Article 13 Unclaimed Property Act

Transcription

1 December 2006 The Honorable Mike Coffman State Treasurer Colorado Department of the Treasury 140 State Capitol Denver, Colorado

2 Article 13 Unclaimed Property Act Cross references: For provisions concerning unclaimed utility deposits, see article 8.5 of title 40. Law reviews: For article, "Colorado's Unclaimed Property Act: An Overview", see 17 Colo. Law. 57 (1988). Section Short title Definitions and use of terms Property presumed abandoned - general rule General rules for taking custody of intangible unclaimed property Travelers' checks and money orders Checks, drafts, and similar instruments issued or certified by banking and financial organizations Bank deposits and funds in financial organizations Deposits held by utilities Refunds held by business associations Stock and other intangible interests in business associations Property of business associations held in the course of dissolution Property held by agents and fiduciaries Property held by courts and public agencies Gift certificates and credit memos Moneys held by the public employees' retirement association Wages Gaming chips or tokens - gaming award points - inapplicability Property held by racetracks - inapplicability Contents of safe deposit box or other safekeeping repository. December 2005 Page i

3 Funds owing under life insurance policies Tax refunds Report and payment or delivery of abandoned property Electronic notice of abandoned property Payment or delivery of abandoned property to the administrator Public employees' retirement association - initial report of abandoned property - payment of moneys. (Repealed) Custody by state - holder relieved from liability - waiver of rights by owner - reimbursement of holder paying claim - reclaiming for owner - defense of holder - payment of safe deposit box or repository charges Crediting of dividends, interest, or increments to owner's account Public sale of abandoned property Creation of funds - repeal. (Repealed) Unclaimed property trust fund - creation - payments - interest - appropriations - records - rules Unclaimed property tourism promotion trust fund - creation - payments - interest - transfers Filing of claim with administrator Claims offset for child support Claims offset for judicial restitution, fines, fees, costs, or surcharges Claims offset for state tax delinquencies Claim of another state to recover property - procedure Claim of the state or governmental agency Action to establish claim Election to take payment or delivery Destruction or disposition of property having insubstantial commercial value - immunity from liability. December 2005 Page ii

4 Periods of limitation Requests for reports and examination of records Retention of records Enforcement Interstate agreements and cooperation - joint and reciprocal actions with other states Interest and penalties Agreements to locate reported property Foreign transactions Effect of new provisions - clarification of application Rules Uniformity of application and construction Applicability - exclusions. (Repealed) Application of article to other sections. December 2005 Page iii

5 Short title. Article 13 Unclaimed Property Act This article shall be known and may be cited as the "Unclaimed Property Act". Source: L. 87: Entire article added, p. 1317, 1, effective July Definitions and use of terms. As used in this article, unless the context otherwise requires: (1) "Administrator" means the state treasurer. (2) "Apparent owner" means the person whose name appears on the records of the holder as the person entitled to property held, issued, or owing by the holder. (2.5) "Attorney general" means the chief legal officer of this state. (3) "Banking organization" means a bank, trust company, savings bank, industrial bank, safe deposit company, or private banker or any organization defined by other law as a bank or banking organization. (3.5) "Business association" means a nonpublic corporation, notwithstanding the provisions of section , C.R.S., joint stock company, investment company, business trust, partnership, or association for business purposes of two or more individuals, whether or not for profit, including a banking organization, financial organization, insurance company, or utility. (4) "Domicile" means the state of incorporation of a corporation and the state of the principal place of business of an unincorporated person. (5) "Financial organization" means a savings and loan association, cooperative bank, building and loan association, or credit union. (5.3) "Gaming award points" means any marketing or promotional coupons, certificates, player award or other cards, points, or other representatives of value that: (a) A licensed gaming establishment, in connection with its promotional activities, issues to a person for visiting the establishment, for using the services of the establishment, or for gambling at the establishment; and (b) May be redeemed at a licensed gaming establishment for cash or any other representative of value, food, products, goods, or services. (5.5) "Gaming chip or token" means a gaming chip, token, encoded credit certificate, or other representative of value that is issued and sold by a licensed gaming establishment for use in gaming, other than a card or similar device issued and sold by a licensed gaming establishment that is clearly identifiable on its face or encoding as being owned by a specific and designated person. December 2005 Page 1

6 (6) "Holder" means: (a) A person, wherever organized or domiciled, which is: (I) In possession of property belonging to another; (II) A trustee; or (III) Indebted to a person on an obligation; (b) The public employees' retirement association. (6.5) "Insurance company" means an association, corporation, or fraternal or mutual benefit organization, whether or not for profit, which is engaged in providing insurance coverage, including accident, burial, casualty, credit life, contract performance, dental, fidelity, fire, health, hospitalization, illness, life including endowments and annuities, malpractice, marine, mortgage, surety, or wage protection insurance. (7) (a) "Intangible property" includes: (I) Moneys, checks, drafts, deposits, interest, dividends, and income; (II) Credit balances, customer overpayments, gift certificates, refunds, credit memos, and unidentified remittances; (III) Stocks and other intangible ownership interests in business associations; (IV) Moneys deposited to redeem stocks, bonds, coupons, and other securities or to make distributions; (IV.5) Security deposits, unpaid wages, and unused airline tickets; (V) Amounts distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits; (VI) Amounts due and payable under the terms of insurance policies; tax; (VII) On and after October 1, 2002, any amount due and payable as a refund of Colorado income (VIII) On and after August 4, 2004, any amount due and payable as a refund of state taxes refunded pursuant to section , C.R.S. (b) "Intangible property" does not include unclaimed capital credit payments held by cooperative electric associations and telephone cooperatives, gaming chips or tokens, or gaming award points. (7.5) "Item" means: December 2005 Page 2

7 (a) In regard to intangible property, the total of all accounts, credit balances, deposits, or other forms of intangible property held under the name of any one apparent owner; except that, if the same apparent owner owns intangible property of different types or classes that cannot practicably be handled or accounted for at the same time or in the same way, each such type or class may be considered a separate item; (b) In regard to tangible personal property, the total of all such property held under the name of any one apparent owner. (8) "Last-known address" means a description of the location of the apparent owner sufficient for the purpose of the delivery of mail. (8.3) "Licensed gaming establishment" shall have the same meaning as set forth in section (15), C.R.S. (8.5) "Life insurance company" means any insurance company which is engaged in providing life or endowment insurance policies or annuity contracts. (9) "Owner" means a depositor in the case of a deposit, a beneficiary in case of a trust other than a deposit in trust, a creditor, claimant, or payee in the case of other intangible property, or a person having a legal or equitable interest in property subject to this article or his legal representative. (10) "Person" means an individual, business association, state or other government, governmental subdivision or agency, public corporation, public authority, estate, trust, two or more persons having a joint or common interest, or any other legal or commercial entity. (10.3) "State" means any state, district, commonwealth, territory, insular possession, or other area subject to the legislative authority of the United States. (10.7) "Utility" means a person who owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas. (11) "Verify" means the signing of an instrument, which signing constitutes the affirmation or acknowledgment of the person signing the instrument, under penalties of perjury, that the facts stated in the instrument are true and which signing is made before a person who is a notary public or who is authorized by the law of the place of execution to take acknowledgments or to administer oaths. Source: L. 87: Entire article added and (7)(a)(I) and (7)(b) amended, pp. 1317, 1335, 1, 6, effective July 1. L. 90: IP(6) amended and (6.5), (7)(a)(VI), and (8.5) added, p. 1632, 1, 2, effective April 27. L. 92: (6) amended, p. 2108, 3, effective March 4; (2.5), (3.5), (7)(a)(IV.5), (10.3), and (10.7) added and IP(6) and (7)(b) amended, p. 2115, 2, effective July 1. L. 95: (7.5) added, p. 522, 2, effective May 16. L. 2001: (7)(a)(VII) added, p. 618, 1, effective August 8. L. 2004: (5.3), (5.5), and (8.3) added and (7)(b) amended, p.1876, 1, effective August 4; (7)(a)(VIII) added, p. 314, 1, effective August Property presumed abandoned - general rule. (1) Except as otherwise provided by this article, all intangible property, including any income or increment derived therefrom, less any lawful charges, that is held, issued, or owing in the ordinary December 2005 Page 3

8 course of a holder's business and has remained unclaimed by the owner for more than five years after it became payable or distributable is presumed abandoned. (2) Property is payable or distributable for the purpose of this article notwithstanding the owner's failure to make demand or to present any instrument or document required to receive payment. Source: L. 87: Entire article added, p. 1318, 1, effective July General rules for taking custody of intangible unclaimed property. (1) Unless otherwise provided in this article or by other statute or local law, intangible property is subject to the custody of this state as unclaimed property if the conditions raising a presumption of abandonment under section or sections to are satisfied and: (a) The last-known address, as shown on records of the holder, of the apparent owner is in this state; (b) The records of the holder do not reflect the identity of the person entitled to the property and it is established that the last-known address of the person entitled to the property is in this state; (c) The records of the holder do not reflect the last-known address of the apparent owner and it is established that: (I) The last-known address of the person entitled to the property is in this state; or (II) The holder is a domiciliary of this state and has not previously paid or delivered the property to the state of the last-known address of the apparent owner or other person entitled to the property; (d) The last-known address, as shown on the records of the holder, of the apparent owner is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property and the holder is a domiciliary of this state; (e) The last-known address, as shown on the records of the holder, of the apparent owner is in a foreign nation and the holder is a domiciliary of this state; or (f) The transaction out of which the property arose occurred in this state and: (I) (A) The last-known address of the apparent owner or other person entitled to the property is unknown; or (B) The last-known address of the apparent owner or other person entitled to the property is in a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property; and (II) The holder is a domiciliary of a state that does not provide by law for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property. Source: L. 87: Entire article added, p. 1319, 1, effective July 1. L. 90: IP(1) amended, p. 1633, 3, effective April 27. L. 92: IP(1) amended, p. 2116, 3, effective July 1. L. 2001: IP(1) amended, p. December 2005 Page 4

9 618, 2, effective August Travelers' checks and money orders. (1) (a) Subject to subsection (3) of this section, any sum payable on a money order or similar written instrument, other than a third-party bank check or traveler's check, that has been outstanding for more than seven years after its issuance is presumed abandoned unless the owner, within seven years, has communicated in writing with the issuer concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the issuer. (b) Subject to subsection (3) of this section, any sum payable on a traveler's check that has been outstanding for more than fifteen years after its issuance is presumed abandoned unless the owner, within fifteen years, has communicated in writing with the issuer concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the issuer. (2) On or after July 1, 1987, a holder may not deduct from the amount of a traveler's check or money order any service fee or other charge imposed solely by reason of the failure to present the instrument for payment unless there is a valid and enforceable written contract between the issuer and the owner of the instrument pursuant to which the issuer may impose a charge and the issuer regularly imposes such charges and does not regularly reverse or otherwise cancel them. (3) No sum payable on a traveler's check or money order or similar written instrument, other than a third-party bank check, described in subsection (1) of this section may be subjected to the custody of this state as unclaimed property unless: (a) The records of the issuer show that the traveler's check, money order, or similar written instrument was purchased in this state; (b) The issuer has its principal place of business in this state and the records of the issuer do not show the state in which the traveler's check, money order, or similar written instrument was purchased; or (c) The issuer has its principal place of business in this state, the records of the issuer show the state in which the traveler's check, money order, or similar written instrument was purchased, and the laws of the state of purchase do not provide for the escheat or custodial taking of the property or its escheat or unclaimed property law is not applicable to the property. (4) Notwithstanding any other provision of this article, subsection (3) of this section applies to sums payable on travelers' checks, money orders, and similar written instruments presumed abandoned on or after February 1, 1965, except to the extent that those sums have been paid over to a state prior to January 1, Source: L. 87: Entire article added, p. 1319, 1, effective July 1; entire section R&RE, p. 1333, 1, effective July 1. Editor's note: Section 7 of chapter 275, Session Laws of Colorado 1987, provided that the act set out in that chapter amending this section was effective July 1, 1987, but the governor did not approve the act until July 10, Checks, drafts, and similar instruments issued or certified by banking and financial December 2005 Page 5

10 organizations. (1) Any sum payable on a check, draft, or similar instrument, except those subject to section , on which a banking or financial organization is directly liable, including a cashier's check and a certified check, which has been outstanding for more than five years after it was payable or after its issuance if payable on demand is presumed abandoned unless the owner, within five years, has communicated in writing with the banking or financial organization concerning it or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee thereof. (2) On or after July 1, 1987, a holder may not deduct from the amount of any instrument subject to this section any service fee or other charge imposed solely by reason of the failure to present the instrument for payment unless there is a valid and enforceable written contract between the holder and the owner of the instrument pursuant to which the holder may impose a charge and the holder regularly imposes such charges and does not regularly reverse or otherwise cancel them. Source: L. 87: Entire article added, p. 1320, 1, effective July 1; (2) amended, p. 1334, 2, effective July 1. Editor's note: Section 7 of chapter 275, Session Laws of Colorado 1987, provided that the act set out in that chapter amending subsection (2) was effective July 1, 1987, but the governor did not approve the act until July 10, Bank deposits and funds in financial organizations. (1) Any demand, savings, or matured time deposit with a banking or financial organization, including a deposit that is automatically renewable, and any funds paid toward the purchase of a share, a mutual investment certificate, or any other interest in a banking or financial organization is presumed abandoned unless the owner, within five years, has: (a) In the case of a deposit, increased or decreased its amount or presented the passbook or other similar evidence of the deposit for the crediting of interest; (b) Communicated in writing with the banking or financial organization concerning the property; (c) Otherwise indicated an interest in the property as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization; (d) Owned other property to which paragraph (a), (b), or (c) of this subsection (1) applies and unless the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise be presumed abandoned under this subsection (1) at the address to which communications regarding the other property regularly are sent; or (e) Had another relationship with the banking or financial organization concerning which the owner has: (I) Communicated in writing with the banking or financial organization; or (II) Otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the banking or financial organization and unless the banking or financial organization communicates in writing with the owner with regard to the property that would otherwise December 2005 Page 6

11 be abandoned under this subsection (1) at the address to which communications regarding the other relationship regularly are sent. (2) For purposes of subsection (1) of this section, "property" includes interest and dividends. (3) On or after July 1, 1987, a holder may not impose, with respect to property described in subsection (1) of this section, any service fee or other charge due solely to dormancy or inactivity or cease payment of interest unless: (a) There is an enforceable written contract between the holder and the owner of the property pursuant to which the holder may impose such fee or charge or cease payment of interest; (b) For property in excess of two dollars, the holder, no more than three months before the initial imposition of those charges or cessation of interest, has given written notice to the owner of the amount of those fees or charges at the last-known address of the owner stating that those fees or charges will be imposed or that interest will cease, but the notice provided in this section need not be given with respect to fees or charges imposed or interest ceased before July 1, 1987; and (c) The holder regularly imposes such fees or charges or ceases payment of interest and does not regularly reverse or otherwise cancel them or retroactively credit interest with respect to the property. (4) Any property described in subsection (1) of this section that is automatically renewable is matured for purposes of subsection (1) of this section upon the expiration of its initial time period, but, in the case of any renewal to which the owner consents at or about the time of renewal by communicating in writing with the banking or financial organization or otherwise indicating consent as evidenced by a memorandum or other record on file prepared by an employee of the organization, the property is matured upon the expiration of the last time period for which consent was given. If, at the time provided for delivery in section , a penalty or forfeiture in the payment of interest would result from the delivery of the property, the time for delivery is extended until the time when no penalty or forfeiture would result. Source: L. 87: Entire article added, p. 1320, 1, effective July 1; (3) amended, p. 1334, 3, effective July 1. L. 93: (2) amended, p. 1074, 2, effective July 1. Editor's note: Section 7 of chapter 275, Session Laws of Colorado 1987, provided that the act set out in that chapter amending subsection (3) was effective July 1, 1987, but the governor did not approve the act until July 10, Deposits held by utilities. Except as otherwise provided for unclaimed utility deposits under section , C.R.S., a deposit, including any interest thereon, made after January 1, 1992, by a subscriber with a utility to secure payment or any sum paid in advance after January 1, 1992, for utility services to be furnished, less any lawful deductions, that remains unclaimed by the owner for more than one year after termination of the services for which the deposit or advance payment was made is presumed abandoned. Source: L. 92: Entire section added, p. 2116, 4, effective July Refunds held by business associations. December 2005 Page 7

12 Except to the extent otherwise ordered by the court or administrative agency, any sum that a business association has been ordered to refund by a court or administrative agency which has remained unclaimed by the owner for more than one year after it became payable in accordance with the final determination or order providing for the refund, whether or not the final determination or order requires any person entitled to a refund to make a claim for it, is presumed abandoned. Source: L. 92: Entire section added, p. 2116, 4, effective July Stock and other intangible interests in business associations. (1) Except as provided in subsections (2) and (5) of this section, stock or other intangible ownership interest in a business association, the existence of which is evidenced by records available to the association, is presumed abandoned, and, with respect to the interest, the association is the holder if a dividend, distribution, or other sum payable as a result of the interest has remained unclaimed by the owner for five years and the owner within five years has not: (a) Communicated in writing with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest; or (b) Otherwise communicated with the association regarding the interest or a dividend, distribution, or other sum payable as a result of the interest, as evidenced by a memorandum or other record on file with the association prepared by an employee of the association. (2) At the expiration of a five-year period following the failure of the owner to claim a dividend, distribution, or other sum payable to the owner as a result of the interest, the interest is not presumed abandoned unless there have been at least five dividends, distributions, or other sums paid during the period, none of which has been claimed by such owner. If five dividends, distributions, or other sums are paid during the five-year period, the period leading to a presumption of abandonment commences on the date payment of the first such unclaimed dividend, distribution, or other sum became due and payable. If five dividends, distributions, or other sums are not paid during the presumptive period, the period continues to run until there have been five dividends, distributions, or other sums that have not been claimed by the owner. (3) The running of the five-year period of abandonment ceases immediately upon the occurrence of a communication pursuant to subsection (1) of this section. If any future dividend, distribution, or other sum payable to the owner as a result of the interest is subsequently not claimed by such owner, a new period of abandonment commences and relates back to the time a subsequent dividend, distribution, or other sum became due and payable. (4) At the time an interest is presumed abandoned under this section, any dividend, distribution, or other sum then held for or owing to the owner as a result of the interest, and not previously presumed abandoned, is presumed abandoned. (5) This article does not apply to: (a) Any stock or other intangible ownership interest enrolled in a plan that provides for the automatic reinvestment of dividends, distributions, or other sums payable as a result of the interest unless the records available to the administrator of the plan show, with respect to any intangible ownership interest not enrolled in the reinvestment plan, that the owner has not within five years communicated in the manner described in subsection (1) of this section; or December 2005 Page 8

13 (b) The unclaimed patronage credits of agricultural marketing and supply cooperatives as defined in subchapter T of the federal "Internal Revenue Code of 1986". Source: L. 92: Entire section added, p. 2116, 4, effective July 1. Editor's note: Subchapter T referenced in paragraph (b) of subsection (5) is contained in 26 U.S.C.S Property of business associations held in the course of dissolution. Intangible property distributable in the course of a dissolution of a business association which remains unclaimed by the owner for more than one year after the date specified for final distribution is presumed abandoned. Source: L. 92: Entire section added, p. 2118, 4, effective July Property held by agents and fiduciaries. (1) Intangible property and any income or increment derived therefrom held in a fiduciary capacity for the benefit of another person is presumed abandoned unless the owner, within three years after it has become payable or distributable, has increased or decreased the principal, accepted payment of principal or income, communicated concerning the property, or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by the fiduciary. (2) Funds in an individual retirement account or a retirement plan for self-employed individuals or similar account or plan established pursuant to the internal revenue laws of the United States are not payable or distributable within the meaning of subsection (1) of this section unless, under the terms of the account or plan, distribution of all or part of the funds would then be mandatory. (3) For the purpose of this section, a person who holds property as an agent for a business association is deemed to hold the property in a fiduciary capacity for that business association alone, unless the agreement between him and the business association provides otherwise. (4) For the purposes of this article, a person who is deemed to hold property in a fiduciary capacity for a business association alone is the holder of the property only insofar as the interest of the business association in the property is concerned, and the business association is the holder of the property insofar as the interest of any other person in the property is concerned. Source: L. 87: Entire article added, p. 1322, 1, effective July Property held by courts and public agencies. Intangible property held for the owner by a court, state or other government, governmental subdivision or agency, public corporation, or public authority which remains unclaimed by the owner for more than one year after becoming payable or distributable is presumed abandoned. Source: L. 92: Entire section added, p. 2118, 4, effective July Gift certificates and credit memos. December 2005 Page 9

14 (1) Except as provided in subsection (3) of this section, a gift certificate or a credit memo issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned. (2) In the case of a gift certificate, the amount presumed abandoned is the price paid by the purchaser for the gift certificate. In the case of a credit memo, the amount presumed abandoned is the amount credited to the recipient of the memo. (3) The provisions of this section shall apply to any gift certificate issued by a business that is redeemable in cash and not to any gift certificate issued for food, products, goods, or services. Source: L. 92: Entire section added, p. 2118, 4, effective July 1. L. 93: (1) amended and (3) added, p. 1075, 4, effective July Moneys held by the public employees' retirement association. (1) For the purposes of this section, unless the context otherwise requires: (a) "Account left inactive" means the contributions of any nonvested member who has terminated employment with an employer if such member's member contribution account with the association has been left inactive. (b) "Association" means the public employees' retirement association created pursuant to section , C.R.S. (c) "Benefit" shall have the same meaning as that provided for such term in section (7), C.R.S. (d) "Benefit recipient" shall have the same meaning as that provided for such term in section (8), C.R.S. (e) "Employer" shall have the same meaning as that provided for such term in section (20), C.R.S. (f) "Member" shall have the same meaning as that provided for such term in section (29), C.R.S. (g) "Unclaimed benefit" means a benefit owed to any benefit recipient if such benefit remains unpaid. (h) "Unclaimed member refund" means the contributions of a member who has terminated employment with an employer and who has requested a refund of such contributions if such refund remains unpaid. (2) Any moneys and any accrued interest which are held by the association for accounts left inactive, unclaimed benefits, or unclaimed member refunds shall be presumed to be abandoned if such moneys remain unclaimed for more than five years after such moneys become payable or distributable pursuant to the provisions of article 51 of title 24, C.R.S., unless the owner of such moneys, within five years, has: December 2005 Page 10

15 (a) Communicated in writing with the association concerning such moneys; or (b) Otherwise indicated an interest in such moneys as evidenced by a memorandum or other record on file prepared by an employee of the association. (3) Property which is presumed to be abandoned pursuant to the provisions of this section shall be the only property held by the association which is subject to the provisions of this article. Source: L. 92: Entire section added, p. 2109, 4, effective March Wages. Unpaid wages, including wages represented by unpresented payroll checks, owing in the ordinary course of the holder's business which remain unclaimed by the owner for more than one year after becoming payable are presumed abandoned. Source: L. 92: Entire section added, p. 2118, 4, effective July 1. ANNOTATION Law reviews. For article, "State Laws: A Growing Minefield for Employers", see 23 Colo. Law (1994) Gaming chips or tokens - gaming award points - inapplicability. This article shall not apply to gaming award points and gaming chips or tokens issued or sold by a licensed gaming establishment before, on, or after August 4, 2004, except to the extent the state has taken custody of any gaming award points or gaming chips or tokens on or before January 1, Source: L. 2004: Entire section added, p. 1877, 2, effective August Property held by racetracks - inapplicability. This article shall not apply to any intangible unclaimed property held by a racetrack, as that term is defined in section (26), C.R.S. Source: L. 92: Entire section added, p. 2118, 4, effective July 1. L. 93: Entire section amended, p. 1239, 12, effective July Contents of safe deposit box or other safekeeping repository. All tangible and intangible property held in a safe deposit box or any other safekeeping repository in this state in the ordinary course of the holder's business and proceeds resulting from the sale of the property permitted by any other law, which remain unclaimed by the owner for more than five years after the lease or rental period on the box or other repository has expired, are presumed abandoned. Source: L. 87: Entire article added, p. 1322, 1, effective July Funds owing under life insurance policies. December 2005 Page 11

16 (1) Funds held or owing under any life or endowment insurance policy or annuity contract that has matured or terminated are presumed abandoned if unclaimed for more than five years after the funds became due and payable as established from the records of the insurance company holding or owing the funds; except that property described in paragraph (b) of subsection (3) of this section is presumed abandoned if unclaimed for more than two years. (2) If a person other than the insured or annuitant is entitled to the funds and an address of the person is not known to the company or it is not definite and certain from the records of the company who is entitled to the funds, it is presumed that the last-known address of the person entitled to the funds is the same as the last-known address of the insured or annuitant according to the records of the company. (3) For purposes of this article, a life or endowment insurance policy or annuity contract not matured by actual proof of the death of the insured or annuitant according to the records of the company is matured and the proceeds due and payable if: (a) The company knows that the insured or annuitant has died; or (b) (I) The insured has attained, or would have attained if he were living, the limiting age under the mortality table on which the reserve is based; (II) The policy was in force at the time the insured attained, or would have attained, the limiting age specified in subparagraph (I) of this paragraph (b); and (III) Neither the insured nor any other person appearing to have an interest in the policy within the preceding two years, according to the records of the company, has assigned, readjusted, or paid premiums on the policy, subjected the policy to a loan, corresponded in writing with the company concerning the policy, or otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the company. (4) For purposes of this article, the application of an automatic premium loan provision or other nonforfeiture provision contained in an insurance policy does not prevent a policy from being matured or terminated under subsection (1) of this section if the insured has died or the insured or the beneficiary of the policy otherwise has become entitled to the proceeds thereof before the depletion of the cash surrender value of a policy by the application of such provisions. (5) If the laws of this state or the terms of the life insurance policy require the company to give notice to the insured or owner that an automatic premium loan provision or other nonforfeiture provision has been exercised, and the notice given to an insured or owner whose last-known address according to the records of the company is in this state is undeliverable, the company shall make a reasonable search to ascertain the policyholder's correct address to which the notice must be mailed. (6) Notwithstanding any other provision of law to the contrary, if the company learns of the death of the insured or annuitant and the beneficiary has not communicated with the insurer within four months after such death, the company shall take reasonable steps to pay the proceeds to the beneficiary. (7) Commencing July 1, 1992, every change of beneficiary form issued by an insurance company under any life or endowment insurance policy or annuity contract to an insured or owner who is a resident of this state shall request the following information: December 2005 Page 12

17 (a) The name of each beneficiary, or if a class of beneficiaries is named, the name of each current beneficiary in the class; (b) The address of each beneficiary; and (c) The relationship of each beneficiary to the insured. Source: L. 90: Entire section added, p. 1633, 4, effective April Tax refunds. (1) On and after October 1, 2002, any amount due and payable as a refund of Colorado income tax or grant for property taxes, rent, or heat or fuel expenses assistance represented by a warrant that has not been presented for payment within six months from the date of issuance of the warrant and that has been forwarded by the department of revenue to the administrator pursuant to section (5), C.R.S., is presumed abandoned. (2) On and after August 4, 2004, any amount due and payable as a refund of state taxes refunded pursuant to section , C.R.S., represented by a warrant that has not been presented for payment within six months from the date of issuance of the warrant and that has been forwarded by the department of revenue to the administrator pursuant to section (6), C.R.S., is presumed abandoned. Source: L. 2001: Entire section added, p. 618, 3, effective August 8. L. 2004: Entire section amended, p. 314, 2, effective August Report and payment or delivery of abandoned property. (1) (a) A person holding property, tangible or intangible, presumed abandoned and subject to custody as unclaimed property under this article shall report to the administrator concerning the property as provided in this section. (b) If a person is not subject to the requirements of this subsection (1) because the person does not hold any property, tangible or intangible, presumed abandoned under this article or the person meets the criteria established in paragraph (e) of subsection (4) of this section, the person shall not be required to notify the administrator of the person's exemption from this subsection (1). (2) The report must include: (a) Except with respect to money orders, the name, if known, and last-known address, if any, of each person appearing from the records of the holder to be the owner of property presumed abandoned under this article; (a.5) In the case of unclaimed funds of twenty-five dollars or more held or owing under any life or endowment insurance policy or annuity contract, the name, if known, and the last-known address, if any, of the insured or annuitant and of the beneficiary according to the records of the insurance company holding or owing the funds; (b) In the case of the contents of a safe deposit box or other safekeeping repository or of other tangible property, a description of the property and the place where it is held and may be inspected by December 2005 Page 13

18 the administrator and any amounts owing to the holder; (c) The nature and identifying number, if any, or a description of the property and the amount appearing from the records to be due, but items of value under twenty-five dollars each may be reported in the aggregate; (d) The date the property became payable, demandable, or returnable and the date of the last transaction with the apparent owner with respect to the property; and (e) Other information the administrator prescribes by rule as necessary for the administration of this article. (3) If the person holding property presumed abandoned and subject to custody as unclaimed property is a successor to other persons who previously held the property for the apparent owner or the holder has changed his name while holding the property, he shall file with his report any such prior name and all known names and addresses of each previous holder of the property. (4) (a) The report required by subsection (1) of this section shall be filed and, pursuant to section , payment or delivery of abandoned property shall be made before November 1 of each year as of June 30 next preceding, with the initial report to be filed before November 1, 1987, except as provided in paragraphs (b), (c), (d), and (e) of this subsection (4). (b) Notwithstanding the provisions of paragraph (a) of this subsection (4), the report of any life insurance company must be filed and, pursuant to section , payment or delivery of funds held or owing and presumed abandoned shall be made before May 1 of each year as of December 31 next preceding, with the initial report to be filed before May 1, (c) On written request by any person required to file a report and, pursuant to section , pay or deliver abandoned property, the administrator may postpone the reporting date. However, the reporting date for the initial report filed by insurance companies, other than life insurance companies pursuant to paragraph (a) of this subsection (4), under this article as required by section (2) shall in no case be postponed beyond December 30, (d) Notwithstanding the provisions of paragraph (a) of this subsection (4), the public employees' retirement association shall file an initial report on or before June 1, The public employees' retirement association shall file subsequent reports in conformance with the requirements of paragraph (a) of this subsection (4) on or before November 1, 1993, and on or before November 1 of each year thereafter. (e) (I) Any business association with annual gross receipts of less than five hundred thousand dollars that holds property, tangible or intangible, acquired during the immediately preceding five-year period of an aggregate value under three thousand five hundred dollars shall not be subject to the requirements of paragraph (a) of this subsection (4) and section until such time as the aggregate value of such property acquired during the immediately preceding five-year period exceeds three thousand five hundred dollars; except that, if any such business association holds an item of property of any one apparent owner acquired during such period of an aggregate value over two hundred fifty dollars, such business association shall report and pay or deliver such property to the administrator in accordance with paragraph (a) of this subsection (4) and section (II) Any organization exempt from taxation under section 501 (c) (3) of the federal "Internal Revenue Code of 1986", 26 U.S.C. 501 (c) (3), or its successor statute, that receives contributions December 2005 Page 14

19 totaling one million dollars or more annually and that holds property, tangible or intangible, acquired during the immediately preceding five-year period of an aggregate value under three thousand five hundred dollars shall not be subject to the requirements of paragraph (a) of this subsection (4) and section until such time as the aggregate value of such property acquired during the immediately preceding five-year period exceeds three thousand five hundred dollars; except that, if any such organization holds an item of property of any one apparent owner acquired during such period of an aggregate value over two hundred fifty dollars, such organization shall report and pay or deliver such property to the administrator in accordance with paragraph (a) of this subsection (4) and section (III) Any organization exempt from taxation under section 501 (c) (3) of the federal "Internal Revenue Code of 1986", 26 U.S.C. 501 (c) (3), or its successor statute, that receives contributions totaling less than one million dollars annually shall not be subject to the requirements of paragraph (a) of this subsection (4) and section (5) Except as provided in subsection (6) of this section, not more than one hundred twenty days before filing the report and, pursuant to section , paying or delivering the abandoned property required by this section, the holder in possession of property presumed abandoned and subject to custody as unclaimed property under this article shall send written notice to the apparent owner's last-known address, informing such owner that the holder is in possession of property subject to this article if: (a) The holder has in its records an address for the apparent owner which the holder's records do not disclose to be inaccurate; (b) The claim of the apparent owner is not barred by the statute of limitations; and (c) The property has a value of fifty dollars or more. (6) (a) (Deleted by amendment, L. 95, p. 523, 3, effective May 16, 1995.) (b) The public employees' retirement association shall comply with the requirements of subsection (5) of this section with regard to reports filed by the public employees' retirement association on or before November 1, 1993, and on or before November 1 of each year thereafter. Source: L. 87: Entire article added, p. 1322, 1, effective July 1; (4) amended, p. 1335, 1, effective July 1. L. 90: (2)(a.5) added and (4) amended, p. 1634, 5, 6, effective April 27. L. 92: (4)(a) and IP(5) amended and (4)(d) and (6) added, pp. 2110, 2111, 5, 6, effective March 4; (4) and IP(5) amended, p. 2118, 5, effective July 1. L. 93: (4)(a) amended and (4)(e) added, p. 1075, 5, effective July 1. L. 95: (1), IP(2), (4)(d), (4)(e), and (6)(a) amended, p. 523, 3, effective May 16. Editor's note: Amendments to subsections (4) and (5) by House Bill and House Bill were harmonized Electronic notice of abandoned property. (1) The administrator shall maintain an electronic, alphabetical list of the owners of unclaimed property and shall make such list available to the public on the world wide web. The administrator shall provide to each county treasurer and public library in the state a written copy of the list of owners of unclaimed property in that county. The office of the treasurer shall also maintain a written copy of the list of unclaimed property owners. December 2005 Page 15

20 (2) The electronic, alphabetical list of the names of owners of unclaimed property maintained pursuant to subsection (1) of this section shall include the following information: (a) (Deleted by amendment, L. 2004, p. 1148, 1, effective August 4, 2004.) (b) A statement that information concerning the property may be obtained by any person possessing an interest in the property by addressing an inquiry to the administrator; and (c) (I) A statement that any person claiming an interest in the property must file a proof of claim with the administrator pursuant to section (II) (Deleted by amendment, L. 95, p. 524, 4, effective May 16, 1995.) (3) (Deleted by amendment, L. 2004, p. 1148, 1, effective August 4, 2004.) (4) Not later than March 1 of the year immediately following the report required by section or, in the case of property reported by life insurance companies, not later than September 1 of the year of the report required by section , the administrator shall mail a notice to each person whose last-known address is listed in the report and who appears to be entitled to property of the value of fifty dollars or more presumed abandoned under this article and any beneficiary of a life or endowment insurance policy or annuity contract for whom the administrator has a last-known address. (5) The mailed notice must contain: (a) A statement that property is being held to which the addressee appears entitled; and (b) A statement that any person claiming an interest in property being held must file a proof of claim with the administrator pursuant to section (6) This section is not applicable to sums payable on money orders and other written instruments presumed abandoned under section (7) The administrator shall limit the amount of moneys expended for publication and necessary correspondence pursuant to this section to not more than two percent of the previous year's paid claims from the unclaimed property trust fund created in section Source: L. 87: Entire article added, p. 1323, 1 effective July 1. L. 90: (1), (2)(c), and (4) amended, p. 1635, 7, effective April 27. L. 92: (1), (2)(c), and (4) amended, p. 2111, 7, effective March 4; (2)(b), (2)(c), and (5) amended, p. 2119, 6, effective July 1. L. 95: (1), (2)(c)(II), and (4) amended, p. 524, 4, effective May 16. L. 2004:(1), IP(2), (2)(a), and (3) amended and (7) added, p. 1148, 1, effective August 4; (2)(c)(I) amended, p. 1205, 82, effective August 4. Editor's note: Amendments to subsection (2)(c) by House Bill and House Bill were harmonized Payment or delivery of abandoned property to the administrator. (1) (a) Except as otherwise provided in subsection (2) of this section, a person who is required to file a report under section shall pay or deliver to the administrator all abandoned property required to be reported at the time such report is filed. December 2005 Page 16