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