By Goodman H.B. No. 537
75R3912 CAS-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Uniform Unclaimed Property Act; providing civil
1-3 penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 72, Property Code, is amended to read as
1-6 follows:
1-7 CHAPTER 72. UNIFORM UNCLAIMED PROPERTY ACT
1-8 [ABANDONMENT OF PERSONAL PROPERTY]
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 72.001. SHORT TITLE. This chapter may be cited as the
1-11 Uniform Unclaimed Property Act (1995).
1-12 Sec. 72.002. DEFINITIONS. In this chapter:
1-13 (1) "Administrator" means the comptroller.
1-14 (2) "Apparent owner" means a person whose name appears
1-15 on the records of a holder as the person entitled to property held,
1-16 issued, or owing by the holder.
1-17 (3) "Business association" means a corporation, joint
1-18 stock company, investment company, partnership, unincorporated
1-19 association, joint venture, limited liability company, business
1-20 trust, trust company, safe deposit company, financial organization,
1-21 insurance company, mutual fund, utility, or other business entity
1-22 consisting of one or more persons, whether or not for profit.
1-23 (4) "Domicile" means the state of incorporation of a
1-24 corporation and the state of the principal place of business of a
2-1 holder other than a corporation.
2-2 (5) "Financial organization" means a savings and loan
2-3 association, savings bank, bank, banking organization, or credit
2-4 union.
2-5 (6) "Holder" means a person obligated to hold for the
2-6 account of, or deliver or pay to, the owner property that is
2-7 subject to this chapter.
2-8 (7) "Insurance company" means an association,
2-9 corporation, or fraternal or mutual benefit organization, whether
2-10 or not for profit, engaged in the business of providing life
2-11 endowments, annuities, or insurance, including accident, burial,
2-12 casualty, credit life, contract performance, dental, disability,
2-13 fidelity, fire, health, hospitalization, illness, life,
2-14 malpractice, marine, mortgage, surety, wage protection, and
2-15 workers' compensation insurance.
2-16 (8) "Mineral" means gas; oil; coal; other gaseous,
2-17 liquid, and solid hydrocarbons; oil shale; cement material; sand
2-18 and gravel; road material; building stone; chemical raw material;
2-19 gemstone; fissionable and nonfissionable ores; colloidal and other
2-20 clay; steam and other geothermal resource; or any other substance
2-21 defined as a mineral by the law of this state.
2-22 (9) "Mineral proceeds" means amounts payable for the
2-23 extraction, production, or sale of minerals, or, upon the
2-24 abandonment of those payments, all payments that become payable
2-25 after abandonment. The term includes amounts payable:
2-26 (A) for the acquisition and retention of a
2-27 mineral lease, including bonuses, royalties, compensatory
3-1 royalties, shut-in royalties, minimum royalties, and delay rentals;
3-2 (B) for the extraction, production, or sale of
3-3 minerals, including net revenue interests, royalties, overriding
3-4 royalties, extraction payments, and production payments; and
3-5 (C) under an agreement or option, including a
3-6 joint operating agreement, unit agreement, pooling agreement, and
3-7 farm-out agreement.
3-8 (10) "Money order" includes an express money order and
3-9 a personal money order, on which the remitter is the purchaser.
3-10 The term does not include a bank money order or any other
3-11 instrument sold by a financial organization if the seller has
3-12 obtained the name and address of the payee.
3-13 (11) "Owner" means a person who has a legal or
3-14 equitable interest in property subject to this chapter or the
3-15 person's legal representative. The term includes a depositor in
3-16 the case of a deposit, a beneficiary in the case of a trust other
3-17 than a deposit in trust, and a creditor, claimant, or payee in the
3-18 case of other property.
3-19 (12) "Property" means tangible property described in
3-20 Section 72.052 or a fixed and certain interest in intangible
3-21 property that is held, issued, or owed in the course of a holder's
3-22 business, or by a government, governmental subdivision, agency, or
3-23 instrumentality, and all income or increments from property. The
3-24 term includes property that is referred to as or evidenced by:
3-25 (A) money, a check, draft, deposit, interest, or
3-26 dividend;
3-27 (B) credit balance, customer's overpayment, gift
4-1 certificate, security deposit, refund, credit memorandum, unpaid
4-2 wage, unused ticket, mineral proceeds, or unidentified remittance;
4-3 (C) stock or other evidence of ownership of an
4-4 interest in a business association or financial organization;
4-5 (D) a bond, debenture, note, or other evidence
4-6 of indebtedness;
4-7 (E) money deposited to redeem stocks, bonds,
4-8 coupons, or other securities or to make distributions;
4-9 (F) an amount due and payable under the terms of
4-10 an annuity or insurance policy, including policies providing life
4-11 insurance, property and casualty insurance, workers' compensation
4-12 insurance, or health and disability insurance; and
4-13 (G) an amount distributable from a trust or
4-14 custodial fund established under a plan to provide health, welfare,
4-15 pension, vacation, severance, retirement, death, stock purchase,
4-16 profit sharing, employee savings, supplemental unemployment
4-17 insurance, or similar benefits.
4-18 (13) "Record" means information that is inscribed on a
4-19 tangible medium or that is stored in an electronic or other medium
4-20 and is retrievable in perceivable form.
4-21 (14) "State" means a state of the United States, the
4-22 District of Columbia, the Commonwealth of Puerto Rico, or any
4-23 territory or insular possession subject to the jurisdiction of the
4-24 United States.
4-25 (15) "Utility" means:
4-26 (A) a retail public utility as defined by
4-27 Section 2.251, Public Utility Regulatory Act of 1995 (Article
5-1 1446c-0, Vernon's Texas Civil Statutes);
5-2 (B) a retail public utility as defined by
5-3 Section 13.002, Water Code; or
5-4 (C) a gas utility regulated under the Gas
5-5 Utility Regulatory Act (Article 1446e, Vernon's Texas Civil
5-6 Statutes), or a municipally owned gas utility.
5-7 Sec. 72.003. RULES. The administrator may adopt rules
5-8 necessary to carry out this chapter.
5-9 Sec. 72.004. UNIFORMITY OF APPLICATION AND CONSTRUCTION.
5-10 This chapter shall be applied and construed to effectuate its
5-11 general purpose to make uniform the law with respect to the subject
5-12 of this chapter among states enacting it.
5-13 Sec. 72.005. FOREIGN TRANSACTIONS. This chapter does not
5-14 apply to property held, due, and owing in a foreign country and
5-15 arising out of a foreign transaction.
5-16 (Sections 72.006-72.050 reserved for expansion
5-17 SUBCHAPTER B. PRESUMPTIONS
5-18 Sec. 72.051. PRESUMPTIONS OF ABANDONMENT. (a) Property is
5-19 presumed abandoned if it is unclaimed by the apparent owner during
5-20 the time set forth below for the particular property:
5-21 (1) traveler's check, 15 years after issuance;
5-22 (2) money order, seven years after issuance;
5-23 (3) stock or other equity interest in a business
5-24 association or financial organization, including a security
5-25 entitlement under Chapter 8, Business & Commerce Code, five years
5-26 after the earlier of:
5-27 (A) the date of the most recent dividend, stock
6-1 split, or other distribution unclaimed by the apparent owner; or
6-2 (B) the date of the second mailing of a
6-3 statement of account or other notification or communication that
6-4 was returned as undeliverable or after the holder discontinued
6-5 mailings, notifications, or communications to the apparent owner;
6-6 (4) debt of a business association or financial
6-7 organization, other than a bearer bond or an original issue
6-8 discount bond, five years after the date of the most recent
6-9 interest payment unclaimed by the apparent owner;
6-10 (5) a demand, savings, or time deposit, including a
6-11 deposit that is automatically renewable, five years after the
6-12 earlier of maturity or the date of the last indication by the owner
6-13 of interest in the property, except that a deposit that is
6-14 automatically renewable is deemed matured for purposes of this
6-15 section on its initial date of maturity, unless the owner has
6-16 consented to a renewal at or about the time of the renewal and the
6-17 consent is in writing or is evidenced by a memorandum or other
6-18 record on file with the holder;
6-19 (6) money or credits owed to a customer as a result of
6-20 a retail business transaction, three years after the obligation
6-21 accrued;
6-22 (7) gift certificate, three years after December 31 of
6-23 the year in which the certificate was sold, but if redeemable in
6-24 merchandise only, the amount abandoned is deemed to be 60 percent
6-25 of the certificate's face value;
6-26 (8) amount owed by an insurer on a life or endowment
6-27 insurance policy or an annuity that has matured or terminated,
7-1 three years after the obligation to pay arose or, in the case of a
7-2 policy or annuity payable upon proof of death, three years after
7-3 the insured has attained, or would have attained if living, the
7-4 limiting age under the mortality table on which the reserve is
7-5 based;
7-6 (9) property distributable by a business association
7-7 or financial organization in a course of dissolution, one year
7-8 after the property becomes distributable;
7-9 (10) property received by a court as proceeds of a
7-10 class action, and not distributed pursuant to the judgment, one
7-11 year after the distribution date;
7-12 (11) property held by a court, government,
7-13 governmental subdivision, agency, or instrumentality, one year
7-14 after the property becomes distributable;
7-15 (12) wages or other compensation for personal
7-16 services, one year after the compensation becomes payable;
7-17 (13) deposit or refund owed to a subscriber by a
7-18 utility, one year after the deposit or refund becomes payable;
7-19 (14) property in an individual retirement account,
7-20 defined benefit plan, or other account or plan that is qualified
7-21 for tax deferral under the income tax laws of the United States,
7-22 three years after the earliest of the date of the distribution or
7-23 attempted distribution of the property, the date of the required
7-24 distribution as stated in the plan or trust agreement governing the
7-25 plan, or the date, if determinable by the holder, specified in the
7-26 income tax laws of the United States by which distribution of the
7-27 property must begin in order to avoid a tax penalty; and
8-1 (15) all other property, five years after the owner's
8-2 right to demand the property or after the obligation to pay or
8-3 distribute the property arises, whichever first occurs.
8-4 (b) At the time that an interest is presumed abandoned under
8-5 Subsection (a), any other property right accrued or accruing to the
8-6 owner as a result of the interest, and not previously presumed
8-7 abandoned, is also presumed abandoned.
8-8 (c) Property is unclaimed if, for the applicable period set
8-9 forth in Subsection (a), the apparent owner has not communicated in
8-10 writing or by other means reflected in a contemporaneous record
8-11 prepared by or on behalf of the holder, with the holder concerning
8-12 the property or the account in which the property is held, and has
8-13 not otherwise indicated an interest in the property. A
8-14 communication with an owner by a person other than the holder or
8-15 its representative who has not in writing identified the property
8-16 to the owner is not an indication of interest in the property by
8-17 the owner.
8-18 (d) An indication of an owner's interest in property
8-19 includes:
8-20 (1) the presentment of a check or other instrument of
8-21 payment of a dividend or other distribution made with respect to an
8-22 account or underlying stock or other interest in a business
8-23 association or financial organization or, in the case of a
8-24 distribution made by electronic or similar means, evidence that the
8-25 distribution has been received;
8-26 (2) owner-directed activity in the account in which
8-27 the property is held, including a direction by the owner to
9-1 increase, decrease, or change the amount or type of property held
9-2 in the account;
9-3 (3) the making of a deposit to or withdrawal from a
9-4 bank account; and
9-5 (4) the payment of a premium with respect to a
9-6 property interest in an insurance policy, except that the
9-7 application of an automatic premium loan provision or other
9-8 nonforfeiture provision contained in an insurance policy does not
9-9 prevent a policy from maturing or terminating if the insured has
9-10 died or the insured or the beneficiary of the policy has otherwise
9-11 become entitled to the proceeds before the depletion of the cash
9-12 surrender value of a policy by the application of those provisions.
9-13 (e) Property is payable or distributable for purposes of
9-14 this chapter notwithstanding the owner's failure to make demand or
9-15 present an instrument or document otherwise required to obtain
9-16 payment.
9-17 Sec. 72.052. CONTENTS OF SAFE DEPOSIT BOX OR OTHER
9-18 SAFEKEEPING DEPOSITORY. Tangible property held in a safe deposit
9-19 box or other safekeeping depository in this state in the ordinary
9-20 course of the holder's business and proceeds resulting from the
9-21 sale of the property permitted by other law are presumed abandoned
9-22 if the property remains unclaimed by the owner for more than five
9-23 years after expiration of the lease or rental period on the box or
9-24 other depository.
9-25 (Sections 72.053-72.100 reserved for expansion
9-26 SUBCHAPTER C. HOLDERS OF PROPERTY
9-27 Sec. 72.101. RULES FOR TAKING CUSTODY. Except as otherwise
10-1 provided in this chapter or by other statute of this state,
10-2 property that is presumed abandoned, whether located in this or
10-3 another state, is subject to the custody of this state if:
10-4 (1) the last known address of the apparent owner, as
10-5 shown on the records of the holder, is in this state;
10-6 (2) the records of the holder do not reflect the
10-7 identity of the person entitled to the property and it is
10-8 established that the last known address of the person entitled to
10-9 the property is in this state;
10-10 (3) the records of the holder do not reflect the last
10-11 known address of the apparent owner and it is established that:
10-12 (A) the last known address of the person
10-13 entitled to the property is in this state; or
10-14 (B) the holder is domiciled in this state or is
10-15 a government or governmental subdivision, agency, or
10-16 instrumentality of this state and has not previously paid or
10-17 delivered the property to the state of the last known address of
10-18 the apparent owner or other person entitled to the property;
10-19 (4) the last known address of the apparent owner, as
10-20 shown on the records of the holder, is in a state that does not
10-21 provide for the escheat or custodial taking of the property and the
10-22 holder is domiciled in this state or is a government or
10-23 governmental subdivision, agency, or instrumentality of this state;
10-24 (5) the last known address of the apparent owner, as
10-25 shown on the records of the holder, is in a foreign country and the
10-26 holder is domiciled in this state or is a government or
10-27 governmental subdivision, agency, or instrumentality of this state;
11-1 (6) the transaction out of which the property arose
11-2 occurred in this state, the holder is domiciled in a state that
11-3 does not provide for the escheat or custodial taking of the
11-4 property, and the last known address of the apparent owner or other
11-5 person entitled to the property is unknown or is in a state that
11-6 does not provide for the escheat or custodial taking of the
11-7 property; or
11-8 (7) the property is a traveler's check or money order
11-9 purchased in this state, or the issuer of the traveler's check or
11-10 money order has its principal place of business in this state and
11-11 the issuer's records show that the instrument was purchased in a
11-12 state that does not provide for the escheat or custodial taking of
11-13 the property, or do not show the state in which the instrument was
11-14 purchased.
11-15 Sec. 72.102. DORMANCY CHARGE. A holder may deduct from
11-16 property presumed abandoned a charge imposed by reason of the
11-17 owner's failure to claim the property within a specified time only
11-18 if there is a valid and enforceable written contract between the
11-19 holder and the owner under which the holder may impose the charge
11-20 and the holder regularly imposes the charge, which is not
11-21 regularly reversed or otherwise canceled. The amount of the
11-22 deduction is limited to an amount that is not unconscionable.
11-23 Sec. 72.103. BURDEN OF PROOF AS TO PROPERTY EVIDENCED BY
11-24 RECORD OF CHECK OR DRAFT. A record of the issuance of a check,
11-25 draft, or similar instrument is prima facie evidence of an
11-26 obligation. In claiming property from a holder who is also the
11-27 issuer, the administrator's burden of proof as to the existence and
12-1 amount of the property and its abandonment is satisfied by showing
12-2 issuance of the instrument and passage of the requisite period of
12-3 abandonment. Defenses of payment, satisfaction, discharge, and
12-4 want of consideration are affirmative defenses that must be
12-5 established by the holder.
12-6 Sec. 72.104. REPORT OF ABANDONED PROPERTY. (a) A holder of
12-7 property presumed abandoned shall make a report to the
12-8 administrator concerning the property.
12-9 (b) The report must be verified and must contain:
12-10 (1) a description of the property;
12-11 (2) except with respect to a traveler's check or money
12-12 order, the name, if known, and last known address, if any, and the
12-13 social security number or taxpayer identification number, if
12-14 readily ascertainable, of the apparent owner of property of the
12-15 value of $50 or more;
12-16 (3) an aggregated amount of items valued under $50
12-17 each;
12-18 (4) in the case of an amount of $50 or more held or
12-19 owing under an annuity or a life or endowment insurance policy, the
12-20 full name and last known address of the annuitant or insured and of
12-21 the beneficiary;
12-22 (5) in the case of property held in a safe deposit box
12-23 or other safekeeping depository, an indication of the place where
12-24 it is held and where it may be inspected by the administrator, and
12-25 any amounts owing to the holder;
12-26 (6) the date, if any, on which the property became
12-27 payable, demandable, or returnable, and the date of the last
13-1 transaction with the apparent owner with respect to the property;
13-2 and
13-3 (7) other information that the administrator by rule
13-4 prescribes as necessary for the administration of this chapter.
13-5 (c) If a holder of property presumed abandoned is a
13-6 successor to another person who previously held the property for
13-7 the apparent owner or the holder has changed its name while holding
13-8 the property, the holder shall file with the report its former
13-9 names, if any, and the known names and addresses of all previous
13-10 holders of the property.
13-11 (d) The report must be filed before November 1 of each year
13-12 and cover the 12 months next preceding July 1 of that year, but a
13-13 report with respect to a life insurance company must be filed
13-14 before May 1 of each year for the calendar year next preceding.
13-15 (e) The holder of property presumed abandoned shall send
13-16 written notice to the apparent owner, not more than 120 days or
13-17 less than 60 days before filing the report, stating that the holder
13-18 is in possession of property subject to this chapter, if:
13-19 (1) the holder has in its records an address for the
13-20 apparent owner which the holder's records do not disclose to be
13-21 inaccurate;
13-22 (2) the claim of the apparent owner is not barred by a
13-23 statute of limitations; and
13-24 (3) the value of the property is $50 or more.
13-25 (f) Before the date for filing the report, the holder of
13-26 property presumed abandoned may request the administrator to extend
13-27 the time for filing the report. The administrator may grant the
14-1 extension for good cause. The holder, upon receipt of the
14-2 extension, may make an interim payment on the amount the holder
14-3 estimates will ultimately be due, which terminates the accrual of
14-4 additional interest on the amount paid.
14-5 (g) The holder of property presumed abandoned shall file
14-6 with the report an affidavit stating that the holder has complied
14-7 with Subsection (e).
14-8 Sec. 72.105. PAYMENT OR DELIVERY OF ABANDONED PROPERTY. (a)
14-9 Except for property held in a safe deposit box or other safekeeping
14-10 depository, upon filing the report required by Section 72.104, the
14-11 holder of property presumed abandoned shall pay, deliver, or cause
14-12 to be paid or delivered to the administrator the property described
14-13 in the report as unclaimed, but if the property is an automatically
14-14 renewable deposit, and a penalty or forfeiture in the payment of
14-15 interest would result, the time for compliance is extended until a
14-16 penalty or forfeiture would no longer result. Tangible property
14-17 held in a safe deposit box or other safekeeping depository may not
14-18 be delivered to the administrator until 120 days after filing the
14-19 report required by Section 72.104.
14-20 (b) If the property reported to the administrator is a
14-21 security or security entitlement under Chapter 8, Business &
14-22 Commerce Code, the administrator is an appropriate person to make
14-23 an endorsement, instruction, or entitlement order on behalf of the
14-24 apparent owner to invoke the duty of the issuer or its transfer
14-25 agent or the securities intermediary to transfer or dispose of the
14-26 security or the security entitlement in accordance with Chapter 8,
14-27 Business & Commerce Code.
15-1 (c) If the holder of property reported to the administrator
15-2 is the issuer of a certificated security, the administrator has the
15-3 right to obtain a replacement certificate pursuant to Section
15-4 8.405, Business & Commerce Code, but an indemnity bond is not
15-5 required.
15-6 (d) An issuer, the holder, and any transfer agent or other
15-7 person acting pursuant to the instructions of and on behalf of the
15-8 issuer or holder in accordance with this section is not liable to
15-9 the apparent owner and must be indemnified against claims of any
15-10 person in accordance with Section 72.152.
15-11 (Sections 72.106-72.150 reserved for expansion
15-12 SUBCHAPTER D. POWERS AND DUTIES OF ADMINISTRATOR
15-13 Sec. 72.151. NOTICE AND PUBLICATION OF LISTS OF ABANDONED
15-14 PROPERTY. (a) The administrator shall publish a notice not later
15-15 than November 30 of the year next following the year in which
15-16 abandoned property has been paid or delivered to the administrator.
15-17 The notice must be published in a newspaper of general circulation
15-18 in the county of this state in which is located the last known
15-19 address of any person named in the notice. If a holder does not
15-20 report an address for the apparent owner, or the address is outside
15-21 this state, the notice must be published in the county in which the
15-22 holder has its principal place of business within this state or
15-23 another county that the administrator reasonably selects. The
15-24 advertisement must be in a form that, in the judgment of the
15-25 administrator, is likely to attract the attention of the apparent
15-26 owner of the unclaimed property. The form must contain:
15-27 (1) the name of each person appearing to be the owner
16-1 of the property, as set forth in the report filed by the holder;
16-2 (2) the last known address or location of each person
16-3 appearing to be the owner of the property, if an address or
16-4 location is set forth in the report filed by the holder;
16-5 (3) a statement explaining that property of the owner
16-6 is presumed to be abandoned and has been taken into the protective
16-7 custody of the administrator; and
16-8 (4) a statement that information about the property
16-9 and its return to the owner is available to a person having a legal
16-10 or beneficial interest in the property, upon request to the
16-11 administrator.
16-12 (b) The administrator is not required to advertise the name
16-13 and address or location of an owner of property having a total
16-14 value less than $50, or information concerning a traveler's check,
16-15 money order, or similar instrument.
16-16 Sec. 72.152. CUSTODY BY STATE; RECOVERY BY HOLDER; DEFENSE
16-17 OF HOLDER. (a) In this section, payment or delivery is made in
16-18 "good faith" if:
16-19 (1) payment or delivery was made in a reasonable
16-20 attempt to comply with this chapter;
16-21 (2) the holder was not then in breach of a fiduciary
16-22 obligation with respect to the property and had a reasonable basis
16-23 for believing, based on the facts then known, that the property was
16-24 presumed abandoned; and
16-25 (3) there is no showing that the records under which
16-26 the payment or delivery was made did not meet reasonable commercial
16-27 standards of practice.
17-1 (b) Upon payment or delivery of property to the
17-2 administrator, the state assumes custody and responsibility for the
17-3 safekeeping of the property. A holder who pays or delivers
17-4 property to the administrator in good faith is relieved of all
17-5 liability arising after payment or delivery with respect to the
17-6 property.
17-7 (c) A holder who has paid money to the administrator
17-8 pursuant to this chapter may subsequently make payment to a person
17-9 reasonably appearing to the holder to be entitled to payment. Upon
17-10 a filing by the holder of proof of payment and proof that the payee
17-11 was entitled to the payment, the administrator shall promptly
17-12 reimburse the holder for the payment without imposing a fee or
17-13 other charge. If reimbursement is sought for a payment made on a
17-14 negotiable instrument, including a traveler's check or money order,
17-15 the holder must be reimbursed upon filing proof that the instrument
17-16 was duly presented and that payment was made to a person who
17-17 reasonably appeared to be entitled to payment. The holder must be
17-18 reimbursed for payment made even if the payment was made to a
17-19 person whose claim was barred under Section 72.301.
17-20 (d) A holder who has delivered property other than money to
17-21 the administrator pursuant to this chapter may reclaim the property
17-22 if it is still in the possession of the administrator, without
17-23 paying any fee or other charge, upon filing proof that the
17-24 apparent owner has claimed the property from the holder.
17-25 (e) The administrator may accept a holder's affidavit as
17-26 sufficient proof of the holder's right to recover money and
17-27 property under this section.
18-1 (f) If a holder pays or delivers property to the
18-2 administrator in good faith and after payment or delivery another
18-3 person claims the property from the holder or another state claims
18-4 the money or property under its laws relating to escheat or
18-5 abandoned or unclaimed property, the administrator, upon written
18-6 notice of the claim, shall defend the holder against the claim and
18-7 indemnify the holder against any liability on the claim resulting
18-8 from payment or delivery of the property to the administrator.
18-9 (g) Property removed from a safe deposit box or other
18-10 safekeeping depository is received by the administrator subject to
18-11 the holder's right to be reimbursed for the cost of the opening and
18-12 to any valid lien or contract providing for the holder to be
18-13 reimbursed for unpaid rent or storage charges. The administrator
18-14 shall reimburse the holder out of the proceeds remaining after
18-15 deducting the expense incurred by the administrator in selling the
18-16 property.
18-17 Sec. 72.153. CREDITING OF DIVIDENDS, INTEREST, AND
18-18 INCREMENTS TO OWNER'S ACCOUNT. If property other than money is
18-19 delivered to the administrator under this chapter, the owner is
18-20 entitled to receive from the administrator any income or gain
18-21 realized or accruing on the property at or before liquidation or
18-22 conversion of the property into money. If the property was an
18-23 interest bearing demand, savings, or time deposit, including a
18-24 deposit that is automatically renewable, the administrator shall
18-25 pay interest at the rate specified by Article 1.03, Title 79,
18-26 Revised Statutes (Article 5069-1.03, Vernon's Texas Civil
18-27 Statutes), or any lesser rate the property earned while in the
19-1 possession of the holder. Interest begins to accrue when the
19-2 property is delivered to the administrator and ceases on the
19-3 earlier of the expiration of 10 years after delivery or the date on
19-4 which payment is made to the owner. Interest on interest bearing
19-5 property is not payable for any period before the effective date of
19-6 this chapter, unless authorized by law superseded by this chapter.
19-7 Sec. 72.154. PUBLIC SALE OF ABANDONED PROPERTY. (a) Except
19-8 as otherwise provided in this section, the administrator, within
19-9 three years after the receipt of abandoned property, shall sell it
19-10 to the highest bidder at public sale at a location in the state
19-11 which in the judgment of the administrator affords the most
19-12 favorable market for the property. The administrator may decline
19-13 the highest bid and reoffer the property for sale if the
19-14 administrator considers the bid to be insufficient. The
19-15 administrator need not offer the property for sale if the
19-16 administrator considers that the probable cost of sale will exceed
19-17 the proceeds of the sale. A sale held under this section must be
19-18 preceded by a single publication of notice, at least three weeks
19-19 before sale, in a newspaper of general circulation in the county in
19-20 which the property is to be sold.
19-21 (b) Securities listed on an established stock exchange must
19-22 be sold at prices prevailing on the exchange at the time of sale.
19-23 Other securities may be sold over the counter at prices prevailing
19-24 at the time of sale or by any reasonable method selected by the
19-25 administrator. If securities are sold by the administrator before
19-26 the expiration of three years after their delivery to the
19-27 administrator, a person making a claim under this chapter before
20-1 the end of the three-year period is entitled to the proceeds of the
20-2 sale of the securities or the market value of the securities at the
20-3 time the claim is made, whichever is greater, plus dividends,
20-4 interest, and other increments on those proceeds or securities up
20-5 to the time the claim is made, less any deduction for expenses of
20-6 sale. A person making a claim under this chapter after the
20-7 expiration of the three-year period is entitled to receive the
20-8 securities delivered to the administrator by the holder, if they
20-9 still remain in the custody of the administrator, or the net
20-10 proceeds received from sale, and is not entitled to receive any
20-11 appreciation in the value of the property occurring after delivery
20-12 to the administrator, except in a case of intentional misconduct or
20-13 malfeasance by the administrator.
20-14 (c) A purchaser of property at a sale conducted by the
20-15 administrator pursuant to this chapter takes the property free of
20-16 all claims of the owner or previous holder and of all persons
20-17 claiming through or under them. The administrator shall execute
20-18 all documents necessary to complete the transfer of ownership.
20-19 Sec. 72.155. DEPOSIT OF FUNDS. (a) Except as otherwise
20-20 provided by this section, the administrator shall promptly deposit
20-21 to the credit of the general revenue fund all funds received under
20-22 this chapter, including the proceeds from the sale of abandoned
20-23 property under Section 72.154. The administrator shall retain in a
20-24 separate trust fund at least $100,000 from which the administrator
20-25 shall pay claims allowed. The administrator shall record the name
20-26 and last known address of each person appearing from the holders'
20-27 reports to be entitled to the property and the name and last known
21-1 address of each insured person or annuitant and beneficiary and
21-2 with respect to each policy or annuity listed in the report of an
21-3 insurance company, its number, the name of the company, and the
21-4 amount due.
21-5 (b) Before making a deposit to the credit of the general
21-6 revenue fund, the administrator may deduct:
21-7 (1) expenses of sale of abandoned property;
21-8 (2) costs of mailing and publication in connection
21-9 with abandoned property;
21-10 (3) reasonable service charges; and
21-11 (4) expenses incurred in examining records of holders
21-12 of property and in collecting the property from those holders.
21-13 (Sections 72.156-72.200 reserved for expansion
21-14 SUBCHAPTER E. CLAIMS
21-15 Sec. 72.201. CLAIM OF ANOTHER STATE TO RECOVER PROPERTY.
21-16 (a) After property has been paid or delivered to the administrator
21-17 under this chapter, another state may recover the property if:
21-18 (1) the property was paid or delivered to the custody
21-19 of this state because the records of the holder did not reflect a
21-20 last known location of the apparent owner within the borders of the
21-21 other state and the other state establishes that the apparent owner
21-22 or other person entitled to the property was last known to be
21-23 located within the borders of that state and under the laws of that
21-24 state the property has escheated or become subject to a claim of
21-25 abandonment by that state;
21-26 (2) the property was paid or delivered to the custody
21-27 of this state because the laws of the other state did not provide
22-1 for the escheat or custodial taking of the property, and under the
22-2 laws of that state subsequently enacted the property has escheated
22-3 or become subject to a claim of abandonment by that state;
22-4 (3) the records of the holder were erroneous in that
22-5 they did not accurately identify the owner of the property and the
22-6 last known location of the owner within the borders of another
22-7 state and under the laws of that state the property has escheated
22-8 or become subject to a claim of abandonment by that state;
22-9 (4) the property was subjected to custody by this
22-10 state under Section 72.101(6) and under the laws of the state of
22-11 domicile of the holder the property has escheated or become subject
22-12 to a claim of abandonment by that state; or
22-13 (5) the property is a sum payable on a traveler's
22-14 check, money order, or similar instrument that was purchased in the
22-15 other state and delivered into the custody of this state under
22-16 Section 72.101(7), and under the laws of the other state the
22-17 property has escheated or become subject to a claim of abandonment
22-18 by that state.
22-19 (b) A claim of another state to recover escheated or
22-20 abandoned property must be presented in a form prescribed by the
22-21 administrator, who shall decide the claim within 90 days after it
22-22 is presented. The administrator shall allow the claim upon
22-23 determining that the other state is entitled to the abandoned
22-24 property under Subsection (a).
22-25 (c) The administrator shall require another state, before
22-26 recovering property under this section, to agree to indemnify this
22-27 state and its officers and employees against any liability on a
23-1 claim to the property.
23-2 Sec. 72.202. FILING CLAIM WITH ADMINISTRATOR; HANDLING OF
23-3 CLAIMS BY ADMINISTRATOR. (a) A person, excluding another state,
23-4 claiming property paid or delivered to the administrator may file a
23-5 claim on a form prescribed by the administrator and verified by the
23-6 claimant.
23-7 (b) Within 90 days after a claim is filed, the administrator
23-8 shall allow or deny the claim and give written notice of the
23-9 decision to the claimant. If the claim is denied, the
23-10 administrator shall inform the claimant of the reasons for the
23-11 denial and specify what additional evidence is required before the
23-12 claim will be allowed. The claimant may then file a new claim with
23-13 the administrator or maintain an action under Section 72.203.
23-14 (c) Within 30 days after a claim is allowed, the property or
23-15 the net proceeds of a sale of the property must be delivered or
23-16 paid by the administrator to the claimant, together with any
23-17 dividend, interest, or other increment to which the claimant is
23-18 entitled under Sections 72.153 and 72.154.
23-19 (d) A holder who pays the owner for property that has been
23-20 delivered to the state and which, if claimed from the administrator
23-21 by the owner, would be subject to an increment under Sections
23-22 72.153 and 72.154 may recover from the administrator the amount of
23-23 the increment.
23-24 Sec. 72.203. ACTION TO ESTABLISH CLAIM. A person aggrieved
23-25 by a decision of the administrator or whose claim has not been
23-26 acted upon within 90 days after its filing may maintain an original
23-27 action to establish the claim in a district court in Travis County,
24-1 naming the administrator as a defendant. If the aggrieved person
24-2 establishes the claim in an action against the administrator, the
24-3 court may award the claimant reasonable attorney's fees.
24-4 (Sections 72.204-72.250 reserved for expansion
24-5 SUBCHAPTER F. DISPOSITION OF CERTAIN PROPERTY
24-6 Sec. 72.251. ELECTION TO TAKE PAYMENT OR DELIVERY. (a) The
24-7 administrator may decline to receive property reported under this
24-8 chapter which the administrator considers to have a value less than
24-9 the expenses of notice and sale.
24-10 (b) A holder, with the written consent of the administrator
24-11 and upon conditions and terms prescribed by the administrator, may
24-12 report and deliver property before the property is presumed
24-13 abandoned. Property so delivered must be held by the administrator
24-14 and is not presumed abandoned until it otherwise would be presumed
24-15 abandoned under this chapter.
24-16 Sec. 72.252. DESTRUCTION OR DISPOSITION OF PROPERTY HAVING
24-17 NO SUBSTANTIAL COMMERCIAL VALUE; IMMUNITY FROM LIABILITY. If the
24-18 administrator determines after investigation that property
24-19 delivered under this chapter has no substantial commercial value,
24-20 the administrator may destroy or otherwise dispose of the property
24-21 at any time. An action or proceeding may not be maintained against
24-22 the state or any officer or against the holder for or on account of
24-23 an act of the administrator under this section, except for
24-24 intentional misconduct or malfeasance.
24-25 (Sections 72.253-72.300 reserved for expansion
24-26 SUBCHAPTER G. PERIODS OF LIMITATION
24-27 Sec. 72.301. EXPIRATION OF PERIOD OF LIMITATION. The
25-1 expiration, before or after the effective date of this chapter, of
25-2 a period of limitation on the owner's right to receive or recover
25-3 property, whether specified by contract, statute, or court order,
25-4 does not preclude the property from being presumed abandoned or
25-5 affect a duty to file a report or to pay or deliver or transfer
25-6 property to the administrator as required by this chapter.
25-7 Sec. 72.302. PERIOD OF LIMITATION. (a) An action or
25-8 proceeding may not be maintained by the administrator to enforce
25-9 this chapter in regard to the reporting, delivery, or payment of
25-10 property more than 10 years after the holder specifically
25-11 identified the property in a report filed with the administrator or
25-12 gave express notice to the administrator of a dispute regarding the
25-13 property.
25-14 (b) In the absence of a report or other express notice as
25-15 specified under Subsection (a), the period of limitation is tolled.
25-16 The period of limitation is also tolled by the filing of a report
25-17 that is fraudulent.
25-18 (Sections 72.303-72.350 reserved for expansion
25-19 SUBCHAPTER H. REPORTS AND RECORDS
25-20 Sec. 72.351. REQUESTS FOR REPORTS AND EXAMINATION OF
25-21 RECORDS. (a) The administrator may require a person who has not
25-22 filed a report, or a person who the administrator believes has
25-23 filed an inaccurate, incomplete, or false report, to file a
25-24 verified report in a form specified by the administrator. The
25-25 report must state whether the person is holding property reportable
25-26 under this chapter, describe property not previously reported or as
25-27 to which the administrator has made inquiry, and specifically
26-1 identify and state the amounts of property that may be in issue.
26-2 (b) The administrator, at reasonable times and upon
26-3 reasonable notice, may examine the records of any person to
26-4 determine whether the person has complied with this chapter. The
26-5 administrator may conduct the examination even if the person
26-6 believes it is not in possession of any property that must be
26-7 reported, paid, or delivered under this chapter. The administrator
26-8 may contract with any other person to conduct the examination on
26-9 behalf of the administrator.
26-10 (c) The administrator at reasonable times may examine the
26-11 records of an agent, including a dividend disbursing agent or
26-12 transfer agent, of a business association or financial association
26-13 that is the holder of property presumed abandoned if the
26-14 administrator has given the notice required by Subsection (b) to
26-15 both the association or organization and the agent at least 90 days
26-16 before the examination.
26-17 (d) Documents and working papers obtained or compiled by the
26-18 administrator, or the administrator's agents, employees, or
26-19 designated representatives, in the course of conducting an
26-20 examination are confidential and are not public records, but the
26-21 documents and papers may be:
26-22 (1) used by the administrator in the course of an
26-23 action to collect unclaimed property or otherwise enforce this
26-24 chapter;
26-25 (2) used in joint examinations conducted with or
26-26 pursuant to an agreement with another state, the federal
26-27 government, or any other governmental subdivision, agency, or
27-1 instrumentality;
27-2 (3) produced pursuant to subpoena or court order; or
27-3 (4) disclosed to the abandoned property office of
27-4 another state for that state's use in circumstances equivalent to
27-5 those described in this subsection, if the other state is bound to
27-6 keep the documents and papers confidential.
27-7 (e) If an examination of the records of a person results in
27-8 the disclosure of property reportable under this chapter, the
27-9 administrator may assess the cost of the examination against the
27-10 holder at the rate of $200 a day for each examiner, or a greater
27-11 amount that is reasonable and was incurred, but the assessment may
27-12 not exceed the value of the property found to be reportable. The
27-13 cost of an examination made pursuant to Subsection (c) may be
27-14 assessed only against the business association or financial
27-15 organization.
27-16 (f) If, after the effective date of this chapter, a holder
27-17 does not maintain the records required by Section 72.352 and the
27-18 records of the holder available for the periods subject to this
27-19 chapter are insufficient to permit the preparation of a report, the
27-20 administrator may require the holder to report and pay to the
27-21 administrator the amount the administrator reasonably estimates, on
27-22 the basis of any available records of the holder or by any other
27-23 reasonable method of estimation, should have been but was not
27-24 reported.
27-25 Sec. 72.352. RETENTION OF RECORDS. (a) Except as otherwise
27-26 provided in Subsection (b), a holder required to file a report
27-27 under Section 72.104 shall maintain the records containing the
28-1 information required to be included in the report for 10 years
28-2 after the holder files the report, unless a shorter period is
28-3 provided by rule of the administrator.
28-4 (b) A business association or financial organization that
28-5 sells, issues, or provides to others for sale or issue in this
28-6 state, traveler's checks, money orders, or similar instruments
28-7 other than third-party bank checks, on which the business
28-8 association or financial organization is directly liable, shall
28-9 maintain a record of the instruments while they remain outstanding,
28-10 indicating the state and date of issue, for three years after the
28-11 holder files the report.
28-12 (Sections 72.353-72.400 reserved for expansion
28-13 SUBCHAPTER I. ENFORCEMENT; PENALTIES
28-14 Sec. 72.401. ENFORCEMENT. The administrator may maintain an
28-15 action in this or another state to enforce this chapter. The court
28-16 may award reasonable attorney's fees to the prevailing party.
28-17 Sec. 72.402. INTERSTATE AGREEMENTS AND COOPERATION; JOINT
28-18 AND RECIPROCAL ACTIONS WITH OTHER STATES. (a) The administrator
28-19 may enter into an agreement with another state to exchange
28-20 information relating to abandoned property or its possible
28-21 existence. The agreement may permit the other state, or another
28-22 person acting on behalf of a state, to examine records as
28-23 authorized in Section 72.351. The administrator by rule may
28-24 require the reporting of information needed to enable compliance
28-25 with an agreement made under this section and prescribe the form.
28-26 (b) The administrator may join with another state to seek
28-27 enforcement of this chapter against any person who is or may be
29-1 holding property reportable under this chapter.
29-2 (c) At the request of another state, the attorney general of
29-3 this state may maintain an action on behalf of the other state to
29-4 enforce, in this state, the unclaimed property laws of the other
29-5 state against a holder of property subject to escheat or a claim of
29-6 abandonment by the other state, if the other state has agreed to
29-7 pay expenses incurred by the attorney general in maintaining the
29-8 action.
29-9 (d) The administrator may request that the attorney general
29-10 of another state or another attorney commence an action in the
29-11 other state on behalf of the administrator. With the approval of
29-12 the attorney general of this state, the administrator may retain
29-13 any other attorney to commence an action in this state on behalf of
29-14 the administrator. This state shall pay all expenses, including
29-15 attorney's fees, in maintaining an action under this subsection.
29-16 With the administrator's approval, the expenses and attorney's fees
29-17 may be paid from money received under this chapter. The
29-18 administrator may agree to pay expenses and attorney's fees based
29-19 in whole or in part on a percentage of the value of any property
29-20 recovered in the action. Any expenses or attorney's fees paid
29-21 under this subsection may not be deducted from the amount that is
29-22 subject to the claim by the owner under this chapter.
29-23 Sec. 72.403. INTEREST AND PENALTIES. (a) A holder who
29-24 fails to report, pay, or deliver property within the time
29-25 prescribed by this chapter shall pay to the administrator interest
29-26 at the annual rate of two percentage points above the annual rate
29-27 of discount in effect on the date the property should have been
30-1 paid or delivered for the most recent issue of 52-week United
30-2 States Treasury bills on the property or value of the property from
30-3 the date the property should have been reported, paid, or
30-4 delivered.
30-5 (b) Except as otherwise provided in Subsection (c), a holder
30-6 who fails to report, pay, or deliver property within the time
30-7 prescribed by this chapter, or fails to perform other duties
30-8 imposed by this chapter, shall pay to the administrator, in
30-9 addition to interest as provided in Subsection (a), a civil penalty
30-10 of $200 for each day the report, payment, or delivery is withheld,
30-11 or the duty is not performed, up to a maximum of $5,000.
30-12 (c) A holder who willfully fails to report, pay, or deliver
30-13 property within the time prescribed by this chapter, or willfully
30-14 fails to perform other duties imposed by this chapter, shall pay to
30-15 the administrator, in addition to interest as provided in
30-16 Subsection (a), a civil penalty of $1,000 for each day the report,
30-17 payment, or delivery is withheld, or the duty is not performed, up
30-18 to a maximum of $25,000, plus 25 percent of the value of any
30-19 property that should have been but was not reported.
30-20 (d) A holder who makes a fraudulent report shall pay to the
30-21 administrator, in addition to interest as provided in Subsection
30-22 (a), a civil penalty of $1,000 for each day from the date a report
30-23 under this chapter was due, up to a maximum of $25,000, plus 25
30-24 percent of the value of any property that should have been but was
30-25 not reported.
30-26 (e) The administrator for good cause may waive, in whole or
30-27 in part, interest under Subsection (a) and penalties under
31-1 Subsections (b) and (c), and shall waive penalties if the holder
31-2 acted in good faith and without negligence.
31-3 (Sections 72.404-72.450 reserved for expansion
31-4 SUBCHAPTER J. AGREEMENTS TO LOCATE PROPERTY
31-5 Sec. 72.451. AGREEMENT MADE DURING CERTAIN PERIOD VOID. (a)
31-6 An agreement by an owner, the primary purpose of which is to
31-7 locate, deliver, recover, or assist in the recovery of property
31-8 that is presumed abandoned is void and unenforceable if it was
31-9 entered into during the period commencing on the date the property
31-10 was presumed abandoned and extending to a time that is 24 months
31-11 after the date the property is paid or delivered to the
31-12 administrator.
31-13 (b) This section does not apply to an owner's agreement with
31-14 an attorney to file a claim as to identified property or contest
31-15 the administrator's denial of a claim.
31-16 Sec. 72.452. REQUIREMENTS FOR ENFORCEABILITY. An agreement
31-17 by an owner, the primary purpose of which is to locate, deliver,
31-18 recover, or assist in the recovery of property is enforceable only
31-19 if the agreement:
31-20 (1) is in writing;
31-21 (2) clearly sets forth the nature of the property and
31-22 the services to be rendered;
31-23 (3) is signed by the apparent owner; and
31-24 (4) states the value of the property before and after
31-25 the fee or other compensation has been deducted.
31-26 Sec. 72.453. AGREEMENT CONCERNING MINERAL PROCEEDS. If an
31-27 agreement covered by this subchapter applies to mineral proceeds
32-1 and the agreement contains a provision to pay compensation that
32-2 includes a portion of the underlying minerals or any mineral
32-3 proceeds not then presumed abandoned, the provision is void and
32-4 unenforceable.
32-5 Sec. 72.454. UNCONSCIONABLE COMPENSATION. (a) An agreement
32-6 covered by this subchapter which provides for compensation that is
32-7 unconscionable is unenforceable except by the owner.
32-8 (b) An owner who has agreed to pay compensation that is
32-9 unconscionable, or the administrator on behalf of the owner, may
32-10 maintain an action to reduce the compensation to a conscionable
32-11 amount.
32-12 (c) The court may award reasonable attorney's fees to an
32-13 owner who prevails in the action.
32-14 (d) This section does not preclude an owner from asserting
32-15 that an agreement covered by this section is invalid on grounds
32-16 other than unconscionable compensation. [APPLICATION OF CHAPTER.
32-17 (a) Tangible or intangible personal property is subject to this
32-18 chapter if it is covered by Section 72.101 and:]
32-19 [(1) the last known address of the apparent owner, as
32-20 shown on the records of the holder, is in this state;]
32-21 [(2) the records of the holder do not disclose the
32-22 identity of the person entitled to the property, and it is
32-23 established that the last known address of the person entitled to
32-24 the property is in this state;]
32-25 [(3) the records of the holder do not disclose the
32-26 last known address of the apparent owner, and it is established
32-27 that:]
33-1 [(A) the last known address of the person
33-2 entitled to the property is in this state; or]
33-3 [(B) the holder is a domiciliary or a government
33-4 or governmental subdivision or agency of this state and has not
33-5 previously paid or delivered the property to the state of the last
33-6 known address of the apparent owner or other person entitled to the
33-7 property;]
33-8 [(4) the last known address of the apparent owner, as
33-9 shown on the records of the holder, is in a state that does not
33-10 provide by law for the escheat or custodial taking of the property
33-11 or is in a state in which the state's escheat or unclaimed property
33-12 law is not applicable to the property, and the holder is a
33-13 domiciliary or a government or governmental subdivision or agency
33-14 of this state;]
33-15 [(5) the last known address of the apparent owner, as
33-16 shown on the records of the holder, is in a foreign nation and the
33-17 holder is a domiciliary or a government or governmental subdivision
33-18 or agency of this state; or]
33-19 [(6) the transaction out of which the property arose
33-20 occurred in this state and:]
33-21 [(A) the last known address of the apparent
33-22 owner or other person entitled to the property is:]
33-23 [(i) unknown; or]
33-24 [(ii) in a state that does not provide by
33-25 law for the escheat or custodial taking of the property or in a
33-26 state in which the state's escheat or unclaimed property law is not
33-27 applicable to the property; and]
34-1 [(B) the holder is a domiciliary of a state that
34-2 does not provide by law for the escheat or custodial taking of the
34-3 property or a state in which the state's escheat or unclaimed
34-4 property law is not applicable to the property.]
34-5 [(b) This chapter supplements other chapters in this title,
34-6 and each chapter shall be followed to the extent applicable.]
34-7 [(c) This chapter applies to property held by life insurance
34-8 companies with the exception of unclaimed funds, as defined by
34-9 Section 3, Article 4.08, Insurance Code, held by those companies
34-10 that are subject to Article 4.08, Insurance Code.]
34-11 [(d) A holder of property presumed abandoned under this
34-12 chapter is subject to the procedures of Chapter 74.]
34-13 [(e) In this chapter, a holder is a person, wherever
34-14 organized or domiciled, who is:]
34-15 [(1) in possession of property that belongs to
34-16 another;]
34-17 [(2) a trustee; or]
34-18 [(3) indebted to another on an obligation.]
34-19 [(f) In this chapter, a corporation shall be deemed to be a
34-20 domiciliary of the state of its incorporation.]
34-21 [Sections 72.002-72.100 reserved for expansion]
34-22 [SUBCHAPTER B. PRESUMPTION OF ABANDONMENT]
34-23 [Sec. 72.101. PERSONAL PROPERTY PRESUMED ABANDONED.
34-24 (a) Except as provided by this section and Section 72.102,
34-25 personal property is presumed abandoned if, for longer than three
34-26 years:]
34-27 [(1) the existence and location of the owner of the
35-1 property is unknown to the holder of the property; and]
35-2 [(2) according to the knowledge and records of the
35-3 holder of the property, a claim to the property has not been
35-4 asserted or an act of ownership of the property has not been
35-5 exercised.]
35-6 [(b)(1) The three-year period leading to a presumption of
35-7 abandonment of stock or another intangible ownership interest in a
35-8 business association, the existence of which is evidenced by
35-9 records available to the association, commences on the first date
35-10 that either a sum payable as a result of the ownership interest is
35-11 unclaimed by the owner or a communication to the owner is returned
35-12 undelivered by the United States Postal Service.]
35-13 [(2) The running of the three-year period of
35-14 abandonment ceases immediately on the exercise of an act of
35-15 ownership interest or sum payable or a communication with the
35-16 association as evidenced by a memorandum or other record on file
35-17 with the association or its agents.]
35-18 [(3) At the time an ownership is presumed abandoned
35-19 under this section, any sum then held for interest or owing to the
35-20 owner as a result of the interest and not previously presumed
35-21 abandoned is presumed abandoned.]
35-22 [(4) Any stock or other intangible ownership interest
35-23 enrolled in a plan that provides for the automatic reinvestment of
35-24 dividends, distributions, or other sums payable as a result of the
35-25 ownership interest is subject to the presumption of abandonment as
35-26 provided by this section.]
35-27 [Sec. 72.102. TRAVELER'S CHECK AND MONEY ORDER. (a) A
36-1 traveler's check or money order is not presumed to be abandoned
36-2 under this chapter unless:]
36-3 [(1) the records of the issuer of the check or money
36-4 order indicate that it was purchased in this state;]
36-5 [(2) the issuer's principal place of business is in
36-6 this state and the issuer's records do not indicate the state in
36-7 which the check or money order was purchased; or]
36-8 [(3) the issuer's principal place of business is in
36-9 this state, the issuer's records indicate that the check or money
36-10 order was purchased in another state, and the laws of that state do
36-11 not provide for the escheat or custodial taking of the check or
36-12 money order.]
36-13 [(b) A traveler's check to which Subsection (a) applies is
36-14 presumed to be abandoned on the latest of:]
36-15 [(1) the 15th anniversary of the date on which the
36-16 check was issued;]
36-17 [(2) the 15th anniversary of the date on which the
36-18 issuer of the check last received from the owner of the check
36-19 written communication concerning the check; or]
36-20 [(3) the 15th anniversary of the date of the last
36-21 writing, on file with the issuer, that indicates the owner's
36-22 interest in the check.]
36-23 [(c) A money order to which Subsection (a) applies is
36-24 presumed to be abandoned on the latest of:]
36-25 [(1) the fifth anniversary of the date on which the
36-26 money order was issued;]
36-27 [(2) the fifth anniversary of the date on which the
37-1 issuer of the money order last received from the owner of the money
37-2 order written communication concerning the money order; or]
37-3 [(3) the fifth anniversary of the date of the last
37-4 writing, on file with the issuer, that indicates the owner's
37-5 interest in the money order.]
37-6 [Sec. 72.103. PRESERVATION OF PROPERTY. A holder of
37-7 abandoned property shall preserve the property and may not by any
37-8 procedure, including a deduction for service, maintenance, or other
37-9 charge, transfer, convert, or reduce the property to the profits or
37-10 assets of the holder.]
37-11 SECTION 2. Chapters 73-75, Property Code, are repealed.
37-12 SECTION 3. (a) An initial report filed under Chapter 72,
37-13 Property Code, as amended by this Act, for property that was not
37-14 required to be reported before the effective date of this Act but
37-15 which is subject to Chapter 72, Property Code, as amended by this
37-16 Act, must include all items of property that would have been
37-17 presumed abandoned during the 10-year period preceding the
37-18 effective date of this Act as if this Act had been in effect during
37-19 that period.
37-20 (b) This Act does not relieve a holder of a duty that arose
37-21 before the effective date of this Act to report, pay, or deliver
37-22 property. Except as otherwise provided in Section 72.302, Property
37-23 Code, as added by this Act, a holder who did not comply with the
37-24 law in effect before the effective date of this Act is subject to
37-25 the applicable provisions for enforcement and penalties which then
37-26 existed, and those provisions are continued in effect for the
37-27 purpose of this section.
38-1 SECTION 4. This Act takes effect September 1, 1997.
38-2 SECTION 5. The importance of this legislation and the
38-3 crowded condition of the calendars in both houses create an
38-4 emergency and an imperative public necessity that the
38-5 constitutional rule requiring bills to be read on three several
38-6 days in each house be suspended, and this rule is hereby suspended.