As Amended by House Committee
Session of 1999
Substitute for Senate Bill No. 117
By Committee on Financial Institutions and
Insurance
3-18
10 AN ACT
concerning unclaimed property; providing for the disposition
11 thereof; amending
K.S.A. 58-3934, 58-3936, 58-3938, 58-3943, 58-
12 3949, 58-3952, 58-3953
and, 58-3962 and 58-3974 and
K.S.A. 1998
13 Supp. 58-3935 and
58-3950 and repealing the existing sections; also
14 repealing K.S.A.
58-3937, 58-3940, 58-3941, 58-3942, 58-3944, 58-
15 3945, 58-3946, 58-3947
and 58-3948 and K.S.A. 1998 Supp. 58-3939.
16
17 Be it enacted by the Legislature of the
State of Kansas:
18 Section
1. K.S.A. 58-3934 is hereby amended to read as follows:
58-
19 3934. As used in this act, unless
the context otherwise requires:
20
(a) "Administrator" means the state treasurer.
21 (b) "Apparent
owner" means the person whose name appears on the
22 records of the holder as the person
entitled to property held, issued or
23 owing by the holder.
24
(c) "Attorney general" means the attorney general of
the state of
25 Kansas.
26
(d) "Banking organization" means a bank, trust company,
savings
27 bank, industrial bank, land bank,
safe deposit company, private banker or
28 any organization defined by other
law as a bank or banking organization.
29 (e)
(c) "Business association" means a
nonpublic corporation, joint-
30 stock company, investment company,
partnership, unincorporated asso-
31 ciation, joint venture, limited
liability company, business trust,
partner-
32 ship or association for business
purposes of two or more individuals,
33 whether or not for profit,
including a banking organization trust company,
34 land bank, safe deposit company,
safekeeping depository, financial organ-
35 ization, insurance company, utility
or any mutual fund, utility or other
36 similar entity, whether operating
in the form of a corporation or a trust,
37 including but not limited to any
investment companies registered under
38 the federal investment company act
of 1940 business entity consisting of
39 one or more persons, whether or not for
profit.
40 (f)
(d) "Domicile" means the state of incorporation of a
corporation
41 and the state of the principal place of
business of an unincorporated
42 person a holder other
than a corporation.
43 (g)
(e) "Financial organization" means a savings and loan
association,
Sub. for SB 117--Am. by H
2
1 cooperative bank,
building and loan association, savings bank, industrial
2 bank, bank, banking
organization or credit union.
3
(h) (f) "Holder" means a
person, wherever organized or domiciled,
4 who is:
5
(1) In possession of property belonging to
another;
6
(2) a trustee; or
7
(3) indebted to another on an obligation obligated
to hold for the
8 account of, or deliver or pay to,
the owner property that is subject to this
9 act.
10 (i)
(g) "Insurance company" means an association,
corporation, fra-
11 ternal or mutual benefit organization,
whether or not for profit, which is
12 engaged in the business of providing
life endowments, annuities or insur-
13 ance coverage, including
accident, burial, casualty, credit life, contract
14 performance, dental, disability,
fidelity, fire, health, hospitalization, ill-
15 ness, life, including endowments
and annuities, malpractice, marine,
16 mortgage, surety
and, wage protection and workers
compensation
17 insurance.
18
(j) "Intangible property" includes:
19
(1) Moneys, checks, drafts, deposits, interest, dividends and
income;
20
(2) credit balances, customer overpayment, gift certificates,
security
21 deposits, refunds, credit memos,
unpaid wages, unused airline tickets and
22 unidentified
remittances;
23
(3) stocks and other intangible ownership interests in
business
24 associations;
25
(4) moneys deposited to redeem stocks, bonds, coupons and
other
26 securities, or to make
distributions;
27
(5) amounts due and payable under the terms of insurance
policies;
28 and
29
(6) amounts distributable from a trust or custodial fund
established
30 under a plan to provide health,
welfare, pension, vacation, severance,
31 retirement, death, stock purchase,
profit sharing, employee savings, sup-
32 plemental unemployment insurance or
similar benefits.
33 (k)
(h) "Last known address" means a description of the
location of
34 the apparent owner sufficient for the
purpose of the delivery of mail.
35 (l)
(i) "Mineral" means oil, gas, uranium, sulphur,
lignite, coal and
36 any other substance that is ordinarily and
naturally considered a mineral,
37 regardless of the depth at which the oil,
gas, uranium, sulphur, lignite,
38 coal or other substance is found.
39 (m)
(j) "Mineral proceeds" includes
means amounts payable for the
40 extraction, production or sale of
minerals, or, upon abandonment of those
41 payments, all payments that become
payable thereafter. The term includes
42 amounts payable:
43 (1) All
obligations to pay resulting from the production and sale
of
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1 minerals, including net
revenue interest, royalties, overriding royalties,
2 production payments and joint
operating agreements; and
3
(2) all obligations For the acquisition and retention
of a mineral lease,
4 including bonuses, delay
rentals royalties, compensatory royalties,
shut-
5 in royalties
and, minimum royalties and delay
rentals;
6 (2) for
the extraction, production or sale of minerals, including
net
7 revenue interests, royalties,
overriding royalties, extraction payments and
8 production payments; and
9
(3) under an agreement or option, including a joint operating
agree-
10 ment, unit agreement, pooling agreement
and farm-out agreement.
11 (k) "Money
order" includes an express money order and a personal
12 money order, on which the remitter is
the purchaser. The term does not
13 include a bank money order or any other
instrument sold by a financial
14 organization if the seller has obtained
the name and address of the payee.
15 (n)
(l) "Owner" means a person who has a legal or
equitable interest
16 in property subject to this act or the
person's legal representative. The
17 term includes a depositor in the
case of a deposit, a beneficiary in the
18 case of a trust other than a deposit in
trust, and a creditor, claimant or
19 payee in the case of other
intangible property, or a person having a
legal
20 or equitable interest in property
subject to this act or such person's legal
21 representative.
22 (o)
(m) "Person" means an individual, business association,
state or
23 other financial
organization, estate, trust, state or other
government,
24 governmental subdivision or agency,
public corporation, public authority,
25 estate, trust, two or more persons
having a joint or common interest,
26 agency or instrumentality or any
other legal or commercial entity.
27 (n) "Property"
means tangible property described in K.S.A. 58-3939
28 and amendments thereto, or a fixed and
certain interest in intangible
29 property that is held, issued or owed in
the course of a holder's business,
30 or by a state or other
government, governmental subdivision, agency or
31 instrumentality and all income or
increments therefrom. The term in-
32 cludes property that is referred to as
or evidenced by:
33 (1) Money, a
check, draft, deposit, interest or dividend;
34 (2) credit
balance, customer's overpayment, security deposit, refund,
35 credit memorandum, unpaid wage, mineral
proceeds or unidentified
36 remittance;
37 (3) stock or
other evidence of ownership of an interest in a business
38 association or financial
organization;
39 (4) a bond,
debenture, note or other evidence of indebtedness;
40 (5) money
deposited to redeem stocks, bonds, coupons or other se-
41 curities or to make
distributions;
42 (6) an amount
due and payable under the terms of an annuity or
43 insurance policy, including policies
providing life insurance, property and
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1 casualty insurance, workers
compensation insurance or health and disa-
2 bility insurance; and
3 (7) an
amount distributable from a trust or custodial fund
established
4 under a plan to provide health,
welfare, pension, vacation, severance,
5 retirement, death, stock purchase,
profit sharing, employee savings, sup-
6 plemental unemployment insurance
or similar benefits.
7
(o) "Record" means information that is inscribed on a tangible
me-
8 dium or that is stored in an
electronic or other medium and is retrievable
9 in a perceivable form.
10 (p) "State" means
any state, district, commonwealth, of the
United
11 States, the District of Columbia, the
commonwealth of Puerto Rico or any
12 territory, insular possession or any other
area subject to the legislative
13 authority
jurisdiction of the United States.
14 (q) "Utility"
means a person who owns or operates for public use any
15 plant, equipment, property, franchise or
license of for the transmission
16 of communications or the production,
storage, transmission, sale, delivery
17 or furnishing of electricity, water, steam
or gas.
18 Sec.
2. K.S.A. 1998 Supp. 58-3935 is hereby amended to read as
19 follows: (a) Except as otherwise
provided by this act, all intangible prop-
20 erty, including any income or
increment derived therefrom, that is held,
21 issued or owing in the ordinary
course of a holder's business and has
22 remained unclaimed by the owner for
more than five years after it became
23 payable or distributable is
presumed abandoned Property is presumed
24 abandoned if it is unclaimed by the
apparent owner during the time set
25 forth below for the particular
property:
26 (1) Traveler's
check, 15 years after its issuance;
27 (2) money
order, seven years after issuance;
28 (3) except as
provided in K.S.A. 58-3943, and amendments thereto,
29 stock or other equity interest in a
business association or financial organ-
30 ization, including a security
entitlement under article 8 of the uniform
31 commercial code, five years after the
earlier of:
32 (A) The date
of the most recent dividend, stock split or other distri-
33 bution unclaimed by the apparent owner;
or
34 (B) the date
of the second mailing of a statement of account or other
35 notification or communication that was
returned as undeliverable or after
36 the holder discontinued mailings,
notifications or communications to the
37 apparent owner;
38 (4) debt of a
business association or financial organization, other than
39 a bearer bond or an original issue
discount bond, five years after the date
40 of the most recent interest payment
unclaimed by the apparent owner;
41 (5) a demand,
savings or time deposit, including a deposit that is
42 automatically renewable, five years
after the earlier of maturity or the
43 date of the last indication by the owner
of interest in the property, except
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1 that a deposit that is
automatically renewable is deemed matured for
2 purposes of this section upon its
initial date of maturity, unless the owner
3 has consented to a renewal at or
about the time of the renewal and the
4 consent is in writing or is
evidenced by a memorandum or other record
5 on file with the holder;
6
(6) money or credits owed to a customer as a result of a
retail business
7 transaction, five years after the
obligation accrued;
8
(7) amount owed by an insurer on a life or endowment
insurance
9 policy or an annuity that has
matured or terminated, three years after
10 the obligation to pay arose or, in the
case of a policy or annuity payable
11 upon proof of death, three years after
the insured has attained, or would
12 have attained if living, the limiting
age under the mortality table on which
13 the reserve is based;
14 (8) property
distributable by a business association or financial or-
15 ganization in a course of dissolution,
one year after the property becomes
16 distributable;
17 (9) property
received by a court as proceeds of a class action, and not
18 distributed pursuant to the judgment,
one year after the distribution date;
19 (10) property
held by a court, state or other government,
govern-
20 mental subdivision, agency or
instrumentality, one year after the property
21 becomes distributable;
22 (11) wages or
other compensation for personal services, one year after
23 the compensation becomes
payable;
24 (12) deposit
or refund owed to a subscriber by a utility, one year after
25 the deposit or refund becomes
payable;
26 (13) property
held by agents and fiduciaries in a fiduciary capacity
27 for the benefit of another person, five
years after it has become payable
28 or distributable, unless the owner has
increased or decreased the princi-
29 pal, accepted payment of principal or
income, communicated concerning
30 the property or otherwise indicated an
interest as evidenced by a mem-
31 orandum or other record on file prepared
by the fiduciary;
32 (14) property
in an individual retirement account, defined benefit
33 plan or other account or plan that is
qualified for tax deferral under the
34 income tax laws of the United States,
three years after the earliest of the
35 date of the distribution or attempted
distribution of the property, the date
36 of the required distribution as stated
in the plan or trust agreement gov-
37 erning the plan, or the date, if
determinable by the holder, specified in
38 the income tax laws of the United States
by which distribution of the
39 property must begin in order to avoid a
tax penalty;
40 (15) all other
property, five years after the owner's right to demand
41 the property or after the obligation to
pay or distribute the property
42 arises, whichever first occurs;
and
43 (16) any
proceeds of a sale pursuant to K.S.A. 58-817, and amend-
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1 ments thereto, which remain after
satisfaction of the lien provided by
2 K.S.A. 58-816, and amendments
thereto, that have been unclaimed by the
3 owner for one year from receipt of
the proceeds of the sale and satisfaction
4 of the lien.
5 (b) At
the time that an interest is presumed abandoned under sub-
6 section (a) any other property
right accrued or accruing to the owner as
7 a result of the interest, and not
previously presumed abandoned, is also
8 presumed abandoned.
9
(c) Property is unclaimed if, for the applicable period set
forth in
10 subsection (a), the apparent owner has
not communicated in writing or
11 by other means reflected in a
contemporaneous record prepared by or on
12 behalf of the holder, with the holder
concerning the property or the ac-
13 count in which the property is held, and
has not otherwise indicated an
14 interest in the property. A
communication with an owner by a person
15 other than the holder or the holder's
representative who has not in writing
16 identified the property to the owner is
not an indication of interest in the
17 property by the owner.
18 (d) An
indication of an owner's interest in property includes:
19 (1) The
presentment of a check or other instrument of payment of a
20 dividend or other distribution made with
respect to an account or under-
21 lying stock or other interest in a
business association or financial organ-
22 ization or, in the case of a
distribution made by electronic or similar
23 means, evidence that the distribution
has been received;
24
(2) owner-directed activity in the account in which the
property is
25 held, including a direction by the owner
to increase, decrease or change
26 the amount or type of property held in
the account;
27 (3) the making
of a deposit to or withdrawal from a bank account;
28 and
29 (4) the
payment of a premium with respect to a property interest in
30 an insurance policy, except that the
application of an automatic premium
31 loan provision or other nonforfeiture
provision contained in an insurance
32 policy does not prevent a policy from
maturing or terminating if the in-
33 sured has died or the insured or the
beneficiary of the policy has otherwise
34 become entitled to the proceeds before
the depletion of the cash surrender
35 value of a policy by the application of
those provisions.
36 (b)
(e) Property is payable or distributable for the
purpose of this act
37 notwithstanding the owner's failure to make
demand or to present any
38 instrument or document otherwise
required to receive obtain payment.
39 (f) Any demand
or savings account with a financial organization shall
40 not be presumed abandoned if regular
correspondence to an owner of the
41 account has not been returned to the
sender.
42 (g) Any
outstanding check, draft, credit balance, customer's
overpay-
43 ment or unidentified remittance issued
to a sole proprietorship or business
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1 association as part of a
commercial transaction in the ordinary course of
2 a holder's business shall not be
presumed abandoned.
3
(c) (h) A holder may not impose with
respect to any property payable
4 or distributable for the purpose of
this act, including any income or in-
5 crement derived therefrom, any fee or
charge due to dormancy or inac-
6 tivity or cease payment of interest
unless:
7 (1) There
is an enforceable written contract between the holder and
8 the owner of the property pursuant to
which the holder may impose a
9 charge or cease payment of
interest;
10 (2) for property
in excess of $100, the holder, no more than three
11 months before the initial imposition of
those charges or cessation of in-
12 terest, has mailed written notice to the
owner of the amount of those
13 charges at the last known address of the
owner stating that those charges
14 will be imposed or that interest will
cease, but the notice provided in this
15 section need not be given with respect to
charges imposed or interest
16 ceased before the effective date of this
act, or for property described in
17 K.S.A. 58-3937 and 58-3938, and amendments
thereto; and
18 (3) the holder
regularly imposes such charges or ceases payment of
19 interest and in no instance reverses or
otherwise cancels them or retro-
20 actively credits interest with respect to
the property. Charges imposed
21 because of dormancy or inactivity may be
made and collected monthly,
22 quarterly or annually except that beginning
with the effective date of this
23 act, such charges may only be imposed for a
maximum of five calendar
24 years.
25 (i) For the
purpose of this section, a person who holds property as an
26 agent for a business association is
deemed to hold the property in a fi-
27 duciary capacity for that business
association alone unless the agreement
28 between the agent and the business
association provides otherwise.
29 (j) For the
purposes of this act, a person who is deemed to hold prop-
30 erty in a fiduciary capacity for a
business association alone is the holder
31 of the property only insofar as the
interest of the business association in
32 the property is concerned, and the
business association is the holder of
33 the property insofar as the interest of
any other person in the property is
34 concerned.
35 Sec.
3. K.S.A. 58-3936 is hereby amended to read as follows:
58-
36 3936. Unless Except
as otherwise provided in this act or by other statute
37 of this state, intangible
property that is presumed abandoned, whether
38 located in this or another state, is
subject to the custody of this state as
39 unclaimed property if the
conditions raising a presumption of abandon-
40 ment under K.S.A. 58-3935 and
58-3938 through 58-3949, and amend-
41 ments thereto, are satisfied
and if:
42 (a) The last
known address of the apparent owner, as shown on the
43 records of the holder, of the
apparent owner is in this state;
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1 (b) the
records of the holder do not reflect the identity of the person
2 entitled to the property and it is
established that the last known address
3 of the person entitled to the
property is in this state;
4 (c) the
records of the holder do not reflect the last known address of
5 the apparent owner, and it is
established that:
6 (1) The
last known address of the person entitled to the property is
7 in this state; or
8 (2) the
holder is a domiciliary domiciled in this
state or is a state or
9 other government or
governmental subdivision or, agency or
instrumen-
10 tality of this state and has not
previously paid or delivered the property
11 to the state of the last known address of
the apparent owner or other
12 person entitled to the property;
13 (d) the last
known address of the apparent owner, as shown on the
14 records of the holder, of the
apparent owner is in a state that does not
15 provide by law for the
escheat or custodial taking of the property or
its
16 escheat or unclaimed property law
is not applicable to the property and
17 the holder is a
domiciliary domiciled in this state or is a
state or other
18 government or governmental subdivision
or, agency or instrumentality of
19 this state;
20 (e) the last
known address of the apparent owner, as shown on the
21 records of the holder, of the
apparent owner is in a foreign nation
country
22 and the holder is a
domiciliary domiciled in this state or is a
state or
23 other government or governmental
subdivision or, agency or
instrumen-
24 tality of this state;
or
25 (f) the
transaction out of which the property arose occurred in this
26 state:
27 (1)
(A) The, the holder is domiciled in a state that
does not provide
28 for the escheat or custodial taking of
the property, and the last known
29 address of the apparent owner or other
person entitled to the property
30 is unknown; or
31 (B) the
last known address of the apparent owner or other
person
32 entitled to the property
is in a state that does not provide by law for the
33 escheat or custodial taking of the property
or its escheat or unclaimed
34 property law is not applicable to
the property; and
35 (2) the
holder is a domiciliary of a state that does not provide by
law
36 for the escheat or custodial taking
of the property or its escheat or un-
37 claimed property law is not
applicable to the property.; or
38 (g) the
property is a traveler's check or money order purchased in
39 this state or the issuer of the
traveler's check or money order has its
40 principal place of business in this
state and the issuer's records show that
41 the instrument was purchased in a state
that does not provide for the
42 escheat or custodial taking of the
property or do not show the state in
43 which the instrument was
purchased.
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1 Sec.
4. K.S.A. 58-3938 is hereby amended to read as follows:
58-
2 3938. Any sum payable
on A record of the issuance of a check, draft
or
3 similar instrument, except
those subject to K.S.A. 58-3937 and amend-
4 ments thereto, on which a
banking or financial organization is directly
5 liable, including a cashier's
check and a certified check, which has been
6 outstanding for more than
five years after it was payable or after its is-
7 suance if payable on demand,
is presumed abandoned unless the owner,
8 within five years, has
communicated in writing with the banking or finan-
9 cial organization concerning
it or otherwise indicated an interest as evi-
10 denced by a memorandum or other
record on file prepared by an em-
11 ployee thereof is prima
facie evidence of an obligation. In claiming
12 property from a holder who is also the
issuer, the administrator's burden
13 of proof as to the existence and amount
of the property and its abandon-
14 ment is satisfied by showing issuance of
the instrument and a passage of
15 the requisite period of abandonment.
Defenses of payment, satisfaction,
16 discharge and want of consideration are
affirmative defenses that must
17 be established by the holder.
18 Sec.
5. K.S.A. 58-3943 is hereby amended to read as follows:
58-
19 3943. (a) Any stock, shareholding
or other intangible ownership interest
20 in a business association, the
existence of which is evidenced by records
21 available to the association, is
presumed abandoned and, with respect to
22 the interest, the association is
the holder, if:
23 (1) The
interest in the association is owned by a person who for
more
24 than five years has neither claimed
a dividend, distribution nor other sum
25 payable as a result of the interest
or who has not communicated with the
26 association regarding the interest
or a dividend, distribution or other sum
27 payable as the result of the
interest as evidenced by a memorandum or
28 other record on file with the
association prepared by an employee of the
29 association; and
30 (2) the
association does not know the location of the owner at
the
31 end of the five-year period. The
return of official shareholder notifications
32 or communications by the postal
service as undeliverable shall be evi-
33 dence that the association does not
know the location of the owner.
34 (b) This
act shall be applicable to both the underlying stock,
share-
35 holdings or other intangible
ownership interests of an owner, and any
36 stock, shareholdings or other
intangible ownership interest of which the
37 business association is in
possession of the certificate or other evidence
38 or indicia of ownership, and to the
stock, shareholdings or other intangible
39 ownership interests of dividend and
nondividend paying business asso-
40 ciations whether or not the
interest is represented by a certificate.
41 (c) At
the time an interest is presumed abandoned under this
section,
42 any dividend, distribution or other
sum then held for or owing to the
43 owner as a result of the interest,
and not previously presumed abandoned,
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1 is presumed
abandoned.
2
(d) This act does not apply to any stock or other
intangible ownership
3 interest enrolled in a plan that
provides for the automatic reinvestment
4 of dividends, distributions or other
sums payable as a result of the interest
5 unless:
6
(1) (a) The records available to the
administrator of the plan show,
7 with respect to any intangible
ownership interest not enrolled in the re-
8 investment plan, that the owner has
not within five years communicated
9 in any manner described in
subsection (a) paragraph (3) of subsection
(a)
10 of K.S.A. 58-3935, and amendments
thereto; or
11 (2)
(b) five years have elapsed since the location of the
owner became
12 unknown to the association, as evidenced by
the return of official share-
13 holder notifications or communications by
the postal service as undeliv-
14 erable, and the owner has not within those
five years communicated in
15 any manner described in subsection
(a) paragraph (3) of subsection (a)
16 of K.S.A. 58-3935, and amendments
thereto. The five-year period from
17 the return of official shareholder
notifications or communications shall
18 commence from the earlier of the return of
the second such mailing or
19 the time the holder discontinues mailings
to the shareholder.
20 Sec.
6. K.S.A. 58-3949 is hereby amended to read as follows:
58-
21 3949. (a) Except as otherwise
provided by subsection (b), all Tangible
and
22 intangible property held
in a safe deposit box or any other safekeeping
23 repository
depository in this state in the ordinary course of the
holder's
24 business which remain
and proceeds resulting from the sale of the prop-
25 erty permitted by other law are presumed
abandoned if the property
26 remains unclaimed by the owner for
more than five years after expiration
27 of the lease or rental period on the
box or other repository has expired
28 are presumed abandoned
depository.
29 (b) Any
proceeds of a sale pursuant to K.S.A. 58-817 and
amend-
30 ments thereto which remain after
satisfaction of the lien provided by
31 K.S.A. 58-816 and amendments
thereto that have been unclaimed by the
32 owner for one year from receipt of
the proceeds of the sale and satisfac-
33 tion of the lien are presumed
abandoned.
34 Sec.
7. K.S.A. 1998 Supp. 58-3950 is hereby amended to read as
35 follows: 58-3950. (a) Except as provided
in subsection (i), a person holding
36 holder of property tangible
or intangible, presumed abandoned and
sub-
37 ject to custody as unclaimed
property under this act shall make a report
38 to the administrator concerning the
property as provided in this section.
39 (b) The report
shall must be verified and shall
include must contain:
40 (1) A
description of the property;
41 (1)
(2) except with respect to travelers checks and
money orders a
42 traveler's check or money order, the
name, if known, and last known
43 address, if any, of each person
appearing from the records of the holder
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1 to be the, and
social security number or taxpayer identification number,
2 if readily ascertainable, of the
apparent owner of property of the value of
3 $100 or more presumed
abandoned under this act;
4 (3) an
aggregated amount of items valued under $100 each;
5
(2) (4) in the case of
unclaimed funds an amount of $100 or
more
6 held or owing under
any an annuity or a life or endowment
insurance
7 policy or annuity
contract, the full name and last known address of the
8 insured or annuitant and of the
beneficiary according to the records of
9 the insurance company holding
or owing the funds;
10 (3)
(5) in the case of the contents of
property held in a safe deposit
11 box or other safekeeping repository
or of other tangible property depos-
12 itory, a description of the property
and any amounts owing to the holder;
13 (4) the
nature and identifying number, if any, or description of
the
14 property and the amount appearing
from the records to be due, but items
15 of value under $100 each shall be
reported in the aggregate;
16 (5)
(6) the date, if any, on which the property
became payable, de-
17 mandable or returnable and the date of the
last transaction with the ap-
18 parent owner with respect to the property;
and
19 (6)
(7) other information that the administrator
prescribes by rules
20 and regulations as necessary for the
administration of this act.
21 (c) If
the person holding a holder of property
presumed abandoned
22 and subject to custody as unclaimed
property is a successor to other per-
23 sons another person
who previously held the property for the apparent
24 owner or the holder has changed
names its name while holding the prop-
25 erty, the holder shall file with the report
all its former names, if any, and
26 the known names and addresses for
each of all previous holder
holders
27 of the property.
28 (d) The report
shall must be filed before November 1 of
each year
29 as of June 30 next preceding, but
the report of any and cover the 12
30 months next preceding July 1 of that
year, but a report with respect to a
31 life insurance company
shall must be filed before May 1 of each
year as
32 of December 31 for the
calendar year next preceding. On written
request
33 by any person required to file a
report, the administrator may postpone
34 the reporting date.
35 (e) Not
more than 120 days before filing the report required by
this
36 section and no later than 60 days
before filing the report required by this
37 section, the holder in
possession The holder of property presumed
aban-
38 doned and subject to custody as
unclaimed property under this act shall
39 send written notice to the apparent
owner's last known address informing
40 the apparent owner
owner, not more than 120 days or less than 60 days
41 before filing the report, stating
that the holder is in possession of property
42 subject to this act if:
43 (1) The holder
has in its records an address for the apparent owner
Sub. for SB 117--Am. by H
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1 which the holder's records do not
disclose to be inaccurate;
2
(1) (2) the claim of the apparent
owner is not barred by the a statute
3 of limitations; and
4
(2) (3) the value of the
property has a value of is $100 or more, or
is
5 reported under K.S.A. 58-3943 or
58-3949 and amendments thereto.
6 (f) The
written notice shall also contain the following:
7 (1) Nature
and identifying number, if any, or description of the funds
8 or other property; and
9 (2) the
amount appearing on the records of the holder to be due the
10 apparent owner.
11 (g) If the holder
is not a life insurance company, the written notice
12 shall set forth an additional statement
that the funds or other property
13 will be reported as unclaimed property to
the state treasurer of Kansas
14 no later than November 1 of the current
year.
15 (h) If the holder
is a life insurance company, the written notice shall
16 set forth an additional statement that the
funds or other property will be
17 reported as unclaimed property to the state
treasurer of Kansas no later
18 than May 1 of the current year.
19 (i) The holder
of property presumed abandoned shall not be
required
20 does not need to file a report
under the provisions of this section if such
21 holder has no individual property valued
over $100 and the total value
22 of such holder's aggregated property is
under $250, unless required to
23 do so by the provisions of subsection
(k).
24 (j) Before the
date for filing the report, the holder of property pre-
25 sumed abandoned may request the
administrator to extend the time for
26 filing the report. The administrator may
grant the extension for good
27 cause. The holder, upon receipt of the
extension, may make an interim
28 payment on the amount the holder
estimates will ultimately be due which
29 terminates the accrual of additional
interest on the amount paid.
30 (k) The
administrator, in the administrator's discretion, may
31 require that any holder of property
presumed abandoned, file a
32 report as required by this
section.
33 Sec.
8. K.S.A. 58-3952 is hereby amended to read as follows:
58-
34 3952. (a) At the time of the filing of the
report required by subsection
35 (d) of K.S.A. 58-3950 and amendments
thereto and with that report, the
36 person holding holder
of property presumed abandoned and subject
to
37 custody as unclaimed
property shall pay or, deliver
to the administrator
38 all of the property shown on the
report and remaining unclaimed by the
39 apparent owner.
40 (b) Upon
written request showing good cause, the administrator
may
41 postpone the payment or delivery
upon such terms or conditions as the
42 administrator deems necessary and
appropriate.
43 (c) The
property paid or delivered to the administrator shall
include
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1 all interest, dividends,
increments and accretions due, payable or distri-
2 butions on the property on
November 1 or May 1 for a life insurance
3 company. If payment or
delivery is postponed, the property paid or de-
4 livered to the administrator
shall include all interest, dividends, incre-
5 ments and accretions due,
payable or distributable on the day that the
6 property is paid or delivered
to the administrator or cause to be paid or
7 delivered to the administrator the
property described in the report as
8 unclaimed, but if the property is
an automatically renewable deposit and
9 a penalty or forfeiture in the
payment of interest would result, the time
10 for compliance is extended until a
penalty or forfeiture would no longer
11 result.
12 (b) If the
property reported to the administrator is a security or se-
13 curity entitlement under article 8 of
the uniform commercial code, the
14 administrator is an appropriate person
to make an endorsement, instruc-
15 tion or entitlement order on behalf of
the apparent owner to invoke the
16 duty of the issuer or its transfer agent
or the securities intermediary to
17 transfer or dispose of the security or
the security entitlement in accord-
18 ance with article 8 of the uniform
commercial code.
19 (c) If the
holder of property reported to the administrator is the
issuer
20 of a certificated security, the
administrator has the right to obtain a re-
21 placement certificate pursuant to K.S.A.
84-8-405, and amendments
22 thereto, but an indemnity bond is not
required.
23 (d) The
holder of an interest under K.S.A. 58-3943 and
amendments
24 thereto shall issue and deliver to
the administrator a duplicate certificate
25 or other evidence of ownership if
the holder does not issue certificates
26 of ownership, registered in the
name of the state treasurer of Kansas.
27 Upon delivery of a duplicate
certificate to the administrator An issuer,
28 the holder and any transfer agent,
registrar or other person acting for
or
29 on behalf of a holder in executing
or delivering the duplicate certificate
30 or other evidence of ownership is
relieved of all liability in accordance
31 with K.S.A. 58-3953 and amendments
thereto to every person, including
32 any person acquiring the original
certificate or the duplicate certificate
33 issued to the administrator for any
losses or damages resulting to any
34 person by the issuance and delivery
of the duplicate certificate or other
35 evidence of ownership to the
administrator.
36 (e) When
a certificate or other evidence of ownership or a bond
or
37 other debt security registered in
the name of a person is delivered to the
38 administrator pursuant to any
provision of this act and is presented by
39 the administrator to the issuer
thereof or the agent of the issuer, the issuer
40 shall transfer and register it in
the name of the state treasurer of Kansas,
41 and a new certificate or security,
so registered, shall be delivered to the
42 administrator. The issuer and its
transfer agent, registrar or other person
43 acting pursuant to the
instructions of and on behalf of the issuer in
exe-
Sub. for SB 117--Am. by H
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1 cuting and delivering the
certificate or security shall be fully and auto-
2 matically relieved from any
liability to or holder in accordance with this
3 section is not liable to the
apparent owner and must be indemnified
4 against claims of any person
in accordance with K.S.A. 58-3953 and
5 amendments thereto for any loss or
damage caused by the transfer, is-
6 suance and delivery of the
certificate or security to the administrator.
7 (e) A
holder is required to deliver property reported as
aggregate
8 under K.S.A. 58-3950, and
amendments thereto, only if the total amount
9 of the aggregate property reported
exceeds $250.
10 Sec.
9. K.S.A. 58-3953 is hereby amended to read as follows:
58-
11 3953. (a) In this section, payment or
delivery is made in "good faith" if:
12 (1) Payment or
delivery was made in a reasonable attempt to comply
13 with this act;
14 (2) the holder
was not then in breach of a fiduciary obligation with
15 respect to the property and had a
reasonable basis for believing, based on
16 the facts then known, that the property
was presumed abandoned; and
17 (3) there is
no showing that the records under which the payment or
18 delivery was made did not meet
reasonable commercial standards of
19 practice.
20 (a)
(b) Upon the payment or delivery of property to the
administrator,
21 the state assumes custody and
responsibility for the safekeeping of the
22 property. A person
holder who pays or delivers property to the adminis-
23 trator in good faith is relieved of all
liability to the extent of the value of
24 the property paid or delivered for
any claim then existing or which there-
25 after may arise or be made
in arising thereafter with respect to the
26 property.
27 (b)
(c) A holder who has paid money to the administrator
pursuant
28 to this act may subsequently make
payment to any a person
reasonably
29 appearing to the holder to be entitled to
payment and, upon a filing by
30 the holder of proof of payment and
proof that the payee was entitled
31 thereto to the
payment, the administrator shall promptly reimburse the
32 holder for the payment without imposing
any a fee or other charge. If
33 reimbursement is sought for a payment made
on a negotiable instrument,
34 including a travelers
traveler's check or money order, the holder
shall
35 must be reimbursed under
this subsection upon filing proof that the in-
36 strument was duly presented and that
payment was made to a person who
37 reasonably appeared to the
holder to be entitled to payment. The holder
38 shall must be
reimbursed for payment made under this subsection
even
39 if the payment was made to a person whose
claim was barred under K.S.A.
40 58-3962 and amendments thereto.
41 (c)
(d) A holder who has delivered property,
including a certificate of
42 any interest in a business
association, other than money to the adminis-
43 trator pursuant to this act may reclaim the
property if it is still in the
Sub. for SB 117--Am. by H
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1 possession of the administrator,
without paying any fee or other charge,
2 upon filing proof that the
apparent owner has claimed the property from
3 the holder.
4
(d) (e) The administrator may accept
the a holder's affidavit as suf-
5 ficient proof of the facts
that entitle the holder holder's right to
recover
6 money and property under this
section.
7
(e) (f) If the
a holder pays or delivers property to the administrator
8 in good faith and thereafter another
person claims the property from the
9 holder or another state claims the
money or property under its laws re-
10 lating to escheat or abandoned or unclaimed
property, the administrator,
11 upon written notice of the claim, shall
defend the holder against the claim
12 and indemnify the holder against any
liability on the claim resulting from
13 payment or delivery of the property to
the administrator.
14 (f) For
the purposes of this section, "good faith" means that:
15
(1) Payment or delivery was made in a reasonable attempt to
comply
16 with this act;
17 (2) the
person delivering the property was not a fiduciary then
in
18 breach of trust in respect to the
property and had a reasonable basis for
19 believing, based on the facts then
known to such person, that the property
20 was abandoned for the purposes of
this act; and
21 (3) there
is no showing that the records pursuant to which the
deliv-
22 ery was made did not meet
reasonable commercial standards of practice
23 in the industry.
24 (g) Property
removed from a safe deposit box or other safekeeping
25 depository is received by the
administrator subject to the holder's right
26 to be reimbursed for the cost of the
opening and to any valid lien or
27 contract providing for the holder to be
reimbursed for unpaid rent or
28 storage charges. The administrator shall
reimburse the holder out of the
29 proceeds remaining after deducting the
expenses incurred by the admin-
30 istrator in selling the
property.
31 Sec.
10. K.S.A. 58-3962 is hereby amended to read as follows:
58-
32 3962. (a) The expiration, before or after
the effective date of this act, or
33 any period of time specified by contract,
statute or court order during
34 which a claim for money or property can be
made or during which an
35 action or proceeding may be commenced or
enforced to obtain payment
36 of a claim for money or to recover property
does not prevent the money
37 or property from being presumed abandoned
or affect any duty to file a
38 report or to pay or deliver abandoned
property to the administrator as
39 required by this act.
40 (b) No action or
proceeding may be commenced by the administrator
41 against a holder concerning any provision
of this act more than 10 five
42 years after the holder either specifically
reported the property, or gave
43 notice of a dispute regarding the property,
to the administrator. In the
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1 absence of such a report or other
express notice, the period of limitation
2 is tolled. The period of
limitation is tolled by the filing of a fraudulent
3 report.
4 Sec.
11. K.S.A. 58-3974 is hereby amended to read as
follows:
5 58-3974 . (a) The provisions
of this act shall not apply to any tan-
6 gible or intangible personal
property which is subject to the pro-
7 visions of K.S.A. 8-1101, 8-1102,
9-1918, 10-815, 17-2206a, 17-
8 5564, 19-320, 47-229, 47-230,
47-232, 47-236 to 47-239, inclusive,
9 59-514, 59-901 to 59-905,
inclusive, 70-101, 70-102, 70-103 and 70-
10 104 and amendments thereto.
11 (b) This act
shall not apply to any personal property which is
12 being administered or has been
distributed under the provisions
13 of K.S.A. 59-2701 to 59-2707, inclusive,
and amendments thereto.
14 (c) This act
shall not apply to any patronage dividend or capital
15 credit held or owing by any cooperative
association, society or cor-
16 poration organized under the provisions
of K.S.A. 17-1501 et seq.,
17 17-1601 et seq. or
17-4601 et seq. and amendments thereto.
18 (d) This act
shall not apply to any patronage dividend or any
19 capital credit held or owing by any
public utility which is a mem-
20 ber-owned nonprofit corporation
organized under the provisions
21 of K.S.A. 17-6001 et seq.
and amendments thereto.
22 Sec.
11 12. K.S.A. 58-3934, 58-3936,
58-3937, 58-3938, 58-3940, 58-
23 3941, 58-3942, 58-3943, 58-3944, 58-3945,
58-3946, 58-3947, 58-3948,
24 58-3949, 58-3952, 58-3953
and, 58-3962 and 58-3974 and
K.S.A. 1998
25 Supp. 58-3935, 58-3939 and 58-3950 are
hereby repealed.
26 Sec.
12 13. This act shall take
effect and be in force from and after
27 January 1, 2000, and its publication in the
statute book.
28