to be abandoned; and providing for an effective date."
00 SENATE BILL NO. 231 01 "An Act shortening the time periods after which certain unclaimed property is 02 presumed to be abandoned; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 34.45.110(a) is amended to read: 05 (a) Except as otherwise provided in AS 34.45.120 - 34.45.780, all intangible 06 property, including income or increment derived from the property, less lawful 07 charges, that is held, issued, or owing in the ordinary course of a holder's business and 08 has remained unclaimed by the owner for more than three [FIVE] years after 09 becoming payable or distributable is presumed abandoned. 10 * Sec. 2. AS 34.45.140(b) is amended to read: 11 (b) Subject to (d) of this section, money payable on a money order or similar 12 written instrument, other than a third-party bank check, that has been outstanding for 13 more than five [SEVEN] years after its issuance is presumed abandoned unless the 14 owner, within the preceding five [SEVEN] years, has communicated in writing with
01 the issuer concerning it or otherwise indicated an interest as evidenced by a 02 memorandum or other record, on file, prepared by an employee of the issuer. 03 * Sec. 3. AS 34.45.150(a) is amended to read: 04 (a) Other than money payable on an instrument that is subject to 05 AS 34.45.140, money payable on a check, draft, or similar instrument on which a 06 banking or financial organization is directly liable, including a cashier's check and a 07 certified check, that has been outstanding for more than five [SEVEN] years after it 08 was payable or after its issuance if payable on demand, is presumed abandoned. This 09 presumption does not apply if the owner, within the preceding five [SEVEN] years, 10 has communicated in writing with the banking or financial organization concerning 11 the instrument or has otherwise indicated an interest as evidenced by a memorandum 12 or other record, on file, prepared by an employee of the organization. 13 * Sec. 4. AS 34.45.160(a) is amended to read: 14 (a) A demand, savings, or matured time deposit with a banking or financial 15 organization, including a deposit that is automatically renewable, and money paid 16 toward the purchase of a share, a mutual investment certificate, or other intangible 17 property interest in a banking or financial organization is presumed abandoned unless 18 the owner, within the preceding five [SEVEN] years, has 19 (1) in the case of a deposit, increased or decreased its amount or 20 presented the passbook or other similar evidence of the deposit for the crediting of 21 interest; 22 (2) communicated in writing with the banking or financial organization 23 concerning the property; 24 (3) otherwise indicated an interest in the property as evidenced by a 25 memorandum or other record, on file, prepared by an employee of the banking or 26 financial organization; 27 (4) owned other property to which (1), (2), or (3) of this subsection 28 applies and the banking or financial organization has communicated in writing with 29 the owner with regard to the property that would otherwise be presumed abandoned 30 under this subsection at the address to which communications regarding the other 31 property are regularly sent; or
01 (5) had another relationship with the banking or financial organization 02 concerning which the owner has 03 (A) communicated in writing with the banking or financial 04 organization or otherwise indicated an interest as evidenced [EVIDENCE] by 05 a memorandum or other record, on file, prepared by an employee of the 06 banking or financial organization; and 07 (B) the banking or financial organization communicates in 08 writing with the owner with regard to the property that would otherwise be 09 abandoned under this subsection at the address to which communications 10 regarding the other relationship regularly are sent. 11 * Sec. 5. AS 34.45.170(a) is amended to read: 12 (a) Money held or owing under a life or endowment insurance policy or 13 annuity contract that has matured or terminated is presumed abandoned if unclaimed 14 for more than three [FIVE] years after the money became due and payable as 15 established from the records of the insurance company holding or owing the money. 16 However, property described in (c)(2) of this section is presumed abandoned if 17 unclaimed for more than two years. 18 * Sec. 6. AS 34.45.200(a) is amended to read: 19 (a) Except as otherwise provided in AS 34.45.210 and (b), (e), and (f) of this 20 section, stock or other intangible ownership interest in a business association, the 21 existence of which is evidenced by records available to the association, is presumed 22 abandoned and, with respect to the ownership interest, the association is the holder, if 23 a dividend, distribution, or other money payable as a result of the interest has 24 remained unclaimed by the owner for five [SEVEN] years after the money became 25 payable, and the owner, within that five [SEVEN] years, has not 26 (1) communicated in writing with the association regarding the 27 ownership interest or a dividend, distribution, or other money payable as a result of the 28 interest; or 29 (2) otherwise communicated with the association regarding the 30 ownership interest or a dividend, distribution, or other money payable as a result of the 31 interest, as evidenced by a memorandum or other record, on file with the association,
01 prepared by an employee of the association. 02 * Sec. 7. AS 34.45.200(b) is amended to read: 03 (b) At the expiration of a five-year [SEVEN-YEAR] period following the 04 failure of the owner to claim a dividend, distribution, or other money payable to the 05 owner as a result of the ownership interest, the interest is not presumed abandoned 06 unless there have been at least five [SEVEN] dividends, distributions, or other 07 payments paid during the period, none of which has been claimed by the owner. If 08 five [SEVEN] dividends, distributions, or other payments are paid during the five- 09 year [SEVEN-YEAR] period, the ownership interest is presumed abandoned at the 10 end of the five-year [SEVEN-YEAR] period. If five [SEVEN] dividends, 11 distributions, or other payments are not paid during the five-year [SEVEN-YEAR] 12 period, the period continues to run until there have been five [SEVEN] dividends, 13 distributions, or other payments that have not been claimed by the owner. 14 * Sec. 8. AS 34.45.200(c) is amended to read: 15 (c) The running of the five-year [SEVEN-YEAR] period of abandonment 16 ceases immediately upon the occurrence of a communication described in (a) of this 17 section. If a subsequent dividend, distribution, or other money payable to the owner as 18 a result of the ownership interest is not claimed by the owner, a new five-year 19 [SEVEN-YEAR] period of abandonment commences at the time that subsequent 20 dividend, distribution, or other money became due and payable. 21 * Sec. 9. AS 34.45.200(e) is amended to read: 22 (e) Stock or other intangible ownership interest enrolled in a plan that provides 23 for the automatic reinvestment of dividends, distributions, or other money payable as a 24 result of the interest is presumed abandoned if the owner has not communicated 25 (1) in a manner described in (a) of this section; or 26 (2) within five [SEVEN] years after 27 (A) the date of the second mailing of a statement of account or 28 other notification or communication that was returned as undeliverable; or 29 (B) the holder discontinued mailings, notifications, or 30 communications to the apparent owner. 31 * Sec. 10. AS 34.45.220(a) is amended to read:
01 (a) Intangible property and income or increment derived from the intangible 02 property held in a fiduciary capacity for the benefit of another person is presumed 03 abandoned unless the owner, within three [FIVE] years after it has become payable or 04 distributable, has increased or decreased the principal, accepted payment of principal 05 or income, communicated concerning the property, or otherwise indicated an interest 06 as evidenced by a memorandum or other record, on file, prepared by the fiduciary. 07 * Sec. 11. AS 34.45.240(a) is amended to read: 08 (a) A gift certificate or a credit memo, issued in the ordinary course of an 09 issuer's business, that remains unclaimed by the owner for more than three [FIVE] 10 years after becoming payable or distributable is presumed abandoned. 11 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 APPLICABILITY. The changes made by this Act apply to property that meets either 14 of the following: 15 (1) property that, on the effective date of this Act, already was subject to a 16 statutory provision amended by this Act; 17 (2) property that, on or after the effective date of this Act, becomes subject to 18 a statutory provision amended by this Act. 19 * Sec. 13. This Act takes effect June 29, 2003.