Senate Bill No. 433
(By Senator Craigo)
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[Introduced March 22, 1993; referred to the Committee
on the Judiciary.]
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A BILL to amend and reenact sections two, three, four, five,
seven, eight, eight-b and nine, article eight, chapter
thirty-six of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to unclaimed
property; and time period for abandonment.
Be it enacted by the Legislature of West Virginia:
That sections two, three, four, five, seven, eight, eight-b
and nine, article eight, chapter thirty-six of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended and reenacted 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 lawfullybe withheld, if the owner has not within the immediately
preceding
seven 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
seven 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 (1) or (2) of this subdivision (a) there shall
thereafter be no presumption of abandonment unless and until
another
seven 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
seven
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 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-yearperiod, 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 (1), (2) or (3) of this subdivision (b) there shall
thereafter be no presumption of abandonment unless and until
another fifteen 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-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 than may lawfully be withheld, if the owner
has not within the immediately preceding
seven 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
seven 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 (1) or (2) of this subdivision (c), there shall
thereafter be no presumption of abandonment unless and until
another
seven 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
seven 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 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-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 organizationconcerning 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 (1), (2) or (3) of this subdivision (d), there shall
thereafter be no presumption of abandonment unless and until
another fifteen 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-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
seven 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 otherreason, or any surplus amounts arising from the sale thereof
pursuant to law, that have been unclaimed by the owner for more
than
seven 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.
§36-8-3. Unclaimed funds held by life insurance corporations.
(a) Unclaimed funds, as defined in this section, held and
owing by a life insurance corporation shall be presumed abandoned
if the last-known address, according to the records of the
corporation, of the person entitled to the funds is within this
state. If a person other than the insured or annuitant is
entitled to the funds and no address of such person is known to
the corporation or if it is not definite and certain from the
records of the corporation what person is entitled to the funds,
it is presumed that the last-known address of the person entitledto the funds is the same as the last-known address of the insured
or annuitant according to the records of the corporation.
(b) "Unclaimed funds," as used in this section, means all
moneys held and owing by any life insurance corporation unclaimed
and unpaid for more than
seven five years after the moneys became
due and payable as established from the records of the
corporation under any life or endowment insurance policy or
annuity contract which has matured or terminated. A life
insurance policy not matured by actual proof of the death of the
insured is deemed to be matured and the proceeds thereof are
deemed to be due and payable if such policy was in force when the
insured attained the limiting age under the mortality table on
which the reserve is based, unless the person appearing entitled
thereto has within the preceding
seven five years, (1) assigned,
readjusted, or paid premiums on the policy, or subjected the
policy to loan, or (2) corresponded in writing with the life
insurance corporation concerning the policy. Moneys otherwise
payable according to the records of the corporation are deemed
due and payable although the policy or contract has not been
surrendered as required.
§36-8-4. Deposits and refunds held by utilities.
The following funds held or owing by any utility are
presumed abandoned:
(a) Any deposit made subsequent to one thousand nine hundred
fifty-seven, by a subscriber with a utility to secure payment
for, or any sum paid in advance for, utility services to befurnished in this state, less any lawful deductions, that has
remained unclaimed by the person appearing on the records of the
utility entitled thereto for more than
seven five years after the
termination of the services for which the deposit or advance
payment was made.
(b) Any sum which a utility has been ordered to refund and
which was received subsequent to one thousand nine hundred fifty-
seven for utility services rendered in this state, together with
any interest thereon, less any lawful deductions, that has
remained unclaimed by the person appearing on the records of the
utility entitled thereto for more than
seven five years after the
date it became payable in accordance with the final determination
or order providing for the refund.
§36-8-5. Undistributed dividends and distributions of business
associations.
Any stock or other certificate of ownership, or any
dividend, profit, distribution, interest, payment on principal,
or other sum held or owing by a business association for or to a
shareholder, certificate holder, member, bondholder, or other
security holder, or a participating patron of a cooperative, who
has not claimed it, or corresponded in writing with the business
association concerning it, within
seven five years after the date
prescribed for payment or delivery, is presumed abandoned if:
(a) It is held or owing by a business association organized
under the laws of or created in this state; or
(b) It is held or owing by a business association doingbusiness in this state, but not organized under the laws of or
created in this state, and the records of the business
association indicate that the last-known address of the person
entitled thereto is in this state.
§36-8-7. Property held by fiduciaries.
All intangible personal property and any income or increment
thereon, held in a fiduciary capacity for the benefit of another
person is presumed abandoned unless the owner has, within
seven
five years after the final date for distribution of such property
and the cessation of all active fiduciary duties as required by
law or the instrument under which the fiduciary is acting,
increased or decreased the principal, accepted payment of
principal or income, corresponded in writing with the fiduciary
concerning the property, or otherwise indicated an interest as
evidence by a memorandum on file with the fiduciary:
(a) If the property is held by a banking organization or a
financial organization, or by a business association organized
under the laws of or created in this state; or
(b) If it is held by a business association, doing business
in this state, but not organized under the laws of or created in
this state, and the records of the business association indicate
that the last-known address of the person entitled thereto is in
this state; or
(c) If it is held in this state by any other person.
§36-8-8. Property held by courts and public officers and
agencies.
(a) All intangible personal property held for the owner by
any state or federal court, public corporation, public authority,
or public officer in this state, or a political subdivision
thereof, that has remained unclaimed by the owner for more than
seven five years is presumed abandoned:
Provided,
That this
provision shall in no way affect such property in the custody or
control of any state or federal court in any pending action:
Provided, however, That if any federal statute provides for the
distribution of any unclaimed property subject to the
jurisdiction of a federal court, this statute shall not apply.
(b) Notwithstanding the provisions of subsection (a) of this
section, all intangible personal property in the custody or
control of a general receiver of a state court of record
appointed pursuant to the provisions of article six, chapter
fifty-one of this code, that has remained unclaimed by the owner
for more than seven five years is presumed abandoned:
Provided,
That any such property in the custody or control of any such
general receiver in which there is any contingent remainder
interest, or any vested remainder interest which is subject to
open to let in persons not yet in being or to open to let in
members of any class, or any executory interest, or executory
devise interest, or any base, qualified, conditional, or limited
fee estate or interest, or any other qualified, conditional,
limited or determinable estate or interest, shall not be presumed
abandoned until such property has remained unclaimed for more
than seven five years after such estate or interest has vested orany such class has closed and the persons entitled to such
property have been determined.
§36-8-8b. Presumption of abandonment of personal property held
by federal government.
(a) All tangible personal property or intangible personal
property, including choses in action in amounts certain, and all
debts owed, entrusted funds or other property held by any
federal, state or local government or governmental subdivision,
agency, entity, officer or appointee thereof, shall be presumed
abandoned in this state if the last-known address of the owner of
the property is in this state and the property has remained
unclaimed for seven five years: Provided, That if another
provision of law provides for a presumption of abandonment and
custodial taking of the subject property by this state upon the
passage of a longer period of time, such longer period of time
shall control.
(b) This section shall apply to all abandoned property held
by any federal, state or local government or governmental
subdivision, agency, entity, officer or appointee thereof, at the
time of enactment, or at any time thereafter, regardless of when
such property became or becomes presumptively abandoned.
§36-8-9. Miscellaneous personal property held for another
person; exception; prohibiting the levying of charges on
inactive savings account.
All personal property not otherwise covered by this article,
including any income or increment thereon and after deducting anylawful charges, that is held or owing in this state in the
ordinary course of the holder's business and has remained
unclaimed by the owner for more than seven five years after it
became payable or distributable is presumed abandoned: Provided,
That this section shall not apply to such property held or owing
by a utility prior to one thousand nine hundred fifty-seven:
Provided, however, That notwithstanding the provisions of section
two of this article, no banking or other financial organization
or institution shall, after the effective date of this section,
demand, collect, charge or contract to receive any charge due to
dormancy or inactivity on any interest bearing savings or time
deposit for any period of time prior to the withdrawal of such
funds by the depositor, his personal agent or representative, or
the accrual under this article of the right of the state to
deposit or sell as abandoned property any such deposit. For
purposes of this proviso, any interest bearing savings or time
deposit shall be deemed to be dormant or inactive if the
depositor, his personal agent or representative has not within
the immediately preceding two years increased or decreased the
amount of the deposit.
NOTE: The purpose of this bill is to reduce from seven
years to five years the time in which property can be presumed to
be abandoned.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
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