Senate Bill No. 490
(By Senators Ross and Helmick)
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[Introduced February 20, 1995; referred to the Committee
on Finance.]
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A BILL to amend article eight, chapter thirty-six of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
eight-c; and to amend and reenact section two of said
article, all relating to providing that warrants issued by
the state which have not been presented for payment within
six months are to be considered abandoned property; and that
the abandonment period on all property held by the state
treasurer shall be reduced to five years.
Be it enacted by the Legislature of West Virginia:
That article eight, chapter thirty-six of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section
eight-c; and to amend and reenact section two of said article,
all to read as follows:
ARTICLE 8. UNIFORM DISPOSITION OF UNCLAIMED PROPERTY ACT.
§36-8-2. Property held by banking or financial organizations.
The following property held or owing by a banking or
financial organization is presumed abandoned:
(a) Any noninterest bearing demand, savings or matured time
deposit made in this state with a banking organization, or other
financial organization, excluding any charges which may lawfully
be withheld, if the owner has not within the immediately
preceding five years increased or decreased the amount of the
deposit: Provided, That notwithstanding the fact that there has
been no increase or decrease in the amount of the deposit within
the five-year period, there shall be no presumption of
abandonment if the owner has within the immediately preceding
year:
(1) Corresponded in writing with the organization concerning
the deposit; or
(2) Otherwise indicated an interest in the deposit as
evidenced by a memorandum on file with the organization.
In any case where the owner has taken any of the actions
specified in paragraph (1) or (2) of this subdivision there shall
thereafter be no presumption of abandonment unless and until
another five years have passed without any increase or decrease
in the amount of the deposit and without any of such actions
having been taken in the last year of such further five-year
period.
(b) Any interest bearing demand, savings or matured time
deposit made in this state with a banking organization or other
financial organization, together with any interest or dividend
thereon, excluding any charges that may lawfully be withheld, if
the owner has not within the immediately preceding fifteen five
years increased or decreased the amount of the deposit:
Provided, That notwithstanding the fact that there has been no
increase or decrease in the amount of the deposit within the
fifteen five-year period, there shall be no presumption of
abandonment if the owner has within the immediately preceding
year:
(1) Presented the passbook or other similar evidence of
deposit for the crediting of interest; or
(2) Corresponded in writing with the organization concerning the deposit; or
(3) Otherwise indicated an interest in the deposit as
evidenced by a memorandum on file with the organization.
In any case where the owner has taken any of the actions
specified in paragraph (1), (2) or (3) of this subdivision there
shall thereafter be no presumption of abandonment unless and
until another fifteen five years have passed without any increase
or decrease in the amount of the deposit and without any of such
actions having been taken in the last year of such further
fifteen five-year period.
(c) Any noninterest bearing funds paid in this state toward
the purchase of shares or other interest in a financial
organization or any deposit made therewith in this state,
excluding any charges that may lawfully be withheld, if the owner
has not within the immediately preceding five years increased or
decreased the amount of the funds or deposit: Provided, That
notwithstanding the fact that there has been no increase or
decrease in the amount of the funds or deposit within said five-
year period, there shall be no presumption of abandonment if the
owner has within the immediately preceding year:
(1) Corresponded in writing with the financial organization concerning the funds or deposit; or
(2) Otherwise indicated an interest in the funds or deposit
as evidenced by a memorandum on file with the financial
organization.
In any case where the owner has taken any of the actions
specified in paragraph (1) or (2) of this subdivision there shall
thereafter be no presumption of abandonment unless and until
another five years have passed without any increase or decrease
in the amount of the funds or deposit and without any of such
actions having been taken in the last year of such further
five-year period.
(d) Any interest bearing funds paid in this state toward the
purchase of shares or other interest in a financial organization
or any deposit made therewith in this state, and any interest or
dividends thereon, excluding any charges that may lawfully be
withheld, if the owner has not within the immediately preceding
fifteen five years increased or decreased the amount of the funds
or deposit: Provided, That notwithstanding the fact that there
has been no increase or decrease in the amount of the funds or
deposit within said fifteen five-year period, there shall be no
presumption of abandonment if the owner has within the immediately preceding year:
(1) Presented an appropriate record for the crediting of
interest or dividends; or
(2) Corresponded in writing with the financial organization
concerning the funds or deposit; or
(3) Otherwise indicated an interest in the funds or deposit
as evidenced by a memorandum on file with the financial
organization.
In any case where the owner has taken any of the actions
specified in paragraph (1), (2) or (3) of this subdivision (d),
there shall thereafter be no presumption of abandonment unless
and until another fifteen five years have passed without any
increase or decrease in the amount of the funds or deposit and
without any of such actions having been taken in the last year of
such further fifteen five-year period.
(e) Any sum payable on any check certified in this state or
on any written instrument issued in this state on which a banking
or financial organization is directly liable, including, by way
of illustration but not of limitation, a certificate of deposit
and draft that has been outstanding for more than five years from
the date it was payable, or from the date of its issuance if payable on demand, unless the owner has within the preceding year
corresponded in writing with the banking or financial
organization concerning it, or otherwise indicated an interest as
evidenced by a memorandum on file with the banking or financial
organization.
(f) Any funds or other personal property, tangible or
intangible, removed from a safe-deposit box or any other
safekeeping depository in this state on which the lease or rental
period has expired due to nonpayment of rental charges or other
reason, or any surplus amounts arising from the sale thereof
pursuant to law, that have been unclaimed by the owner for more
than five years from the date on which the lease or rental period
expired.
(g) No holder may impose with respect to property described
in this section any charges due to dormancy or inactivity or
cease payment of interest unless there is an enforceable written
contract between the holder and the owner of the property
pursuant to which the holder may impose those charges or cease
payment of interest.
(h) Any amount held or owing by any organization for the
payment of a travelers' check on which such organization is directly liable shall be presumed abandoned if such amount is
held or owing for payment of a travelers check which shall have
been outstanding for more than fifteen years from the date of its
sale.
§36-8-8c. Presumption of abandonment of warrants issued by the
state.
All warrants issued by the state which have not been
presented for payment within six months of its date of issuance
shall be considered stale-dated and subject to the custody of
this state as abandoned property. All records and information
regarding stale-dated warrants, in the custody, control or
possession of the treasurer shall be subject to the
confidentiality section of this article. All records and
information regarding stale-dated warrants are exempt from the
provisions of chapter twenty-nine-b of the code.
NOTE: The purpose of this bill is to provide that all
warrants issued by the state which have not been presented for
payment within six months of its date of issuance shall be
considered abandoned property; and that the abandonment period on
all property held by the State Treasurer shall be reduced to five
years.
Section eight-c, article eight, chapter thirty-six is new;
therefore, strike-throughs and underscoring have been omitted.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.