NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A224
SPONSOR: Magnarelli TITLE OF BILL:
An act to amend the abandoned property law, in relation to extending the
term for claiming unclaimed property from three to five years
PURPOSE:
To extend the time periods in the Abandoned Property Law for dormancy of
account from three to five years.
SUMMARY OF PROVISIONS:
Section 1 amends the times periods of three years to five years for
section 300 of the Abandoned Property Law.
Section 2 amends the times periods of three years to five years for
section 501 of the Abandoned Property Law.
Section 3 amends the times periods Of three years.to five years for
section 511 of the Abandoned Property Law.
Section 4 amends the times periods of three years to five years for
section 700 of the Abandoned Property Law.
Section 5 establishes the effective date.
EXISTING LAW:
Currently, three years of inactivity of many accounts will cause the
account to escheat to the State.
JUSTIFICATION:
Federal law requires State law to set a time period past which funds
from accounts may escheat to the State. Current New York State law is
set at three years, the shortest period in the nation shared by only a
few states. Most states provide for a five-year period before which an
inactive account may be escheated. This bill would set New York law's
time period to five years, providing more time for people to access old
accounts and grow investment accounts for beneficiaries without having
to reclaim their own money from the State.
LEGISLATIVE HISTORY:
2015-16: A.10530
2017-18: A.3266
2019-20: A.3858
2021-22: A.1290
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
Immediately
STATE OF NEW YORK
________________________________________________________________________
224
2023-2024 Regular Sessions
IN ASSEMBLY(Prefiled)
January 4, 2023
___________
Introduced by M. of A. MAGNARELLI, DICKENS, STIRPE, D. ROSENTHAL,
GUNTHER, STECK, JEAN-PIERRE, COOK, WILLIAMS, SAYEGH, CRUZ -- 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00262-01-3
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1 (iv) any such amount payable only at or by a branch office located in
2 a foreign country, or payable in currency other than United States
3 currency, or
4 (v) any such amount that is separately identifiable and has been set
5 aside to meet the burial and related expenses of an individual, provided
6 however that said amount shall be deemed abandoned property where it
7 remains unclaimed for [three] five years subsequent to the death of the
8 individual for whom the amount was deposited.
9 (b) Any amounts, together with all accumulations of interest or other
10 increment thereon, held or owing by a banking organization for the
11 payment of an interest in a bond and mortgage apportioned or transferred
12 by it pursuant to subdivision seven of former section one hundred eight-
13 y-eight of the banking law as it existed prior to July first, nineteen
14 hundred thirty-seven, which shall have remained unclaimed by the person
15 or persons appearing to be entitled thereto for [three] five years after
16 the full and final liquidation of such mortgage, excepting
17 (i) any such amount which has been reduced by payment to the person or
18 persons appearing to be entitled thereto within [three] five years, or
19 (ii) any such amount which is represented by a certificate of share
20 ownership not in the possession of the banking organization, which
21 certificate has been presented for transfer within [three] five years,
22 or
23 (iii) any such amount with respect to which the banking organization
24 has on file written evidence received within [three] five years that the
25 person or persons appearing to be entitled to such amount had knowledge
26 thereof.
27 (c) Any amount held or owing by a banking organization for the payment
28 of a negotiable instrument under article three of the uniform commercial
29 code or a certified check whether negotiable or not, on which such
30 organization is directly liable, which instrument shall have been
31 outstanding for more than [three] five years from the date it was paya-
32 ble or from the date of its issuance, if payable on demand; provided,
33 however, the provisions of this paragraph shall not apply
34 (i) to any negotiable instrument payable outside the continental
35 limits of the United States, or
36 (ii) to any instrument payable in currency other than United States
37 currency.
38 (d) After the expiration of [three] five years from the opening of any
39 vault, safe deposit box or other receptacle by a banking organization
40 pursuant to the provisions of the banking law, any surplus amounts aris-
41 ing from a sale by such banking organization of the contents of such
42 vault, safe deposit box or other receptacle pursuant to the provisions
43 of the banking law, the balance remaining of any United States coin or
44 currency among the contents of such vault, safe deposit box or other
45 receptacle and the balance remaining of the proceeds of the principal of
46 or interest or dividends on any securities among the contents of such
47 vault, safe deposit box or other receptacle or the securities themselves
48 which have remained unsold by the banking organization.
49 (e) Any amount or security representing a dividend or other payment
50 received (i) after June thirtieth, nineteen hundred forty, by a banking
51 organization or its nominee as the record holder of any stock, bond, or
52 other security of any corporation, association or joint stock company to
53 which amount or security an unknown person (except a person entitled to
54 such dividend or other payment upon the surrender of other outstanding
55 securities) is entitled or (ii) on or after July first, nineteen hundred
56 seventy-four by a banking organization or its nominee other than as a
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1 holder of record or as holder of record for known persons on any stock,
2 bond or other security of any corporation, association or joint stock
3 company or (iii) on or after July first, nineteen hundred eighty-four by
4 a banking organization or its nominee on any stock, bond, or other secu-
5 rity of a governmental or other public issuer, (1) which shall have
6 remained unclaimed by the person entitled thereto for [three] five years
7 after receipt thereof by such banking organization or its nominee, or
8 (2) when the stock, bond or other security with respect to which such
9 amount or security representing a dividend or other payment is payable
10 has been deemed abandoned.
11 (f) Except as provided in paragraph (e) of this subdivision, any
12 stock, bond or other security of any corporation, association or joint
13 stock company received on or after July first, nineteen hundred seven-
14 ty-seven or any stock, bond or other security of any governmental or
15 other public issuer received on or after July first, nineteen hundred
16 eighty-four by a banking organization or its nominee and held by such
17 banking organization or its nominee (1) as holder of record of such
18 stock, bond or other security, or (2) as custodian, trustee or fiduciary
19 for a person other than the issuer with respect to such stock, bond or
20 other security, or (3) for unknown persons where, for [three] five
21 successive years, (i) all amounts payable upon such stocks, bonds, or
22 other securities of any corporation, association or joint stock company
23 and received by such banking organization or its nominee on or after
24 July first, nineteen hundred seventy-seven or all amounts payable upon
25 such stocks, bonds, or other securities of any governmental or other
26 public issuer and received by such banking organization or its nominee
27 on or after July first, nineteen hundred eighty-four have remained
28 unclaimed by the person entitled thereto, and (ii) no written communi-
29 cation concerning such stock, bond or other security has been received
30 from the person entitled thereto by such banking organization or its
31 nominee.
32 (g) Any stock, bond, or other security held by a banking organization
33 in any vault or other storage area in any capacity other than as set
34 forth in paragraphs (d), (e) or (f) of this subdivision where, for
35 [three] five successive years, (i) such stock, bond, or other security
36 has remained unclaimed by the person entitled thereto, and (ii) no writ-
37 ten communication concerning such stock, bond or other security has been
38 received from the person entitled thereto by such banking organization.
39 (i) Any amount or security which shall have become payable or deliver-
40 able by a banking organization, as agent or trustee for a corporation,
41 association or joint stock company which shall have discontinued the
42 conduct of its business, or the corporate existence of which shall have
43 terminated, without the right to receive such amount having passed to a
44 successor or successors, and which shall have remained unpaid or unde-
45 livered to the person or persons entitled thereto for [three] five
46 years.
47 (k) Lost property or instruments as defined in section two hundred
48 fifty-one of the personal property law which shall have been held by a
49 safe deposit company or bank for [three] five years pursuant to the
50 provisions of section two hundred fifty-six of the personal property
51 law.
52 § 2. Subdivisions 1, 2 and 3 of section 501 of the abandoned property
53 law, subdivisions 1 and 2 as added by chapter 166 of the laws of 1991,
54 paragraph (b) of subdivision 1 as amended by section 2 of part T of
55 chapter 62 of the laws of 2006, paragraph (a) of subdivision 2 as
56 amended by section 3 of part T of chapter 62 of the laws of 2006,
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1 subparagraph (i) of paragraph (b) of subdivision 2 as amended by section
2 4 of part T of chapter 62 of the laws of 2006 and subdivision 3 as
3 amended by chapter 61 of the laws of 1989, are amended to read as
4 follows:
5 1. (a) Any amount which, on or after January first, nineteen hundred
6 forty-seven, shall have become payable or distributable by a domestic,
7 foreign or public corporation or by a fiduciary to a resident as the
8 owner or former owner of a security as defined in paragraph (a) of
9 subdivision two of section five hundred of this article, shall be deemed
10 abandoned when the security with respect to which such amount is payable
11 or distributable has been deemed abandoned, or when such amount:
12 (i) is payable or distributable to such resident as the owner or
13 former owner of such security; and
14 (ii) has, on the thirty-first day of December in any year, remained
15 unpaid to or unclaimed by such resident for a period of [three] five
16 years. For the purposes of this article, a security as defined in para-
17 graph (a) of subdivision two of section five hundred of this article
18 shall not be deemed abandoned until a period of [three] five years has
19 elapsed from the earlier of the maturity date of such security or the
20 date such security has been called for redemption.
21 (b) Any amount which, on or after January first, nineteen hundred
22 forty-seven shall have become payable or distributable by a domestic or
23 foreign corporation or a fiduciary to a resident as the owner or former
24 owner of a security as defined in paragraph (b) of subdivision two of
25 section five hundred of this article, shall be deemed abandoned when the
26 security with respect to which such amount is payable or distributable
27 has been deemed abandoned or when such amount:
28 (i) is payable or distributable to such resident as the owner or
29 former owner of such security; and
30 (ii) has, on the thirty-first day of December in any year, remained
31 unpaid to or unclaimed by such resident for a period of [three] five
32 years.
33 2. (a) Except as provided in paragraph (b) of this subdivision, any
34 security, as defined in paragraph (b) of subdivision two of section five
35 hundred of this article, of any domestic corporation or foreign corpo-
36 ration owned by or formerly owned by a resident shall be deemed aban-
37 doned where, for [three] five successive years:
38 (i) all amounts, if any, payable or distributable thereon or with
39 respect thereto have remained unpaid to or unclaimed by such resident,
40 and
41 (ii) no written communication has been received from such resident by
42 the holder.
43 (b) (i) Any security, as defined in paragraph (b) of subdivision two
44 of section five hundred of this article, of any domestic or foreign
45 corporation in which a resident has an ownership interest and which is
46 enrolled in a plan that provides for the automatic reinvestment of divi-
47 dends, distributions, or other sums payable as the result of such inter-
48 est shall be deemed abandoned when any security owned by such resident
49 which is not enrolled in the plan has been deemed abandoned pursuant to
50 paragraph (a) of this subdivision or when, for [three] five successive
51 years:
52 (1) all amounts, if any, payable thereon or with respect thereto have
53 remained unpaid to or unclaimed by such resident, and
54 (2) no written communication has been received from such resident by
55 the holder, and
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1 (3) the holder does not know the location of such resident at the end
2 of such [three] five year period.
3 (ii) For purposes of this paragraph, the reinvestment of any dividend,
4 distribution or other sum payable shall not be considered as payment of
5 an amount for the purpose of extending the statutory period of inactiv-
6 ity after the expiration of which securities enrolled in a reinvestment
7 plan are deemed abandoned.
8 (iii) Any corporation or fiduciary holding or evidencing on its books
9 and records securities enrolled in a reinvestment plan shall notify the
10 apparent owner by certified mail that such securities will be delivered
11 to the state comptroller as abandoned property, pursuant to the
12 provisions of section five hundred two of this article, unless such
13 corporation or fiduciary receives written communication from the appar-
14 ent owner of such securities indicating knowledge of such securities
15 prior to the date that such securities are required to be delivered to
16 the state comptroller. Such letter by certified mail shall be sent
17 during the calendar year prior to the year in which such property would
18 be required to be delivered to the state comptroller, but no later than
19 the thirty-first day of December of such year. For purposes of this
20 subdivision, a signed return receipt shall constitute written communi-
21 cation received by the holder from the apparent owner.
22 (iv) All corporations or fiduciaries holding or evidencing on its
23 books and records securities enrolled in a reinvestment plan shall
24 retain, for a period of five years following the thirty-first day of
25 December of the year for which a report of abandoned property has been
26 filed, a list of (1) the dates and nature of any and all corporate
27 notices which have been sent via first class mail to owners of such
28 securities during the period to which such report relates, and (2) the
29 names and addresses of all owners of such securities for whom postal
30 authorities have returned any first class mail sent by the holder during
31 the period to which such report relates, and the dates on which such
32 mail was returned for each such owner. Nothing contained herein or in
33 any other provision of this chapter shall preclude the state comp-
34 troller, in the performance of his duties under this chapter, from veri-
35 fying that all such notices have been sent and whether or not such
36 notices have been returned to the holder by the postal authorities.
37 3. Any wages payable on or after July first, nineteen hundred sixty-
38 three by a domestic or foreign corporation and held for a resident by
39 such issuing corporation or held and payable by a fiduciary other than a
40 broker or dealer as defined in section five hundred ten of this chapter
41 for a resident shall be deemed to be abandoned property, where for
42 [three] five successive years:
43 (a) All such wages have remained unpaid to such resident, and
44 (b) No written communication has been received from such resident by
45 the holder, and
46 (c) Notice regarding such wages has been sent by the corporation or
47 fiduciary, via first class mail, to such resident at his last known
48 address and such notice has been returned to the corporation or fiduci-
49 ary by the postal authorities for inability to locate such resident.
50 § 3. Subdivisions 1, 1-a, 2, 3, 4 and 5 of section 511 of the aban-
51 doned property law, subdivisions 1, 2, 3 and 4 as amended by chapter 617
52 of the laws of 1973 and subdivisions 1-a and 5 as amended by chapter 767
53 of the laws of 1983, are amended to read as follows:
54 1. Any amount (a) received in this state after June thirtieth, nine-
55 teen hundred forty-six by a broker or dealer or nominee of such broker
56 or dealer as the holder of record of a security remaining unpaid to the
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1 person entitled thereto for [three] five years following the receipt
2 thereof, or (b) when paid to such broker, dealer or nominee on or with
3 respect to a security which has been deemed abandoned.
4 1-a. Any amount (a) received in this state on or after July first,
5 nineteen hundred seventy-four by a broker or dealer or nominee of such
6 broker or dealer other than as the holder of record of a security
7 remaining unpaid to the person entitled thereto for [three] five years
8 following the receipt thereof, or (b) when paid to such broker, dealer
9 or nominee on or with respect to a security which has been deemed aban-
10 doned.
11 2. Any amount (a) received in this state after June thirtieth, nine-
12 teen hundred forty-six due from a broker or dealer or nominee of such
13 broker or dealer to a customer which has remained unpaid to the customer
14 for [three] five years after the date of the last entry, other than the
15 receipt of dividends or interest in the account of such broker, dealer
16 or nominee with such customer, or (b) payable on or with respect to a
17 security which has been deemed abandoned.
18 3. Any security held in this state by a broker or dealer, or nominee
19 of such broker or dealer, as the holder of record of a security for a
20 customer or for a person or persons unknown to such broker or dealer or
21 nominee where, for [three] five successive years, all amounts paid ther-
22 eon or with respect thereto and received after June thirtieth, nineteen
23 hundred forty-six by such broker or dealer or nominee have remained
24 unclaimed. Provided, however, that if any amount or security specified
25 in this subdivision or subdivision one[,] or subdivision two [or three]
26 of this section is reflected, recorded, or included in an account with
27 respect to which such broker or dealer has on file evidence in writing
28 received within the [three] five years immediately preceding the thir-
29 ty-first day of December preceding the date such amount or security
30 would otherwise be payable or deliverable pursuant to section five
31 hundred twelve of this article that the person entitled thereto had
32 knowledge of such account, then such amount or security shall not be
33 deemed abandoned property.
34 4. Any security held by a broker or dealer or nominee of such broker
35 or dealer reflected, recorded, or included in an account with respect to
36 which, for [three] five successive years, all statements of account or
37 other communications which have been sent, via first class mail, to the
38 customer at his last known address have been returned to such broker,
39 dealer or nominee by the postal authorities for inability to locate the
40 customer, and no written communication has been received from the
41 customer by such broker, dealer or nominee, provided such security was
42 received or is held in this state by such broker, dealer or nominee or
43 the last known address of the customer is located in this state.
44 5. Any wages held and payable on or after July first, nineteen hundred
45 sixty-six by a broker or dealer, as defined in section five hundred ten
46 of this article, for the benefit of a person or persons, known or
47 unknown shall be deemed to be abandoned property, where for [three] five
48 successive years:
49 (a) All such wages have remained unpaid to such person, and
50 (b) No written communication has been received from such person by the
51 holder, and
52 (c) Notice regarding such wages, if sent by the broker or dealer, via
53 first class mail, to such person at his last known address has been
54 returned to the broker or dealer by the postal authorities for inability
55 to locate such person.
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1 § 4. Subdivision 1 of section 700 of the abandoned property law, as
2 amended by chapter 695 of the laws of 1964, paragraphs (a) and (c) as
3 amended by chapter 78 of the laws of 1976, paragraph (b) as amended by
4 section 13 of part A of chapter 61 of the laws of 2011, paragraph (d) as
5 amended by chapter 767 of the laws of 1983 and paragraph (e) as added
6 and paragraph (f) as amended by chapter 61 of the laws of 1989, is
7 amended to read as follows:
8 1. The following unclaimed property held or owing by life insurance
9 corporations shall be deemed abandoned property:
10 (a) Any moneys held or owing by any life insurance corporation which
11 shall have remained unclaimed for [three] five years by the person or
12 persons appearing to be entitled thereto under matured life insurance
13 policies on the endowment plan and which are payable to any person whose
14 last-known address, according to the records of the corporation, is
15 within this state.
16 (b) Any moneys held or owing by any life insurance corporation which
17 are payable under other kinds of life insurance policies to any person
18 whose last-known address, according to the records of the corporation,
19 is within this state, where the insured, if living, would have attained
20 the limiting age under the mortality table on which the reserves are
21 based, exclusive of
22 (i) any policy which has within [three] five years been assigned,
23 readjusted, kept in force by payment of premium, reinstated or subjected
24 to loan, or
25 (ii) any policy with respect to which such corporation has on file
26 written evidence received within [three] five years that the person or
27 persons apparently entitled to claim thereunder have knowledge thereof.
28 (c) Any moneys held or owing by any life insurance corporation due to
29 beneficiaries or other persons entitled thereto under policies on the
30 lives of persons who have died where the last-known address, according
31 to the records of the corporation, of the person or persons appearing to
32 be entitled thereto is within this state, which moneys shall have
33 remained unclaimed by the person or persons entitled thereto for [three]
34 five years.
35 (d) Any other moneys which are held or owing by any life insurance
36 corporation on or after July first, nineteen hundred sixty-seven consti-
37 tuting or representing refunds of any kind due upon or in connection
38 with life insurance policies payable to any person whose last known
39 address, according to the records of the corporation, is within this
40 state, which moneys shall have remained unclaimed by the person entitled
41 thereto for [three] five years.
42 (e) Any moneys held or owing by any life insurance corporation on or
43 after July first, nineteen hundred eighty-three upon or in connection
44 with an annuity contract payable to any person whose last-known address,
45 according to the records of the corporation, is within this state, which
46 moneys shall have remained unclaimed by the person entitled thereto for
47 [three] five years.
48 (f) If no address of the person or persons appearing to be entitled to
49 the unclaimed funds pursuant to paragraph (a), (b), (c), (d) or (e) of
50 this subdivision is known to such corporation, or if it is not definite
51 and certain from the records of such corporation what person is entitled
52 to such funds, it shall be presumed that the last-known address of the
53 person entitled to such funds is the same as the last-known address of
54 the insured or annuitant according to the records of such corporation.
55 Where no address can be ascertained, pursuant to this paragraph, for the
56 insured, annuitant or person or persons entitled to the unclaimed funds,
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1 such person's last-known address shall be presumed to be within this
2 state if the unclaimed funds are held or owing by life insurance corpo-
3 ration organized under the laws of this state.
4 § 5. This act shall take effect immediately.
