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.